India and the United Arab Emirates formalized a groundbreaking strategic defence partnership framework on Sunday as Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan announced ambitious plans to double bilateral trade to $200 billion by 2032, significantly deepening their comprehensive strategic relationship.
The landmark agreements were signed during a brief but high-impact visit by Sheikh Mohamed to New Delhi, marking his fifth trip to India in the past decade and third official visit as UAE President. PM Modi personally received the UAE leader at Palam Air Base in a rare gesture highlighting the close personal rapport between the two leaders, with talks concluding within approximately two hours.
The Strategic Defence Partnership Framework will facilitate unprecedented collaboration in defence manufacturing, advanced technologies, cybersecurity, counter-terrorism operations, military training, and operational interoperability between the two armed forces. The agreement positions India and the UAE as key defence partners in an increasingly complex regional security environment.
Analysts view the defence pact as India’s strategic response to Pakistan’s Strategic Mutual Defence Agreement signed with Saudi Arabia in September, which declared that “any aggression against either country shall be considered an aggression against both.” The India-UAE defence framework signals New Delhi’s determination to strengthen security partnerships across West Asia to balance shifting regional alignments.
Beyond defence cooperation, the two nations signed a comprehensive 10-year liquefied natural gas supply agreement between Hindustan Petroleum Corporation Limited and ADNOC Gas for delivery of 0.5 million tonnes per year beginning in 2028, valued between $2.5 billion and $3 billion. The energy partnership underscores the UAE’s critical role in India’s energy security strategy.
In the space sector, India’s IN-SPACe and the UAE Space Agency signed a Letter of Intent for joint infrastructure development including launch complexes, satellite fabrication facilities, space missions, and training centers. The space collaboration reflects both nations’ ambitions to become leading players in commercial space activities and exploration.
The leaders also directed their teams to explore establishing “Digital Embassies” between the UAE and India under mutually recognized sovereignty arrangements, a novel diplomatic concept that would leverage technology for enhanced bilateral engagement. Additionally, UAE committed to major investments in Gujarat’s Dholera Special Investment Region, including development of international airports, ports, urban townships, railway connectivity, and aviation training facilities.
PM Modi invited UAE sovereign wealth funds to participate in India’s second NIIF Infrastructure Fund scheduled for launch, building on the success of the first fund. The bilateral investment treaty signed in 2024 has already strengthened investment flows across multiple sectors in both countries.
Bilateral trade between India and the UAE has reached $100 billion, making the UAE India’s second-largest export destination with exports reaching $37 billion. The UAE hosts over 3.5 million Indians, the largest expatriate community in the country, providing a strong foundation for people-to-people ties underpinning the strategic partnership. The agreements also covered cooperation in civil nuclear technology, including large reactors and Small Modular Reactors, following India’s enactment of the SHANTI law that creates new opportunities for nuclear cooperation.
