India, UAE set $200 billion trade target as ties deepen across defence, energy, space. Key details

India and the United Arab Emirates on January 19 agreed to significantly deepen their Comprehensive Strategic Partnership, setting a target to double bilateral trade to $200 billion by 2032 while expanding cooperation across defence, energy, space, technology and infrastructure.  

The decisions followed an official visit to India by UAE President Sheikh Mohamed bin Zayed Al Nahyan at the invitation of Prime Minister Narendra Modi. This was the UAE leader’s fifth visit to India in the last decade and his third official visit as President.  

Trade, investment take centre stage  

The two leaders reviewed the full scope of bilateral relations and noted strong momentum since the signing of the Comprehensive Economic Partnership Agreement in 2022, with bilateral trade reaching $100 billion in FY2024-25.  

They agreed to strengthen economic linkages by connecting micro, small and medium enterprises on both sides through initiatives such as Bharat Mart, the Virtual Trade Corridor and Bharat-Africa Setu, aimed at opening new markets across West Asia, Africa and Eurasia.  

Dholera investment, financial sector push  

A key outcome of the visit was a Letter of Intent between the Gujarat government and the UAE Ministry of Investment for UAE participation in the development of the Dholera Special Investment Region. The proposed partnership includes strategic infrastructure such as an international airport, port, urban township, railway connectivity and energy facilities.  

The two sides also welcomed the establishment of operations by First Abu Dhabi Bank and DP World in Gujarat’s GIFT City, reinforcing its emergence as an international financial and services hub.  

Energy, nuclear cooperation strengthened  

India and the UAE reinforced their energy partnership with the signing of a 10-year LNG supply agreement under which India will import 0.5 million tonnes of liquefied natural gas annually starting in 2028.  

The leaders also agreed to explore cooperation in advanced nuclear technologies, including large nuclear reactors and small modular reactors, following the enactment of India’s SHANTI law, as well as collaboration in nuclear safety and plant operations.  

Defence, space and emerging technologies  

Defence ties were elevated with a Letter of Intent to work towards a Strategic Defence Partnership Framework covering defence manufacturing, innovation, cyber security, training, and counter-terrorism.  

The two countries agreed to deepen collaboration in space and emerging technologies, including artificial intelligence. Plans include setting up a supercomputing cluster in India under the AI India Mission and pursuing joint initiatives to develop space infrastructure and commercial capabilities.  

Culture, education and people-to-people ties  

Both sides agreed to strengthen cultural and educational cooperation, including the establishment of a ‘House of India’ in Abu Dhabi and expanded youth exchanges.  

They also welcomed plans to integrate India’s DigiLocker with UAE platforms for seamless recognition of academic credentials, aimed at improving ease of living and mobility for students and professionals.  

Regional and global cooperation  

The leaders reaffirmed their shared commitment to counter-terrorism and regional stability, and exchanged views on regional and global issues of mutual interest, including connectivity initiatives and climate-linked scientific cooperation.  

President Sheikh Mohamed bin Zayed Al Nahyan thanked Prime Minister Modi for the warm hospitality, with both sides expressing confidence that the visit’s outcomes would further anchor the India-UAE partnership in the coming decade.