India and the UAE finalised multiple agreements in New Delhi to deepen cooperation across trade, energy, defence and technology, and set a goal to double bilateral trade to $200 billion by 2032. Key deals include a 10-year LNG purchase pact for 0.5 million metric tons annually from 2028 and a letter of intent on a strategic defence framework. The UAE also pledged investment for a special region in Gujarat. The visit comes amid heightened tensions in West Asia, underscoring both countries’ desire for closer strategic alignment.
India and UAE Finalise Major Trade and Strategic Deals, Aim To Double Commerce To $200 Billion By 2032
Indian Prime Minister Narendra Modi, left, walks with Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates upon his arrival at the airport in New Delhi, India, Monday, Jan. 19, 2026. (Indian Prime Minister's Office via AP)(ASSOCIATED PRESS)
India and the United Arab Emirates concluded a package of agreements in New Delhi on Monday that aim to deepen economic and strategic ties and double bilateral trade to $200 billion by 2032, officials said.
The UAE president, Sheikh Mohamed bin Zayed Al Nahyan, met with India’s prime minister, Narendra Modi, in talks focused on expanding cooperation across trade, energy, defence and emerging technologies, India’s foreign secretary, Vikram Misri, told reporters.
Key Agreements
Among the deals, India agreed to import 0.5 million metric tons of liquefied natural gas (LNG) annually from the UAE for 10 years, starting in 2028. A letter of intent was also signed to pursue a framework agreement for a strategic defence partnership. Additional accords were reached in the space and food sectors.
Indian Prime Minister Narendra Modi, right, welcomes Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, at the airport in New Delhi, India, Monday, Jan. 19, 2026. (Indian Prime Minister's Office via AP)(ASSOCIATED PRESS)
The two countries have seen trade accelerate since signing a Comprehensive Economic Partnership Agreement (CEPA) in February 2022, which reduced tariffs and widened market access for goods and services. Bilateral trade has since surpassed $100 billion, and the leaders have set a joint target of doubling that figure by 2032.
Investment and Infrastructure
The UAE pledged an unspecified investment to develop a special investment region in Gujarat, Prime Minister Modi’s home state. The project is planned to include airports, ports and smart urban townships to support industrial growth and logistics.
Context: Regional Tensions
The visit took place amid heightened tensions and diplomatic turbulence across West Asia, including recent developments involving Iran, ongoing instability in Gaza and persistent frictions tied to the conflict in Yemen. Officials said the talks underline the strategic depth of India–UAE relations and the two countries’ intent to remain closely aligned amid regional uncertainty and shifting global alliances.
“India–UAE relationship is warm, growing and multifaceted,” said Harsh Pant, Vice President for Foreign Policy at the Observer Research Foundation in New Delhi. “With turmoil in West Asia, including developments around Gaza and tensions with Iran, this is a moment for both countries seeking regional stability to exchange notes.”
India maintains deep economic links and a sizable diaspora across West Asia and has sought to sustain engagement with key regional partners as New Delhi navigates an increasingly complex geopolitical landscape.
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