UAE and India to Double Trade to $200 Billion and Sign Long-Term LNG Deal Under Expanded Strategic Partnership

Abu Dhabi | EcoPulse24
According to Bloomberg, the United Arab Emirates and India have agreed to double their bilateral trade to $200 billion by 2032. The two countries also signed a long-term contract for the supply of liquefied natural gas (LNG), reflecting a deepening economic and strategic partnership amid increasing global geopolitical uncertainty.

The agreement was reached during a bilateral meeting in New Delhi between Indian Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, who made his third official visit to India since assuming the presidency. Vikram Misri, India’s chief diplomat, described the deal as a "major partnership," which includes Emirati investments in the Dholera Special Investment Region in western India.

These investments will support the development of a new international airport, aircraft maintenance and overhaul facilities, advanced rail connectivity, and a pilot training school, all aimed at strengthening India's industrial and logistics infrastructure with direct UAE backing.

In the energy sector, Misri announced that ADNOC Gas has agreed to supply India's Hindustan Petroleum with about 0.5 million metric tons of LNG annually for ten years, starting in 2028. ADNOC estimates the contract’s value between $2.5 billion and $3 billion.

This comes at a time when UAE-India relations have accelerated over the past decade. Observers note that the return of Donald Trump to the U.S. political scene has added momentum to both countries’ efforts to enhance their economic and defense partnership.

The two sides also agreed to deepen military cooperation, including joint weapons production and enhanced defense coordination, and to explore new areas such as artificial intelligence. Financially, they agreed to link India’s Unified Payments Interface platform, while First Abu Dhabi Bank and DP World are establishing operations in Gujarat’s GIFT City International Financial Centre.