India-UAE Double Bilateral Trade Target To $200 Billion By 2032; Big Decision In Defence, LNG, Energy Sectors

In a major development, India and the United Arab Emirates (UAE) have further strengthened their trade partnership. The two countries have now decided to double their bilateral trade to $200 billion by 2032. The decision took place on January 19, when the United Arab Emirates, His Highness Sheikh Mohamed bin Zayed Al Nahyan met Prime Minister Narendra Modi. The two leaders discussed major defence and energy deals.

The two leaders decided to double bilateral trade to target $ 200 billion by 2032, while underscoring the UAE's contribution to India's energy security. Hence, they also welcomed a 10-year LNG supply agreement.

Notably, the LNG pact will be signed between India's leading Maharatna PSU, Hindustan Petroleum Corporation Limited (HPCL) and UAE-based ADNOC Gas, under which, the duo will delivery approximately 0.5 million tonnes per year of liquefied natural gas. The delivery is expected to commence in 2028.

Also, Modi and UAE highness have decided to explore partnership in advanced nuclear technologies, including development and deployment of large nuclear reactors and Small Modular Reactors (SMRs), as well as cooperation in advanced reactor systems, nuclear power plant operations and maintenance and nuclear safety.

Furthermore, defence sector was another key area where the two leaders acknowledged steady and strong bilateral defence and security cooperation as a core pillar of the Comprehensive Strategic Partnership.

Accordingly, they welcomed the momentum generated by the recent exchange of visits by the respective Service Chiefs and Commanders of the Army, Navy and Air Force of both countries, and the successful conduct of bilateral military exercises. Further, they signed Letter of Intent towards the conclusion of a Strategic Defence Partnership.

During the meeting, the two leaders acknowledged the robust growth in trade and economic cooperation since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022 and further observed the rapid growth of bilateral trade, which touched $ 100 billion in the financial year 2024-25.

Moreover, the two countries recognised the need to connect Micro, Small and Medium Sector Enterprises (MSMEs) on both sides. And hence, they called for the expeditious implementation of key initiatives, such as the 'Bharat Mart', the 'Virtual Trade Corridor' and the 'Bharat-Africa Setu' to promote MSME products across the Middle East, West Asia, Africa and the Eurasia region.

Highlighting the success of the first NIIF Infrastructure Fund, the Prime Minister of India invited UAE sovereign wealth funds to consider participation in the second Infrastructure Fund, scheduled for launch in 2026. The two leaders welcomed the establishment of DP World and First Abu Dhabi Bank branches in GIFT City, reinforcing its emergence as a leading international financial center. FAB's GIFT City branch will act as a key bridge, connecting Indian corporates and investors to its expertise and global network across the GCC and MENA markets.

Additionally, both sides recognised food security's strategic importance in ensuring sustainable supply chains and long-term resilience. They underscored the role of public-private partnerships, innovation and knowledge exchange in advancing sustainable agriculture and enhancing national food resilience in line with the national priorities of both countries.

Lastly, they reiterated their unequivocal condemnation of terrorism in all its forms and manifestations, including cross-border terrorism, and emphasised that no country should provide safe haven to those who finance, plan, support or commit terrorist acts. They agreed to continue cooperation within the framework of the Financial Action Task Force (FATF) to counter terror financing and strengthen anti-money laundering efforts.