India-UAE agreements cover energy reserves, LPG supply, defence, and shipping with USD 5 billion pledge

India and the UAE signed six agreements on Friday, covering energy, defence, shipping, and advanced technology. The deals came as Prime Minister Narendra Modi held talks with President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi. The talks took place during a wider West Asia conflict that has raised Indian concerns about fuel shipments.

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The UAE also announced investments worth USD 5 billion in India, which Modi said will deepen economic links. The Ministry of External Affairs said the commitments aim to build stronger markets and support job creation. Officials linked the economic package to the wider India-UAE comprehensive strategic partnership and its expanding scope.

India-UAE agreements on strategic petroleum reserves and LPG supply

A key agreement was signed by Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company. It aims to support India’s energy security through work on petroleum reserves. The official statement also mentioned possible cooperation on liquid natural gas and liquefied petroleum gas storage facilities.

The same agreement will raise the UAE’s participation in India’s strategic petroleum reserves to 30 million barrels. It also includes plans to set up strategic gas reserves in India, the statement said. Another pact between Indian Oil Limited Company and Abu Dhabi National Oil Company targets expanded LPG trade.

That LPG pact is meant to create new options for buying and selling the fuel. It also includes the prospect of a long-term sale-and-purchase agreement between the two firms. India and the UAE also signed a separate strategic collaboration pact on LPG to support long-term supply.

India-UAE defence partnership and regional security cooperation

India and the UAE signed a framework for a strategic defence partnership, the MEA said. It focuses on defence industrial cooperation, technology sharing, innovation, and regional security coordination. Officials said both sides will explore joint development of military equipment and widen cooperation across several areas.

The official statement listed training, exercises, maritime security, cyber defence, secure communications, and information exchange. The broader package also included a term sheet for a super-computing cluster. It is meant to support India’s artificial intelligence and high-performance computing capabilities.

"This will add to Indias AI mission and the infrastructure involved with that,\" said Misri.

India-UAE shipping deals and the virtual trade corridor

Other agreements targeted shipping and coastal capacity. The two sides agreed to set up a ship repair centre at Vadinar in Gujarat. They also signed arrangements on ports and coastal infrastructure, plus skill development for ship repair. Cochin Shipyard Limited also signed an agreement with Drydocks World of Dubai.

The MEA said the leaders welcomed the operationalisation of a virtual trade corridor. It links customs and port authorities in both countries to speed cargo movement. Officials said it should reduce logistics costs and transit time. It is also expected to improve customs coordination and cargo efficiency.

\"It is also expected to help the two countries in building supply chain resilience in a world that is seeing increasing disruption in supply chains,\" said Misri.

India-UAE talks amid West Asia conflict and Strait of Hormuz risks

The agreements were signed as fighting in West Asia increased worries in India. Officials flagged risks to crude oil and gas flows through the Strait of Hormuz. The route is critical for India’s energy imports. Modi said the new agreements were important for energy, defence, infrastructure, shipping, and advanced technologies.

The two leaders also discussed the West Asia crisis. \"We condemn the attacks on the UAE,\" Modi said in opening remarks. Modi added that the way UAE has been targeted is not acceptable. The UAE, which hosts a major US military base, has faced Iranian strikes since February 28.

Modi praised the Emirati leadership for showing restraint during the crisis. Modi said India was ready to extend all possible support to bring peace in West Asia. The visit also came as Gulf states faced differences on oil output policies, Hormuz blockade risks, and alignments involving Israel and Iran.

India-UAE investment commitments and Modi’s multi-nation tour

The MEA said the USD 5 billion investment commitment included work between Abu Dhabi Investment Authority and India’s National Infrastructure and Investment Fund. They will explore investments of up to USD 1 billion in India’s infrastructure sector. Emirates NBD will invest USD 3 billion in RBL Bank.

The ministry also said UAE-based International Holding Company will invest USD 1 billion in Sammaan Capital of India. Foreign Secretary Vikram Misri said the UAE is a major investor in India. Misri said it is cumulatively the seventh-largest investor in India over the last 25 years.

\"This visit is a reflection of the exceptional trust and confidence that marks this very, very important relationship between India and the United Arab Emirates, said Misri, highlighting the energy sector which he said has always been a very important part of India-UAE relationship.\"

Al Nahyan received Modi at the Abu Dhabi airport and a ceremonial guard of honour followed. In a special gesture, UAE military jets escorted Modi’s aircraft. The MEA said this was Modi’s eighth visit to the UAE in 12 years. The Abu Dhabi stopover was the first leg of a five-nation tour.

Modi described the visit as brief yet productive, and referred to the outcomes. \"Held extensive discussions with my brother, His Highness Sheikh Mohamed bin Zayed Al Nahyan, on ways to further deepen the India-UAE Comprehensive Strategic Partnership.\" Modi later left for the Netherlands, as the tour continues to Sweden, Norway, Italy, and the Netherlands.

With inputs from PTI