India and the United Arab Emirates on Monday signed a major energy and defence agreement during a brief visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi, as both countries moved to deepen trade, security and strategic ties amid rising tensions in the Gulf region.
During talks with Prime Minister Narendra Modi, the two sides sealed a 10 year liquefied natural gas deal worth about three billion dollars, under which Abu Dhabi National Oil Company Gas will supply 0.5 million metric tonnes of LNG annually to Hindustan Petroleum Corporation Limited starting from 2028. ADNOC Gas said the deal makes India its largest LNG customer and takes the total value of its contracts with India to over 20 billion dollars.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said in a statement.
The energy agreement was signed alongside a Letter of Intent to work towards a bilateral Strategic Defence Partnership. The decision came as the two leaders set an ambitious target of doubling India UAE bilateral trade to 200 billion dollars by 2032.
Foreign Secretary Vikram Misri said the defence understanding should not be seen as India preparing to enter regional conflicts. “I would characterise it as a natural evolution from the already considerable defence cooperation between the two countries and not necessarily a response to any specific event in the region,” he told reporters.
Responding to questions about whether closer defence ties with the UAE could pull India into future conflicts in the Gulf, Misri said, “Our involvement on the defence and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region.”
The talks took place against the backdrop of growing instability in West Asia, including tensions linked to Gaza, protests in Iran, and the ongoing conflict in Yemen. Officials said Modi and Sheikh Mohamed discussed the situation in Gaza, Yemen and wider regional developments. Both leaders also welcomed stronger cooperation in civil nuclear energy.
India has traditionally taken a cautious approach to conflicts in the Gulf, given its dependence on energy supplies from the region and the presence of millions of Indian workers in countries such as the UAE and Saudi Arabia. The UAE is currently India’s third largest trading partner.
During the visit, the two sides also discussed new areas of cooperation, including digital embassies to protect sovereign data and expanded collaboration in space. A separate Letter of Intent was signed between India’s National Space Promotion and Authorisation Centre and the UAE Space Agency to develop joint space missions, strengthen the space industry and promote startups and skilled jobs in both countries.
In a joint statement, the two countries said the space partnership aims to create “an integrated space ecosystem with end to end infrastructure and a strong industrial base.”
