New Delhi/Dubai: In a major diplomatic and economic breakthrough, **India and the United Arab Emirates (UAE) today signed a landmark $3 billion liquefied natural gas (LNG) supply agreement, alongside commitments to deepen trade links and expand defence cooperation.
Under the long-term energy pact, UAE’s state-owned ADNOC Gas will supply 0.5 million tonnes of LNG annually to India’s Hindustan Petroleum Corporation Ltd (HPCL) over a 10-year period — beginning in 2028 — cementing India’s position as one of the UAE’s most important energy customers.
The deal was finalised during a high-level meeting in New Delhi between UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi, who also agreed to revitalise bilateral relations across multiple fronts.
Strategic and Economic Priorities
- Trade ambitions elevated: Both nations pledged to double two-way trade to $200 billion within the next six years, reflecting rapidly expanding commercial ties.
- Defence cooperation boosted: A letter of intent for a strategic defence partnership was signed, setting the stage for enhanced military collaboration, training exchanges, and industrial linkages.
The agreements mark a notable expansion in India–UAE relations, which have grown steadily since the Comprehensive Economic Partnership Agreement (CEPA) was implemented in 2022 and have now extended into energy security and strategic defence cooperation.
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Officials noted that the strengthened partnership comes amid shifting geopolitical dynamics in the Middle East and South Asia, with both capitals emphasizing mutual respect for regional stability and strategic autonomy.
This multifaceted engagement — spanning energy, trade, and defence — is viewed as a defining moment in 21st-century India–Gulf cooperation, with far-reaching implications for regional geopolitics and global energy markets.
