India and UAE Deepen Strategic Partnership, Set $200 Billion Trade Target by 2032

India and the United Arab Emirates took a decisive step toward strengthening their long-standing partnership during talks between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi. The meeting reaffirmed the depth of trust between the two leaderships and highlighted a shared vision for expanding cooperation across economic, strategic and technological domains. The visit, though short, carried significant diplomatic and economic weight, reflecting the increasingly central role of the India–UAE relationship in regional and global affairs.

Image from OpIndia

Ambitious Trade Expansion Under CEPA Framework

A key outcome of the discussions was the decision to work toward doubling bilateral trade to $200 billion by 2032. This ambitious target builds on the momentum created by the Comprehensive Economic Partnership Agreement (CEPA), which came into force in 2022 and has already propelled annual trade beyond the $100 billion mark. Both sides acknowledged that CEPA has streamlined market access, boosted non-oil trade and strengthened supply chains, creating a strong foundation for future growth.

The leadership emphasized expanding cooperation in sectors such as manufacturing, food security, logistics, digital trade and services. India’s growing production capacity and the UAE’s role as a global trade and financial hub were identified as complementary strengths that can drive sustained economic expansion over the next decade.

Energy Security Takes Centre Stage

Energy cooperation emerged as a central pillar of the renewed partnership. India and the UAE finalized a long-term liquefied natural gas agreement under which the UAE will supply LNG to India for a ten-year period starting in 2028. This deal reinforces India’s strategy of securing reliable and diversified energy sources while underlining the UAE’s role as one of India’s most dependable energy partners.

Beyond conventional energy, the discussions also touched upon collaboration in renewable energy, hydrogen and future-ready energy technologies. Both nations expressed interest in aligning their energy transition goals while ensuring stability and affordability in the near term.

Defence and Strategic Cooperation Gains Momentum

The talks also marked progress toward a more structured defence partnership. India and the UAE agreed to advance cooperation in defence manufacturing, training and capacity building, reflecting growing strategic trust. The leadership underscored the importance of joint efforts in counter-terrorism and security cooperation, particularly in light of regional instability and evolving global security challenges.

This expanding defence engagement reflects a broader strategic convergence, with both countries seeking to safeguard regional stability while maintaining strategic autonomy.

Technology, Space and Innovation Collaboration

Recognizing the importance of emerging technologies, India and the UAE agreed to expand collaboration in advanced sectors including space, artificial intelligence and digital infrastructure. Cooperation between India’s space regulatory bodies and the UAE Space Agency is expected to open new avenues in space infrastructure and commercial applications.

The leaders also discussed strengthening digital public infrastructure, innovation ecosystems and data-driven technologies. These initiatives align with India’s push for technological self-reliance and the UAE’s ambition to position itself as a global innovation hub.

Investment, Infrastructure and Financial Connectivity

Investment cooperation featured prominently in the discussions, with the UAE reaffirming its interest in participating in India’s large-scale infrastructure and industrial projects. Strategic regions such as Dholera Special Investment Region and GIFT City were highlighted as key areas for collaboration, offering opportunities in smart infrastructure, finance and logistics.

Financial connectivity between the two countries is also set to deepen, with plans to enhance institutional linkages and explore faster, more efficient cross-border payment mechanisms.

Regional Stability and Shared Global Outlook

Beyond bilateral issues, the leaders exchanged views on regional and global developments, particularly in West Asia. Both sides reiterated their commitment to peace, stability and dialogue, and jointly condemned terrorism in all its forms. The discussions reflected a shared understanding of the interconnected nature of economic growth, security and regional stability.

The MGMM Outlook

India and the UAE’s latest high-level engagement reflects how the relationship has moved beyond traditional diplomacy into a results-driven strategic partnership. The decision to target $200 billion in bilateral trade by 2032 builds on the strong foundation created by CEPA, which has already transformed trade flows and non-oil cooperation. What stands out is the clear alignment of economic strengths: India’s expanding manufacturing and services ecosystem complements the UAE’s position as a global logistics, trade and financial hub. This synergy is being extended into critical areas such as food security, digital trade, infrastructure investment and financial connectivity, indicating that the partnership is being structured for long-term, sustainable growth rather than short-term gains.

Equally significant is the deepening cooperation in energy, defence and technology, underscoring the strategic maturity of the relationship. Long-term LNG supply arrangements enhance India’s energy security while reinforcing the UAE’s role as a reliable partner, even as both countries explore renewables, hydrogen and future energy technologies. The expansion of defence collaboration, counter-terrorism efforts and cooperation in space, artificial intelligence and digital public infrastructure highlights growing trust and shared strategic interests. Together, these developments signal a partnership that is increasingly central to regional stability and global economic networks, with India and the UAE positioning themselves as long-term partners shaping a shared future.

(Sources: OpIndia, Firstpost, Economic Times)