India-UAE Strategic Partnership: Trade to Double by 2032, Digital Embassy Planned
India and the United Arab Emirates (UAE) announced several agreements on January 19 to strengthen their strategic partnership. These include doubling bilateral trade to over $200 billion by 2032, enhancing cooperation in large nuclear reactors and small modular reactors, and India's participation in UAE sovereign wealth funds’ infrastructure investments starting 2026.
The agreements were announced at the conclusion of UAE President Sheikh Mohammed bin Zayed Al Nahyan’s visit to India. The visit, described as “brief but highly substantive,” included meetings between Prime Minister Narendra Modi and the UAE President, with several documents exchanged. Discussions also touched on the proposed Gaza Peace Board by former US President Donald Trump.
Key Agreements and Initiatives
- Long-term LNG purchase agreement between Hindustan Petroleum Corporation Limited (HPCL) and Abu Dhabi National Oil Company Gas (ADNOC Gas) of 0.5 MMTPA starting in 2028 for ten years.
- UAE companies, First Abu Dhabi Bank and DP World, to establish offices and operations in GIFT City, Gujarat, supporting trade and investment.
- Memorandum of Understanding for investment cooperation in Dholera Special Investment Region, including strategic infrastructure like an international airport, pilot training school, MRO facility, greenfield airport, small urban township, railway connectivity, and energy infrastructure.
- Enhanced cooperation in space, defense, and food security. UAE’s G42 will help set up a supercomputing cluster in India.
- Exploration of a digital data embassy and establishment of ‘House of India’ in Abu Dhabi.
- Focus on MSMEs, IndiaMart, Virtual Trade Corridors, and India-Africa Bridge initiatives to boost new markets as part of doubling trade by 2032.
The visit also highlighted that India-UAE bilateral trade reached $100 billion in FY 2024-25 under the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022. Both sides agreed to integrate national payment platforms to ensure fast, efficient, and cost-effective cross-border payments.