PM Modi and Sheikh Mohamed bin Zayed Seal $200 Billion Trade Target and Defence Partnership in Historic Delhi Visit

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Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan have set a historic $200 billion trade target over the next six years, with the two nations announcing a strategic defence partnership and a 10-year LNG supply agreement worth 0.5 million tonnes per year. The UAE is India's second-largest supplier of LNG and LPG, and the two nations aim to double their bilateral trade by 2032. During the three-hour visit, Modi and MBZ reviewed bilateral collaboration in various sectors, including innovation, space, and civil nuclear energy. They directed their teams to interlink national payment platforms for efficient cross-border payments and signed a letter of intent for a strategic defence partnership framework agreement. This will expand joint work in defence industrial collaboration, innovation, training, doctrines, special operations, and cyber-security. The agreement will not lead to India's involvement in conflicts in the region, according to Foreign Secretary Vikram Misri. The two nations condemned all forms of terrorism, including cross-border terror, and agreed to continue collaborating at the Financial Action Task Force to counter terror financing and strengthen anti-money laundering efforts. Key agreements signed during the visit include a pact between Hindustan Petroleum Corporation Limited and Abu Dhabi National Oil Company Gas for the purchase of 0.5 million tonnes per annum of LNG over 10 years. India and the UAE will also explore partnerships in advanced nuclear technologies, including the development of large nuclear reactors and small modular reactors. The two leaders welcomed the 'robust growth' in trade and economic cooperation since the Comprehensive Economic Partnership Agreement (CEPA) was concluded in 2022. They decided to double bilateral trade to $200 billion by 2032, driven by the enthusiasm of business communities on both sides. The UAE is India's third-largest trade partner and second-largest export destination, with exports worth over $36.63 billion in 2024-25. The two nations also concluded a letter of intent on investment cooperation for developing Dholera special investment region and signed a letter of intent for a joint initiative on space industry development and commercial collaboration. Modi invited the UAE's sovereign wealth funds to participate in the second National Infrastructure and Investment Fund (NIIF) scheduled for launch in 2026. The two leaders agreed to strengthen collaboration in technology and innovation, especially in artificial intelligence and emerging technologies. They also directed their teams to explore the possibility of establishing 'digital embassies' under mutually recognised sovereignty arrangements.