India and UAE deepen strategic ties, Set $200 billion trade target by 2032
NEW DELHI. India and the United Arab Emirates (UAE) have agreed to significantly expand their Comprehensive Strategic Partnership, setting an ambitious target of doubling bilateral trade to $200 billion by 2032, following talks between Prime Minister Narendra Modi and UAE President Mohamed bin Zayed Al Nahyan in New Delhi on January 19.
Sheikh Mohamed’s visit – his fifth to India in the past decade and third as UAE President – underscored the steady deepening of ties between the two countries. The two leaders reviewed the entire spectrum of bilateral cooperation, noting that relations have strengthened considerably over the past decade, particularly after the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, according to a joint statement issued by the two sides following the talks.
Trade, investment and infrastructure push
Bilateral trade reached $100 billion in FY 2024–25, buoyed by CEPA, and both leaders resolved to accelerate economic engagement to meet the $200 billion goal. They directed officials to strengthen linkages between micro, small and medium enterprises (MSMEs) through initiatives such as Bharat Mart, the Virtual Trade Corridor and Bharat-Africa Setu, aimed at expanding market access across West Asia, Africa and Eurasia.
The leaders endorsed outcomes of recent high-level investment and strategic dialogue meetings and welcomed progress under the Bilateral Investment Treaty signed in 2024. Discussions were also held on a potential UAE partnership in developing the Special Investment Region at Dholera in Gujarat, envisaging infrastructure projects including an international airport, greenfield port, smart township, MRO facility and energy infrastructure.
They welcomed the establishment of DP World and First Abu Dhabi Bank branches in GIFT City, reinforcing its position as a growing international financial hub. Prime Minister Modi also invited UAE sovereign wealth funds to participate in India’s second National Investment and Infrastructure Fund (NIIF) Infrastructure Fund, slated for launch in 2026.
Energy and civil nuclear cooperation
Energy partnership featured prominently in the talks, with the leaders acknowledging the UAE’s contribution to India’s energy security. They welcomed the signing of a 10-year LNG supply agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas for 0.5 million tonnes per year of LNG starting in 2028.
The leaders also noted that India’s recently enacted Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) law has opened new avenues for civil nuclear collaboration. Both sides agreed to explore cooperation in advanced nuclear technologies, including large reactors and Small Modular Reactors (SMRs), as well as nuclear plant operations and safety.
Technology, space and digital cooperation
India and the UAE agreed to strengthen cooperation in artificial intelligence, emerging technologies and innovation. They welcomed plans to collaborate on establishing a supercomputing cluster in India and explore joint development of data centres. The two countries will also examine the feasibility of setting up “Digital Embassies” under mutually recognised sovereignty arrangements.
In the space sector, the leaders agreed to collaborate on a joint initiative to build an integrated space ecosystem, including commercialisation of space technologies, joint missions and development of high-skilled employment opportunities.
Financial integration will also be enhanced, with both sides working towards interlinking national payment platforms to enable seamless cross-border transactions.
Food security, climate and sustainability
Recognising food security as a strategic priority, the two leaders committed to strengthening cooperation in sustainable agriculture and resilient supply chains. They also reaffirmed collaboration in renewable energy and climate resilience.
Defence, security and multilateral engagement
Defence and security cooperation was reaffirmed as a core pillar of the Comprehensive Strategic Partnership. The leaders welcomed recent exchanges between service chiefs and successful bilateral military exercises, and noted progress towards concluding a strategic defence partnership.
Both sides reiterated their unequivocal condemnation of terrorism in all its forms, including cross-border terrorism, and pledged continued cooperation under the Financial Action Task Force (FATF) framework to combat terror financing and money laundering.
The two leaders also exchanged views on regional and global issues, reaffirming their shared commitment to peace, security and stability. The UAE expressed support for India’s BRICS Chairmanship in 2026, while India conveyed support for the UAE’s co-hosting of the 2026 UN Water Conference.
Both sides expressed confidence that the agreements reached would further elevate the India-UAE partnership to new heights.
