India-UAE Aerospace & Defence Cooperation Takes Centre Stage

By R Chandrakanth

New Delhi. The official visit of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan to India on 19 January 2026 marked another defining moment in one of India’s most dynamic strategic partnerships. It was not just a reaffirmation of warm political ties, but a clear signal that the India–UAE relationship has matured into a multidimensional alliance spanning trade, investment, energy security, aerospace, defence, advanced technologies and people-to-people engagement.

This is Sheikh Mohamed’s fifth to India in a decade and third as UAE President, underscoring the depth of trust and strategic convergence between New Delhi and Abu Dhabi. Over the last ten years, the relationship has evolved from a transactional energy partnership into a Comprehensive Strategic Partnership with regional and global implications.

When Prime Minister Narendra Modi and President Sheikh Mohamed reviewed bilateral cooperation, both leaders noted that the past decade has been transformative. High-level political engagement has become frequent and institutionalised, with strong continuity reflected in recent visits by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.

These visits signal that the strategic alignment between India and the UAE is not personality-driven but anchored in shared long-term interests, economic diversification, regional stability, technological advancement and secure supply chains. The outcomes of recent institutional mechanisms, the 13th High-Level Task Force on Investments, the 16th Joint Commission Meeting and the 5th Strategic Dialogue, all have provided momentum to translate political intent into concrete projects.

US$200 billion ambition of bilateral trade

Perhaps the most visible marker of the partnership’s success is trade. Since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, bilateral trade has surged to US$100 billion in FY2024–25, an unprecedented milestone for both countries. Buoyed by this momentum, the two leaders have now set a bold target of doubling bilateral trade to US$200 billion by 2032. This ambition reflects confidence in CEPA’s structural impact, reduced tariffs, simplified customs procedures and improved market access.

The focus is certainly shifting beyond large corporates. Both sides have directed their teams to connect Micro, Small and Medium Enterprises (MSMEs), recognising their role in job creation and innovation. Initiatives such as Bharat Mart, the Virtual Trade Corridor and the Bharat–Africa Setu are designed to position India and the UAE as joint gateways to West Asia, Africa and Eurasia.

Aerospace: A fast-emerging pillar of cooperation

Aerospace has quietly but decisively emerged as a strategic pillar of India–UAE cooperation. India’s expanding civil aviation market, defence modernisation drive and growing space ambitions intersect well with the UAE’s focus on advanced manufacturing, MRO, pilot training and space technologies. The proposed development of an MRO facility and pilot training school at Dholera, potentially with UAE participation, is significant. As India becomes one of the world’s largest aviation markets, reducing dependence on overseas MRO hubs has become a strategic priority. UAE players bring global experience, capital and operational expertise, while India offers scale and demand.

The space sector, in particular, reflects a new level of trust. During Sheikh Mohamed’s visit, the two sides agreed to deepen cooperation through a joint initiative aimed at commercialising space technologies. The vision is ambitious: an integrated space ecosystem with end-to-end infrastructure, a strong industrial base, joint missions, global commercial services and start-up creation.

For India, this aligns with its push to open up space to private players and move beyond launch services into downstream applications. For the UAE, which has invested heavily in space science and planetary missions, the partnership offers scale, cost efficiency and access to India’s talent pool.

Defence cooperation

Defence and security cooperation has become a core pillar of the Comprehensive Strategic Partnership. The January 2026 visit reinforced this trajectory, coming on the heels of the 13th India–UAE Joint Defence Cooperation Committee (JDCC) meeting held in New Delhi in July 2025. The JDCC was notable for being held at the Secretary level for the first time, signalling the elevation of defence ties. Both sides agreed that defence cooperation must now match the pace of growth seen in trade and investment.

Military-to-military engagement has expanded significantly. Recent Army-to-Army, Navy-to-Navy and inaugural Air-to-Air Staff Talks focused on exercises, training and subject-matter exchanges. Bilateral military exercises have grown in complexity, reflecting increasing interoperability and trust.India has offered customised training programmes tailored to the UAE’s requirements, leveraging its large training infrastructure and operational experience across services.

Defence industrial collaboration

One of the most promising aspects of the relationship is defence industrial cooperation. Both sides have agreed to pursue joint manufacturing initiatives, building on successful models such as the ICOMM–CARACAL collaboration for small arms production.Discussions have extended to co-development of next-generation defence technologies, including applications of Artificial Intelligence. Opportunities in shipbuilding, particularly refits, upgrades and maintenance of common platforms, reflect India’s growing naval industrial base and the UAE’s maritime security priorities.

The signing of a Memorandum of Understanding between the Indian Coast Guard and the UAE National Guard has further strengthened cooperation in search and rescue, pollution response, anti-piracy and maritime security—critical areas in the Indian Ocean Region.

Importantly, during Sheikh Mohamed’s visit, both leaders welcomed the signing of a Letter of Intent towards concluding a Strategic Defence Partnership. This signals a move from cooperation to long-term alignment in defence planning, industry and capability development.

Energy security

Energy remains a cornerstone of the relationship. The UAE continues to be a critical contributor to India’s energy security, supplying crude oil and increasingly LNG.The signing of a 10-year LNG Supply Agreement between HPCL and ADNOC Gas—for 0.5 million tonnes per year starting in 2028, adds long-term stability to India’s gas supply portfolio.

A notable development during the visit was the discussion on civil nuclear cooperation, enabled by India’s enactment of the SHANTI law. Both sides agreed to explore partnerships in advanced nuclear technologies, including large reactors and Small Modular Reactors (SMRs), as well as cooperation in nuclear safety and plant operations. This places the India–UAE partnership at the frontier of clean and reliable baseload energy.

Tapping UAE Expertise in Logistics

Investment flows are also deepening. The Bilateral Investment Treaty signed in 2024 has added legal certainty and investor confidence, while discussions on UAE participation in the Special Investment Region at Dholera in Gujarat highlight the scale of ambition. Envisioned projects, from an international airport and MRO facility to a greenfield port, smart township and energy infrastructure, align strongly with UAE expertise in infrastructure and logistics.

The invitation to UAE sovereign wealth funds to participate in the second NIIF Infrastructure Fund, scheduled for launch in 2026, further underlines India’s push to channel long-term Gulf capital into nation-building.

Digital, AI and financial integration

The strategic alliance is increasingly future-facing. Cooperation in artificial intelligence, supercomputing and data centres reflects shared ambitions in digital transformation. The proposal to establish a supercomputing cluster in India, with UAE collaboration, and to explore ‘Digital Embassies’ under mutually recognised sovereignty arrangements, illustrates the level of strategic trust.

Financial sector cooperation is also deepening. The establishment of DP World and First Abu Dhabi Bank branches in GIFT City strengthens India’s ambition to build a global financial hub. Interlinking national payment platforms to enable fast, cost-effective cross-border payments could be transformative for trade, remittances and MSMEs.

People, culture and education

Beyond geopolitics and economics, the partnership is anchored in strong people-to-people ties. Initiatives such as the proposed ‘House of India’ in Abu Dhabi, youth exchanges and cultural cooperation reflect the soft-power dimension of the relationship. Education has become a strategic connector. The opening of IIT Delhi and IIM Ahmedabad campuses in the UAE is unprecedented and symbolic of trust in India’s academic institutions. Plans to integrate India’s DigiLocker with UAE platforms for academic credential verification will further ease mobility and opportunity.

India and the UAE see each other as partners not just bilaterally but regionally and globally. Cooperation in multilateral forums, alignment on counter-terrorism and FATF frameworks, and shared interest in initiatives such as the India–Middle East–Europe Economic Corridor (IMEC) underscore this broader vision.

The January 2026 visit of President Sheikh Mohamed bin Zayed Al Nahyan reaffirmed that India–UAE ties have moved well beyond traditional diplomacy. Aerospace, defence industrial collaboration, space cooperation and advanced technologies now sit alongside robust trade growth and energy security as defining pillars of the relationship. What distinguishes this partnership is its balance: strategic, economic and human, and its long-term orientation. As both countries navigate a rapidly changing global order, the India–UAE strategic alliance stands out as one of India’s most comprehensive and forward-looking international relationships.

As India prepares for its BRICS Chairmanship in 2026 and the UAE co-hosts the UN Water Conference later that year, the partnership is increasingly shaping global conversations.