India and UAE Aim to Expand Trade Volume to $200 Billion in Six Years

"India Becomes the Largest LNG Buyer from the UAE"

India and the United Arab Emirates (UAE) have agreed to double their trade volume to 200 billion dollars by 2032.

Narendra Modi, Prime Minister of India (left), and Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates (UAE). Photo by AP Yonhap News

According to AP and other sources on January 19 (local time), Mohammed bin Zayed Al Nahyan, President of the UAE, visited New Delhi, the capital of India, and held a summit meeting with Indian Prime Minister Narendra Modi. Vikram Misri, Deputy Minister of External Affairs of India, told reporters that the summit focused on strengthening bilateral cooperation in trade, energy, defense, and new technologies. He added that the two countries reaffirmed their comprehensive and strategic partnership, which has expanded over the past decade.

During the summit, the leaders of both countries agreed to increase their trade volume to 200 billion dollars by 2032, which is double the current level. In particular, the summit led to the signing of a liquefied natural gas (LNG) deal worth over 2.5 billion dollars. The contract was signed between ADNOC Gas, a subsidiary of the UAE’s state-run Abu Dhabi National Oil Company (ADNOC), and Hindustan Petroleum Corporation (HPCL), a state-owned Indian oil company.

India plans to import 500,000 tons of LNG annually from the UAE for ten years starting in 2028. ADNOC Gas announced that, with this contract, its total transaction volume with India has surpassed 20 billion dollars. ADNOC Gas stated, "India has become the largest LNG buyer from the UAE."

The two countries also signed a letter of intent to establish a strategic defense cooperation relationship. Deputy Minister Misri explained that the UAE has pledged to invest in developing Gujarat, Prime Minister Modi's home state, as a special region equipped with infrastructure such as airports and ports.

Since signing the Comprehensive Economic Partnership Agreement (CEPA) in 2022, India and the UAE have continued to strengthen cooperation in various sectors, including sustained trade growth.