India and the United Arab Emirates (UAE) have taken a decisive step toward elevating their bilateral relationship by committing to double two-way trade to $200 billion by 2032. The announcement, made during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s recent state visit to New Delhi, signals a deepening of economic integration and a broader strategic convergence between the two nations.
The visit marked more than a routine diplomatic engagement. It reflected the growing importance both countries place on their partnership at a time of shifting global supply chains, energy uncertainties, and evolving geopolitical alignments. The discussions resulted in a comprehensive set of agreements spanning energy security, defence cooperation, space research, food systems, advanced technologies, and investment, highlighting the increasingly multi-dimensional nature of India-UAE ties.
India-UAE aim to double trade to $200 billion by 2032; ink deals on LNG, defence, and space https://t.co/1wmal97bSn
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— PMO India (@PMOIndia) January 20, 2026
CEPA as the Engine of Trade Growth
At the heart of the expanding economic relationship lies the Comprehensive Economic Partnership Agreement (CEPA), which has significantly reshaped trade and investment flows since its implementation. Briefing the media after high-level talks between President Sheikh Mohamed and Prime Minister Narendra Modi, Foreign Secretary Vikram Misri noted that the ambitious $200 billion trade target reflects the momentum generated by CEPA.
The agreement has reduced trade barriers, improved market access, and encouraged businesses on both sides to explore new sectors beyond traditional commodities. As a result, bilateral trade has become more diversified, with rising engagement in manufacturing, services, logistics, and technology-driven sectors.
The UAE has emerged as one of India’s most significant economic partners in the Gulf and the wider West Asian region. It now ranks among India’s top trading partners and plays a critical role in facilitating India’s trade with Africa and Europe.
Energy Cooperation at the Core
Energy security remains a central pillar of the India-UAE partnership. One of the most significant outcomes of the visit was the signing of a long-term Sales and Purchase Agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas.
Under this agreement, India will receive liquefied natural gas (LNG) supplies from the UAE for a 10-year period beginning in 2028. This long-term arrangement provides India with greater certainty in sourcing clean energy at a time when global gas markets are marked by price volatility and geopolitical risks.
The deal reinforces the UAE’s position as a dependable energy partner for India and complements India’s broader strategy to diversify its energy imports while transitioning toward cleaner fuel sources. With the UAE now India’s second-largest supplier of LNG, energy cooperation has evolved from transactional trade to a strategic partnership grounded in long-term planning.
Broadening the Strategic Horizon
While energy remains vital, the India-UAE relationship is no longer confined to hydrocarbons and trade alone. The two countries have agreed to expand cooperation in defence manufacturing, space exploration, food security, and advanced technologies, reflecting shared long-term priorities.
In defence, collaboration is increasingly focused on co-development and production, aligning with India’s push for self-reliance in defence manufacturing. In the space sector, growing cooperation opens avenues for satellite technology, data sharing, and joint research, with potential applications in communication, climate monitoring, and navigation.
Food security has emerged as another key area of collaboration. With India’s vast agricultural base and the UAE’s focus on ensuring reliable food supply chains, the partnership aims to strengthen agri-trade, food processing, and logistics infrastructure.
Emerging technologies such as advanced computing, digital innovation, and artificial intelligence also feature prominently in the future roadmap, positioning the partnership to benefit from the digital transformation underway in both economies.
Investment and Financial Linkages
Investment ties are expected to deepen further, driven by the UAE’s sovereign wealth funds and India’s expanding infrastructure and technology sectors. Joint investments in renewable energy, ports, logistics, urban infrastructure, and startups are likely to form the backbone of future collaboration.
The UAE’s role as a global financial hub, combined with India’s scale and growth potential, offers significant opportunities for long-term capital deployment. These investments not only support economic growth but also strengthen institutional and financial linkages between the two countries.
A Long-Term Partnership in a Changing World
The decision to target $200 billion in bilateral trade reflects confidence in the durability and complementarity of the India-UAE relationship. Strong political engagement, vibrant people-to-people connections, and expanding business networks have transformed the partnership into one of India’s most consequential relationships in the Middle East.
As both nations navigate an increasingly complex global environment, their collaboration is guided by a shared vision focused on sustainable growth, energy security, technological advancement, and strategic stability. The agreements concluded during President Sheikh Mohamed’s visit underline not only immediate economic ambitions but also a long-term commitment to shaping a resilient and future-oriented partnership.
In the years ahead, the India-UAE relationship is likely to serve as a model for how economic cooperation, strategic trust, and mutual interests can converge to create enduring partnerships in a rapidly changing world.