India and UAE Announce Historic $3 Billion Energy Compact, and Strategic Defense Partnership

In a landmark visit reflecting the deepening ties between two global hubs, Prime Minister Narendra Modi of India and President His Highness Sheikh Mohamed bin Zayed Al Nahyan of the United Arab Emirates (UAE) convened in New Delhi today to finalize a series of transformative bilateral agreements.

Energy Security

India Becomes UAE’s Top LNG Customer A cornerstone of the visit was the signing of a $3 billion Liquefied Natural Gas (LNG) agreement between Abu Dhabi’s ADNOC Gas and India’s Hindustan Petroleum Corp (HPCL).

• The Deal: ADNOC Gas will supply 0.5 million metric tons of LNG annually to India for a 10-year term.
• Economic Impact: This contract elevates India to the position of the UAE’s largest LNG customer, bringing the total value of ADNOC Gas’s active contracts with Indian firms to over $20 billion.

Strategic Defense Partnership Marking a significant shift in regional security cooperation, the two leaders witnessed the exchange of a Letter of Intent to establish a Strategic Defense Partnership. This framework aims to:

• Enhance military-to-military cooperation and joint industrial ventures in the space and defense sectors.
• Build upon the success of recent joint military exercises (December 2025) and high-level defense dialogues.
• Clarification on Neutrality: India’s Foreign Secretary, Vikram Misri, clarified that this partnership focuses on bilateral security and does not signal India’s involvement in specific regional conflicts, maintaining the nation’s policy of strategic autonomy.

Trade and Investment Goals

Following the success of the 2022 Comprehensive Economic Partnership Agreement (CEPA), which saw non-oil trade hit $100 billion, the leaders pledged to:

• Double Bilateral Trade: Set a new target of $200 billion in total trade by the year 2032.
• Expand Investment: Strengthen the UAE’s position as a top-six foreign direct investor in India, building on an existing investment base of approximately $21 billion.

Leadership Statements

Prime Minister Modi expressed his profound gratitude for the visit, noting that the “multifaceted India-UAE partnership” continues to reach new heights. President Sheikh Mohamed bin Zayed Al Nahyan reaffirmed the UAE’s commitment to India as a primary strategic ally in Asia, emphasizing cooperation in technology, energy, and space.

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The two-hour visit concludes a period of rapid diplomatic acceleration, marking the UAE President’s third visit to India since 2022 and further cementing the personal rapport between the two heads of state.