Key takeaways from Modi–UAE President meeting: Trade, LNG, defence and space cooperation

India and the United Arab Emirates on Monday agreed to significantly deepen their bilateral partnership, setting a USD 200 billion annual trade target by 2032, as Prime Minister Narendra Modi held talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi.

The trade target marks a sharp increase from USD 84 billion in two-way trade recorded in 2023–24, officials said. The visit lasted nearly three-and-a-half hours and included restricted and delegation-level talks.

A key outcome of the meeting was the signing of a long-term agreement for the supply of 0.5 million metric tonnes of liquefied natural gas annually. The UAE is India’s second-largest LNG supplier after Qatar, reinforcing its role in India’s energy security.

The two sides also decided to expand defence cooperation, signing a letter of intent to work towards a framework agreement for a strategic defence partnership between India and the UAE.

In the civil nuclear sector, India and the UAE agreed to explore cooperation in advanced nuclear technologies, including the development of large nuclear reactors and small modular reactors, along with collaboration in advanced reactor systems and nuclear power plant operations. Discussions also covered new opportunities for nuclear cooperation in light of the passage of the Shanti Act in India.

Artificial intelligence was identified as a priority area of future collaboration. Both sides agreed to work on setting up a supercomputing cluster in India with UAE partnership, while the UAE will also look at investments to expand data centre capacity in the country.

In space cooperation, the two countries signed a letter of intent to jointly develop space infrastructure. This includes exploring new launch complexes, satellite fabrication facilities, joint space missions, a space academy, and training centres.

The UAE will also participate in developing a special investment region at Dholera in Gujarat. The initiative will cover the establishment of an international airport, a pilot training school, a maintenance, repair and overhaul facility, a greenfield port, a smart urban township, as well as projects related to railway connectivity and energy infrastructure.

A separate food safety agreement was signed to strengthen cooperation in the food sector and encourage Indian agricultural and food exports to the UAE. Officials said the agreement would benefit Indian farmers and contribute to food security in the UAE.

Both sides agreed to explore the setting up of a “data embassy”, a relatively new concept that would be examined under mutually recognised sovereignty agreements.

Regional and global issues were also discussed during the talks, including the situations in Yemen, Gaza and Iran. The two leaders unequivocally condemned cross-border terrorism, agreeing that the perpetrators, supporters and financiers of terrorism must be brought to justice.

The UAE president expressed his support for the success of India’s chairmanship of the BRICS grouping this year. Officials noted that bilateral trade and people-to-people ties have grown significantly since the two countries signed a comprehensive economic partnership agreement in 2022.

(With inputs from agencies)