India-UAE Defence Pact: India and the United Arab Emirates (UAE) executed a major strategic pivot, signing a long-term energy contract and charting a roadmap
for expanded trade during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to New Delhi. In a high-level meeting with Prime Minister Narendra Modi, the leaders committed to doubling bilateral trade to USD 200 billion (Rs 18,314 crore) by 2032, up from USD 84 billion in 2023-24. Officials described the visit as "short but extremely substantive," yielding critical agreements spanning defence, civil nuclear energy, and infrastructure development.
Energy security and nuclear cooperation
At the heart of the economic agenda was a USD 3 billion deal between Abu Dhabi’s state-owned ADNOC Gas and India’s Hindustan Petroleum Corp (HPCL). Under the 10-year contract, ADNOC will supply 0.5 million metric tons of Liquefied Natural Gas (LNG) annually, positioning India as ADNOC’s largest customer. The total value of ADNOC’s contracts with India now exceeds USD 20 billion.
The two nations also expanded civil nuclear cooperation, focusing on advanced nuclear technologies, including Small Modular Reactors (SMRs) and large reactor operations, following India’s passage of the "Shanti Act."
Defence partnership amid regional tensions
The leaders signed a letter of intent to formalise a strategic defence partnership, a key move amid rising tensions in the Middle East. This development occurs as regional dynamics shift, with India’s neighbour Pakistan recently advancing defence agreements with Saudi Arabia and Turkey.
However, Foreign Secretary Vikram Misri issued a critical clarification regarding India’s geopolitical stance. He stated that while defence ties are deepening, this engagement "does not necessarily lead to the conclusion that we will get involved... in the conflicts of the region." The leaders also discussed the situations in Gaza, Yemen, and Iran, while issuing a joint condemnation of cross-border terrorism.
Infrastructure, technology, and future sectors
The summit further broadened cooperation in high-impact sectors:
- Dholera Investment Region: UAE will participate in developing Gujarat’s Dholera Special Investment Region, including an international airport, greenfield port, MRO facilities, and a smart urban township.
- Technology and Data: Both sides agreed to collaborate on an AI supercomputing cluster and explore establishing a "data embassy" for mutually recognised sovereign data storage.
- Space Sector: A new pact will support joint efforts in launch complexes, satellite fabrication, and a space academy.
- Food Security: A separate agreement was signed to boost Indian agricultural exports and strengthen UAE food security.
(USD 1 = Rs 91.57)
(With Inputs from PTI and Reuters)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
