India and the United Arab Emirates (UAE) seem to be embarking on a mutually beneficial and lucrative deal. India said it plans to double bilateral trade with the UAE to $200 billion by 2032, in a step toward diversifying its partnerships as a deal with the Asian country’s biggest trading partner, the U.S., remains elusive.
“It was a productive visit in terms of outcome,” said Harsh Pant, vice president for studies and foreign policy at New Delhi-based think tank Observer Research Foundation told CNBC’s Inside India.
In a whirlwind, three-hour long meeting late Monday between UAE’s President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi in New Delhi, both countries’ state-owned companies signed a 10-year liquefied natural gas supply agreement.
“Even with a trade deal [with the U.S.] there is no guarantee that President Trump’s ‘unpredictability’ would end,” said Pant.
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Under the deal, the Abu Dhabi National Oil Company (ADNOC), which is owned by the Abu Dhabi government, will supply LNG worth up to $3 billion for a period of 10 years, starting 2028, to India’s state-owned Hindustan Petroleum Corporation.
Bilateral trade between India and the UAE has already surpassed $100 billion, making the UAE one of India’s largest trading partners. Key areas of trade include petroleum products, precious metals, machinery, chemicals, and food items. The Comprehensive Economic Partnership Agreement (CEPA) signed in 2022 has already contributed to a significant increase in trade flows and investment between the two countries.
With this deal, India is now UAE’s largest customer of LNG and will account for 20% of sales by 2029, ADNOC said in a release.
The growing partnership between India and the UAE reflects a broader trend of nations seeking deeper economic and strategic engagement in an interconnected global landscape. Beyond trade volumes and formal agreements, such relationships are increasingly defined by long-term collaboration in technology, energy, infrastructure, and innovation. By expanding cooperation across multiple sectors, both countries position themselves to navigate global uncertainties, strengthen regional influence, and enhance economic resilience.
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This relationship also seemingly demonstrates the value of strategic diplomacy in fostering sustainable growth. Strong ties between India and the UAE create opportunities for knowledge exchange, joint ventures, and workforce development that go beyond transactional trade.
By establishing enduring economic and strategic links, both nations aim to build a framework that can withstand global market fluctuations and geopolitical challenges.
Such collaborations serve as a model for how countries can balance immediate economic gains with long-term development goals. Ultimately, the India-UAE relationship reflects a shared vision of growth, stability, and regional cooperation, laying the foundation for mutually beneficial outcomes over the coming decade.
As both nations continue to engage, there is potential for broader regional influence and increased collaboration across multiple sectors. These efforts may create new opportunities for investment, trade, and technological partnerships, while also encouraging knowledge sharing and workforce development.