India and the United Arab Emirates have agreed to a $3 billion LNG deal, marking a major milestone in India UAE Trade. The agreement aims to increase bilateral commerce to over $200 billion by 2032 while boosting cooperation in energy, infrastructure, and technology.
The deal was signed during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to New Delhi. The engagement lasted three hours and included detailed talks on trade, investments, and strategic energy projects.
Under the agreement, Hindustan Petroleum Corporation Limited will purchase 0.5 million metric tons per year of liquefied natural gas from Abu Dhabi National Oil Company Gas. Deliveries will begin in 2028 and continue for ten years, ensuring stable energy supplies for India.
The UAE also announced that First Abu Dhabi Bank and DP World will expand operations in Gujarat’s GIFT City. First Abu Dhabi Bank will support trade and investment linkages. DP World will operate shipping and logistics services to strengthen India-UAE trade.
Additionally, the governments of Gujarat and the UAE signed a Letter of Intent for the Dholera Special Investment Region. The project includes airports, urban townships, railway links, energy facilities, and a pilot training school.
Both countries agreed to expand cooperation in advanced sectors such as space, defence, and food safety. UAE’s G42 company will help establish a supercomputing cluster in India. Plans also include digital data embassies and a ‘House of India’ in Abu Dhabi.
The leaders emphasized connecting micro, small, and medium enterprises through initiatives like Bharat Mart, the Virtual Trade Corridor, and Bharat-Africa Setu. These programs aim to create new markets and stimulate India UAE Trade.
Since signing the Comprehensive Economic Partnership Agreement in 2022, bilateral trade has grown rapidly, reaching $100 billion in fiscal year 2025. The new agreements are expected to accelerate growth further.
The two nations will also collaborate in advanced nuclear energy under India’s SHANTI law. Cooperation will cover large reactors, small modular reactors, nuclear operations, and safety. They will also interlink national payment platforms for faster cross-border transactions.
The LNG deal and broader partnerships show the strategic importance of India UAE Trade. By combining energy, investment, and technology, both countries aim to strengthen long-term economic and regional ties.
