India, UAE deepen ties with landmark LNG deal
India and the United Arab Emirates have signed a $3 billion liquefied natural gas (LNG) agreement and agreed to deepen cooperation across trade, defence and strategic sectors, marking a significant step forward in ties between the two countries.
The agreements were finalised during a high-level leaders’ meeting that underscored the growing convergence between New Delhi and Abu Dhabi, driven by shared economic interests, regional stability concerns and long-term energy security needs. Officials on both sides described the talks as forward-looking, with a focus on turning political goodwill into tangible outcomes.
At the centre of the discussions was the LNG deal, valued at around $3 billion, which will see the UAE supply liquefied natural gas to India under a long-term arrangement. The agreement is expected to help India diversify its energy sources and meet rising domestic demand, while giving the UAE a stable and reliable market for its gas exports.
Indian officials said the deal strengthens the country’s energy security at a time when global markets remain volatile. LNG imports are crucial for India as it seeks to reduce dependence on coal, expand cleaner fuel use, and support economic growth. The UAE, one of the world’s major energy producers, views India as a key partner in its strategy to deepen ties with fast-growing Asian economies.
Beyond energy, the two leaders agreed to step up efforts to boost bilateral trade, which has already expanded rapidly in recent years. Both sides committed to identifying new opportunities in manufacturing, logistics, digital technology, renewable energy and critical minerals. The aim is to build more resilient supply chains and encourage greater private sector collaboration.
Trade officials said the countries would work toward reducing barriers, aligning standards and encouraging investments in each other’s markets. The Comprehensive Economic Partnership Agreement (CEPA), which came into force earlier, was highlighted as a foundation that can be further leveraged to increase two-way commerce and job creation.
Defence and security cooperation featured prominently in the talks. India and the UAE agreed to enhance military-to-military engagement, including joint exercises, training programmes and exchanges between defence institutions. The leaders emphasised the importance of maritime security in the Indian Ocean region, where both nations have vital economic and strategic interests.
There was also a shared focus on counterterrorism and intelligence cooperation. Officials said both countries face common challenges from extremism and instability in the wider region, making closer coordination essential. Strengthening defence ties, they noted, reflects a growing level of trust and strategic alignment.
The meeting also touched on people-to-people connections, a pillar of the relationship that continues to grow stronger. Millions of Indians live and work in the UAE, forming one of the country’s largest expatriate communities. Leaders from both sides acknowledged the role of the Indian diaspora in deepening cultural, economic and social links.
They agreed to expand cooperation in education, skills development and innovation, with a focus on preparing young people for future industries. Cultural exchanges and tourism were also discussed as areas with significant untapped potential.
Climate change and sustainability were another key theme. India and the UAE reaffirmed their commitment to clean energy transitions and climate action, including collaboration on renewable energy projects, green hydrogen and climate-resilient infrastructure. The leaders said joint efforts in these areas could serve as a model for cooperation between developed and developing economies.
Analysts see the latest agreements as a reflection of how India–UAE ties have evolved beyond traditional diplomacy into a comprehensive strategic partnership. Energy security, trade growth and defence cooperation are increasingly intertwined, driven by shifting global dynamics and shared long-term interests.
As both countries look ahead, officials stressed that the focus will be on implementation. The $3 billion LNG deal and the broader commitments made at the meeting are expected to translate into concrete projects and closer coordination, reinforcing a partnership that has become one of India’s most important in the Gulf region.