- India plans to double trade with UAE to $200B by 2032, strengthening economic diversification.
- A 10-year $3B LNG deal makes India ADNOC’s largest LNG customer.
- Strategic partnerships help India mitigate reliance on volatile U.S. trade.
India has unveiled ambitious plans to double bilateral trade with the United Arab Emirates to $200 billion by 2032, signaling a strategic push to diversify its global partnerships amid stalled negotiations with the United States.
Historic LNG Agreement Strengthens Ties
In a three-hour summit in New Delhi on Monday, UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi oversaw the signing of a decade-long liquefied natural gas (LNG) deal. Under the agreement, the Abu Dhabi National Oil Company (ADNOC) will supply LNG worth up to $3 billion to Hindustan Petroleum Corporation starting in 2028.
The deal positions India as ADNOC’s largest LNG customer, expected to account for 20% of the company’s sales by 2029. “It was a productive visit in terms of outcome,” noted Harsh Pant, vice president for studies and foreign policy at the Observer Research Foundation, highlighting the growing strategic depth of India-UAE relations.
Expanding Trade Amid Global Uncertainty
Bilateral trade between India and the UAE reached $100 billion in fiscal 2025, with India serving as the UAE’s second-largest trading partner. The 2022 Comprehensive Economic Partnership Agreement has further solidified this relationship, supporting non-oil exports that represent 14% of UAE trade.
India’s move to strengthen ties with the UAE also reflects the challenges in its trade relationship with the U.S., where tariffs imposed last year have affected exports. Analysts note that diversifying trade partners is a pragmatic step to mitigate reliance on unpredictable markets.
Strategic Diversification and Future Outlook
The India-UAE partnership also reflects broader geopolitical strategy. With 3.5 million Indian expatriates residing in the UAE and growing mutual investments, New Delhi is ensuring multiple avenues for economic growth. Future agreements with countries like the UK, Oman, and New Zealand further indicate India’s proactive approach to building resilient trade networks.
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As India eyes a $200 billion trade target with the UAE, the partnership underscores the nation’s commitment to energy security, market diversification, and long-term economic collaboration in the Middle East.
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