India, UAE Agree To Double Bilateral Trade To $200 Billion With Finalisation Of LNG Supply Deal

India and the United Arab Emirates have agreed to deepen their partnership by doubling bilateral trade to $200 billion within six years, strengthening defence cooperation and finalising a long-term liquefied natural gas (LNG) supply deal.

The decisions were taken during talks between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi on Monday. The UAE leader was on a short two-hour visit to India.

A major outcome of the meeting was a 10-year LNG agreement between India’s Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas.

Under the deal, ADNOC Gas will supply 0.5 million metric tonnes of LNG each year to HPCL, with deliveries set to begin in 2028.

India’s Foreign Secretary Vikram Misri said the agreement would help strengthen India’s long-term energy security.

ADNOC Gas later said the contract increased the total value of its agreements with India to more than $20 billion. The company also noted that India has become its largest LNG customer.

Trade and defence cooperation were key focus areas during the talks. Both sides agreed to move towards signing a Strategic Defence Partnership Framework Agreement in the near future.

Misri said a Letter of Intent had been signed to expand defence cooperation, including defence industry collaboration, advanced technologies, training and interoperability.

He also said that closer defence ties with the UAE do not mean India will become involved in regional conflicts, adding that security cooperation with countries in the region does not automatically lead to such involvement.

On trade, a joint statement said bilateral commerce reached $100 billion in the 2024-25 financial year following the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022. Both countries agreed to double trade to $200 billion by 2032.

The two sides also agreed to strengthen cooperation between micro, small and medium enterprises.

Officials were asked to speed up projects such as Bharat Mart, the Virtual Trade Corridor and the Bharat-Africa Setu to improve market access across West Asia, Africa and Eurasia.

Several other agreements and Letters of Intent were signed during the visit.

In the space sector, India’s IN-SPACe and the UAE Space Agency agreed to work together on infrastructure development and commercial cooperation, including launch facilities, manufacturing zones, start-up support and training programmes.

In another development, the Gujarat government and the UAE Ministry of Investment agreed to explore cooperation in developing the Dholera Special Investment Region.

Plans include potential UAE involvement in an international airport, a greenfield port, rail connectivity, energy infrastructure, a smart city project and aviation facilities such as a pilot training school and an aircraft maintenance and repair centre.

The two countries also signed an agreement between India’s APEDA and the UAE Ministry of Climate Change and Environment to align food safety standards, boost Indian agricultural exports and support the UAE’s food security.

This was Sheikh Mohamed bin Zayed Al Nahyan’s third official visit to India since becoming UAE President and his fifth visit to the country in the past decade.

References: Reuters, Geo news

Source: Maritime Shipping News