The UAE and India have agreed a new target to double bilateral trade to $200B by 2032, reinforcing a strategic economic partnership as global geopolitical pressures continue to reshape trade flows.
The announcement followed talks in New Delhi between UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi, highlighting the growing political and commercial alignment between the two countries.
Cepa Drives Rapid Trade Growth
Momentum has accelerated since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in May 2022. Bilateral trade crossed $100B in the 2024–2025 fiscal year, up from $72B in 2022, underscoring the agreement’s impact on goods, services and investment flows.
Energy Remains Central to Ties
Energy cooperation featured prominently in the latest round of agreements.
ADNOC Gas signed a 10-year deal to supply 0.5 million metric tonnes per annum of liquefied natural gas to Hindustan Petroleum Corporation Limited. Valued at between $2.5B and $3B, the agreement brings ADNOC’s total contracted business with Indian companies to around $20B.
The LNG will be supplied from ADNOC’s Das Island liquefaction facility, which has a production capacity of 6 mmtpa.
Investment and Infrastructure Cooperation Expands
Beyond energy, the two sides signed multiple agreements spanning defence, space, agriculture and trade. A letter of intent between the UAE Ministry of Investment and the government of Gujarat outlines collaboration on the Dholera Special Investment Region.
According to Indian foreign secretary Vikram Misri, UAE involvement is expected across major projects, including an international airport, pilot training facilities, rail connectivity, energy infrastructure and a smart urban township.
Finance, Logistics and Technology Links Deepen
Financial and logistics ties are also set to strengthen, with First Abu Dhabi Bank and DP World planning to establish offices in Gujarat’s GIFT City.
The two countries have additionally agreed to set up a supercomputing cluster in India, reflecting growing cooperation in advanced technology.
Long-Term Focus on Connectivity and Trade Diversification
Energy connectivity remains part of the longer-term agenda. This week, Etihad Water and Electricity said it would undertake a feasibility study for a proposed undersea power interconnector between the UAE and India.
At the regional level, discussions are ongoing between India and the Gulf Cooperation Council to finalise the framework for a potential free trade agreement, while Oman has recently concluded its own CEPA with New Delhi.
Analysts say sustaining growth will require diversification beyond traditional sectors such as oil, jewellery and gemstones. Value-added manufacturing, education and services are increasingly seen as the next phase of the relationship.
People-to-People Ties Underpin the Partnership
The economic relationship is supported by deep social links. More than 4.3M Indian nationals live in the UAE, around a third of the country’s population, providing a strong foundation for continued trade, investment and collaboration.
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