Emirates and India set $200bn bilateral trade target

• To deepen ties as geopolitical tensions rise
• Deals on space, defence, farming and energy
• Adnoc Gas signs 10-year supply pact

The UAE and India have agreed a new target to double bilateral trade to $200 billion by 2032, aiming to deepen commercial ties amid rising geopolitical tensions.

The decision was taken at a meeting between UAE President Sheikh Mohamed bin Zayed Al Nahyan and Indian prime minister Narendra Modi in New Delhi.

The UAE and India signed a comprehensive economic partnership agreement (Cepa) in May 2022, following which bilateral trade crossed $100 billion in fiscal year 2024-2025, up from $72 billion in 2022.

Several agreements in the space, defence, agriculture, trade and energy sectors were newly inked in the presence of the two leaders.  

Adnoc Gas signed a 10-year deal to supply 0.5 million metric tonnes per annum (mmtpa) of liquefied natural gas to the Indian government-owned Hindustan Petroleum Corporation Limited.

The pact is valued at between $2.5 billion and $3 billion, bringing the Abu Dhabi National Oil Company (Adnoc) subsidiary’s total contracts with Indian companies to $20 billion.

The LNG will be shipped from the Das Island liquefaction facility, which has a production capacity of 6 mmtpa.

A letter of intent was signed between the UAE investment ministry and the government of Gujarat, Modi’s home state, to develop the Dholera Special Investment Region.  

Indian foreign secretary Vikram Misri told local media that the UAE will be involved in setting up an international airport, a pilot training school, a smart urban township and projects related to railway connectivity and energy infrastructure.

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The two nations have agreed to set up a supercomputing cluster in India, he said, adding that First Abu Dhabi Bank and DP World will open offices in Gift City, Gujarat.

Earlier this week Emirati state-backed Etihad Water and Electricity (EtihadWE) said it plans a feasibility study for a proposed undersea power interconnector between the UAE and India.

In December, the Indian commerce and industry ministry said discussions between the Gulf Cooperation Council and India were underway to finalise the terms of reference for a potential free trade agreement.

Oman and India recently signed a long-delayed Cepa that aims to boost trade between the two nations.

Analysts have told AGBI that India-UAE trade ties need to diversify beyond gemstones, jewellery and oil for the relationship to thrive.

Sahitya Chaturvedi, secretary-general of the Indian Business and Professional Council, told AGBI last year there were several market segments still to explore, including value-added trade where semi-finished products such as Indian marble could be sent to the UAE, processed and re-exported with quality certifications.

Satish Kumar Sivan, India’s consul general to Dubai, also said education is ripe for expansion, with more Indian companies expected to set up in the UAE.

The UAE is home to more than 4.3 million Indian expats, accounting for around a third of the Gulf state’s population, according to India’s embassy in Abu Dhabi.