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UAE President Diplomatic Visit to India

UAE President Diplomatic Visit to India

General Studies Paper II: Bilateral Groupings & Agreements

Why in News? 

Recently, the President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan made an official diplomatic visit to India on 19 January 2026 at the invitation of Prime Minister Narendra Modi. Both the countries discussed how to boost trade cooperation and signed agreements to strengthen bilateral ties.

UAE President Diplomatic Visit to India

Key Agreements Signed Between India and UAE 

    • Strategic Defence Partnership Framework: India and the UAE agreed to work towards a Strategic Defence Partnership Framework Agreement to elevate bilateral security cooperation. This framework will expand collaboration in defence industrial partnerships, advanced technology, military training, cyber security, special operations, counter‑terrorism and interoperability between the Indian Armed Forces and UAE military establishments.
    • 10‑Year LNG Supply Agreement: A significant energy cooperation pact was signed between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas of the UAE, involving the supply of 0.5 million metric tonnes of liquefied natural gas (LNG) annually for 10 years beginning in 2028. This deal strengthens India’s long‑term energy security, with the UAE emerging as one of India’s largest LNG suppliers.
    • Ambitious $200 Billion Trade Target: India and the UAE agreed to set a new bilateral trade target of USD 200 billion by 2032, building on the success of the Comprehensive Economic Partnership Agreement (CEPA). This commitment encompasses boosting exports, market access, MSME linkages, and economic platforms such as Bharat Mart, Virtual Trade Corridor, and Bharat‑Africa Setu to drive trade growth across West Asia and beyond.
    • Dholera Special Investment Region Partnership: The Government of Gujarat and the UAE Ministry of Investment signed a Letter of Intent to collaborate on developing the Dholera Special Investment Region. This envisaged project includes an international airport, greenfield port, smart urban township, railway connectivity, energy infrastructure, and aviation facilities like pilot training and MRO (Maintenance, Repair & Overhaul) centres.
    • Space Cooperation and Commercialisation: India’s Indian National Space Promotion and Authorisation Centre (IN‑SPACe) and the UAE Space Agency signed a Letter of Intent to jointly build infrastructure and promote the commercialisation of space technologies. The initiative aims to foster an integrated space ecosystem, support joint missions, establish manufacturing hubs, incubators, and training centres, and boost innovation and skilled employment.
    • Civil Nuclear Collaboration: Both nations agreed to enhance civil nuclear cooperation, leveraging India’s newly enacted SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India). The agreement includes exploring partnerships in advanced nuclear technologies, large reactors, Small Modular Reactors (SMRs), nuclear safety, plant operations, and maintenance, opening new avenues for peaceful energy collaboration.
    • Technology, AI and Digital Infrastructure Initiatives: The joint statement highlighted cooperation in emerging technologies, including plans to explore the establishment of a supercomputing cluster and data centres in India. Both sides agreed to investigate the concept of “Digital Embassies” under mutually recognised sovereignty arrangements, signalling deepening ties in digital infrastructure, AI, and tech partnership.
    • Food Safety and Agricultural Trade: An MoU was signed between India’s Agricultural and Processed Food Products Export Development Authority (APEDA) and the UAE’s Ministry of Climate Change and Environment to streamline food safety standards and boost Indian agricultural exports, strengthening food supply chains and supporting the UAE’s food security goals.
  • People‑to‑People Collaboration: Both countries agreed to strengthen cultural exchanges, establish a ‘House of India’ in Abu Dhabi, and enhance student and academic partnerships. There was also focus on facilitating digitised academic recognition and expanding innovation labs and youth exchange programmes, encouraging youth engagement and cultural connectivity. 

Significance of the UAE President’s Visit to India

  • Reinforcing High‑Level Strategic Engagement: The visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan — his third official and fifth overall visit to India in a decade — underscores the continuity and depth of strategic ties between the two nations, reaffirming a partnership that has steadily evolved since the elevation to a Comprehensive Strategic Partnership in 2017. It symbolizes sustained high‑level dialogue and trust at the apex leadership level.
  • Regional Peace and Geopolitical Alignment: The visit occurred against the backdrop of escalating tensions in West Asia, including the Gaza conflict, Iran‑US frictions, and prolonged instability in Yemen and Syria. In such environment, the UAE’s choice to prioritise India underscores a strategic realignment where Abu Dhabi views New Delhi as a stabilising partner capable of balancing power dynamics. 
  • Elevating Financial and Global Market Connectivity: The visit spotlighted cooperation in the financial sector, including advancing DP World and First Abu Dhabi Bank operations in GIFT City — positioning it as an international financial hub — and future steps to further interlink national payment systems for efficient cross‑border transactions, boosting economic integration across Asia, the Gulf and Africa.

India‑UAE Relations

  • Diplomatic Ties: India and the UAE established formal diplomatic relations in 1972, later evolving into a Comprehensive Strategic Partnership driven by sustained high‑level engagements. Over decades, ties expanded from basic commercial links to a multidimensional partnership.
  • Economic Cooperation: The Comprehensive Economic Partnership Agreement (CEPA), implemented in May 2022, significantly boosted bilateral trade by eliminating tariffs on around 80 % of products and enhancing market access. Post‑CEPA, trade surged, with volumes reaching around $100 billion, making the UAE one of India’s top trading partners
  • Energy Security: The UAE is a crucial partner for India’s energy security as one of its major crude oil and LNG suppliers. Cooperation includes long‑term LNG supply deals and strategic storage collaborations, helping India diversify away from overdependence on a few sources.
  • Financial and Digital Integration: India‑UAE financial cooperation has expanded through fintech initiatives, including RuPay card acceptance, cross‑border digital payments, and efforts to establish a Rupee‑Dirham Local Currency Settlement System (LCSS), boosting efficiency in trade.
  • People‑to‑People Ties: With over 3.5 million Indians residing in the UAE, the Indian diaspora is one of the largest expatriate communities, contributing significantly to the Emirati economy and strengthening cultural linkages. 
  • Cultural Exchanges: Indian media’s popularity, and projects like the BAPS Hindu Temple in Abu Dhabi exemplify mutual respect and social integration.
  • Defence Engagement: India and the UAE participate in multilateral groupings like I2U2 and collaborate on security, maritime safety, and defence industry ties. Joint military exercises (Desert Eagle and Gulf Star-1) and coordination on regional security issues reflect deepening strategic alignment 
  • Regional Integration: The India‑Middle East‑Europe Economic Corridor (IMEEC), backed by both countries, aims to connect India with Europe and the Middle East via infrastructure, digital links, and trade facilitation, fostering broader regional integration and economic diversification.
  • Challenges: Despite robust cooperation, several challenges persist:
  • Trade Imbalances and Limited Diversification: Trade remains concentrated in a few sectors, and a rising import bill affects India’s trade surplus.
  • Non‑Tariff Barriers: Mandatory Halal certification and technical standards hinder Indian processed food exports.
  • Labour and Human Rights: The Kafala system raises migrant worker rights concerns and diplomatic balancing issues for India.

Also Read: India-Azerbaijan Relations

 

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