Why is it in the news?
→ UAE President paid an official visit to India, leading to multiple bilateral agreements across defence, energy, space, technology and trade.
→ Both sides set ambitious targets for trade expansion and launched new strategic initiatives including data embassies and LNG cooperation.
Category: IR
Important Points
- Bilateral trade reached USD 100 billion in FY 2024–25; target set to double to USD 200 billion by 2032. India invited UAE sovereign wealth funds to participate in the National Investment & Infrastructure Fund (NIIF).
- Both sides discussed UAE partnership in Gujarat’s Dholera Special Investment Region including airport, port, township and MRO facility. 10-year LNG supply agreement signed starting from 2028.
- Agreement to explore advanced nuclear cooperation including Small Modular Reactors (SMRs) following India’s SHANTI Act, 2025. Cooperation expanded in AI and emerging technologies; proposal for supercomputing cluster and data centres in India.
- Decision to establish India’s first “Data Embassy” in UAE under mutual sovereignty arrangements. Reaffirmed cooperation within FATF against terror financing; condemned terrorism including cross-border terrorism.
- Defence cooperation strengthened; Letter of Intent signed for Strategic Defence Partnership; exercises include Zayed Talwar.
- India–UAE agreed to integrate Digilocker with UAE platforms and interlink national payment systems for cross-border payments.
- UAE is India’s 4th largest crude oil source; petroleum products form 41.4% of bilateral trade.
- Local Currency Settlement System MoU (2023) promotes INR–AED trade; already used for gold, crude oil and food products.
- Indian diaspora in UAE approx. 3.5 million (about 35% of UAE population), contributing ~18% of India’s total remittances.
- UAE investments in India at USD 20–21 billion with USD 75 billion infrastructure commitment.
- BAPS Mandir in Abu Dhabi is the first traditional Hindu temple in the UAE.