India and UAE Forge Major Energy Partnership with Long-Term LNG Deal
India has successfully negotiated a significant long-term agreement with the United Arab Emirates for the supply of Liquefied Natural Gas. The deal promises to deliver half a million metric tons of LNG to New Delhi every year. This strategic move elevates the UAE to become India's second-largest LNG supplier, trailing only behind Qatar in this crucial energy sector.
High-Level Visit Strengthens Bilateral Ties
The landmark agreement was finalized during the official visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi. Prime Minister Narendra Modi personally welcomed the visiting dignitary at the airport, demonstrating the special rapport between the two leaders. The warm reception underscored the deep and growing relationship between India and the UAE.
Following the airport welcome, both leaders proceeded to the prime minister's residence for comprehensive discussions. The talks occurred in both restricted and delegation-level formats, covering multiple aspects of the bilateral partnership.
Foreign Secretary Highlights Substantive Outcomes
Foreign Secretary Vikram Misri briefed journalists about the visit's outcomes at a press conference. He described the visit as "short, but extremely substantive" in nature. Misri emphasized that the UAE has consistently served as a premier energy partner for India.
"Building on this comprehensive energy partnership, a long-term agreement for the supply of 0.5 million metric tons of LNG per annum was concluded during the visit," Misri stated. "The UAE is now the second-largest supplier of LNG to India."
Additional Agreements and Future Cooperation
The two nations signed several other important documents alongside the LNG deal:
- A memorandum of understanding on food safety and technical requirements that establishes sanitary and quality parameters
- This MOU will facilitate trade and promote cooperation in the food sector
- It aims to encourage exports of Indian food and agricultural products to the UAE
The food safety agreement promises to benefit Indian farmers while contributing to food security in the UAE. Discussions between the leaders also explored new areas of potential cooperation, including civil nuclear collaboration following India's passage of the Shanti Act for sustainable nuclear energy development.
Ambitious Trade Targets and Defence Cooperation
India and the UAE have set an ambitious annual trade target of $200 billion by 2032, building on the current two-way trade volume that reached $84 billion during the 2023-24 period. The nations further agreed to finalize a strategic defence pact, strengthening their security cooperation.
This comprehensive partnership demonstrates the deepening economic and strategic relationship between India and the United Arab Emirates across multiple sectors including energy, trade, agriculture, and defence.
