India-UAE chart a new global partnership horizon with $200 billion trade ambition

THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 19, 2026

India and the United Arab Emirates took their Comprehensive Strategic Partnership to unprecedented heights as President  Sheikh Mohamed bin Zayed Al Nahyan paid an official visit to India at the invitation of Prime Minister Narendra Modi. Marking his fifth visit to India in a decade and his third as UAE President, the visit underscored the depth, continuity and growing global significance of bilateral ties between the two nations.

During wide-ranging discussions, the two leaders reviewed the full spectrum of cooperation and expressed satisfaction at the steady strengthening of the India–UAE partnership over the past ten years. They welcomed the recent visits of the Crown Princes of Abu Dhabi and Dubai, noting that these engagements reflected generational continuity and long-term commitment to the relationship. The leaders also endorsed the outcomes of recent high-level investment, joint commission and strategic dialogue meetings, which have laid a strong foundation for future collaboration.

A major highlight of the visit was the renewed focus on economic engagement. Both sides welcomed the remarkable growth in bilateral trade since the signing of the Comprehensive Economic Partnership Agreement in 2022, with trade touching a historic US$100 billion in FY 2024-25. Reflecting strong confidence in their economic complementarities, the two leaders agreed to double bilateral trade to US$200 billion by 2032. They emphasized closer integration of Micro, Small and Medium Enterprises, calling for rapid implementation of initiatives such as Bharat Mart, the Virtual Trade Corridor and Bharat–Africa Setu to expand market access across West Asia, Africa and Eurasia.

Investment cooperation featured prominently in the discussions, with the leaders expressing satisfaction over the impact of the Bilateral Investment Treaty signed in 2024. They welcomed talks on a potential UAE partnership in developing the Special Investment Region at Dholera in Gujarat, envisaging collaboration across strategic infrastructure including an international airport, ports, railways, energy facilities and smart urban development. Prime Minister Modi also invited UAE sovereign wealth funds to participate in India’s second NIIF Infrastructure Fund, scheduled for launch in 2026. The establishment of DP World and First Abu Dhabi Bank branches in GIFT City was hailed as a milestone in strengthening financial connectivity and positioning the city as a global financial hub.

The leaders reaffirmed their shared commitment to food security, recognizing its strategic importance amid global uncertainties. They stressed the role of innovation, public-private partnerships and knowledge exchange in building resilient and sustainable agricultural systems. Cooperation was also expanded into futuristic domains, with both sides agreeing to deepen collaboration in space sciences through a joint initiative aimed at commercialisation, joint missions, start-ups and high-skilled employment.

Science, technology and innovation emerged as another pillar of the partnership, particularly in artificial intelligence and emerging technologies. The two leaders welcomed plans to collaborate on a supercomputing cluster in India, explore data centre partnerships and examine the establishment of mutually recognised Digital Embassies. President Sheikh Mohamed bin Zayed Al Nahyan expressed strong support for India hosting the AI Impact Summit in February 2026.

Energy cooperation remained a cornerstone of the relationship, with the UAE’s contribution to India’s energy security being widely acknowledged. The leaders welcomed the signing of a 10-year LNG supply agreement between HPCL and ADNOC Gas, beginning in 2028, and noted new opportunities created by India’s SHANTI law for enhanced civil nuclear cooperation. Both sides agreed to explore partnerships in advanced nuclear technologies, including large reactors and Small Modular Reactors, alongside cooperation in safety, operations and maintenance.

Cultural, educational and people-to-people ties also received renewed emphasis. Prime Minister Modi welcomed the UAE’s decision to provide artefacts for the National Maritime Heritage Complex at Lothal, while both leaders agreed to establish a ‘House of India’ in Abu Dhabi as a lasting symbol of friendship. Education was identified as a cornerstone of the partnership, building on the presence of IIT Delhi and IIM Ahmedabad campuses in the UAE, with a focus on student exchanges, innovation labs and integration of India’s DigiLocker with UAE platforms for seamless academic credential verification.

On strategic and security matters, the leaders reaffirmed mutual respect for sovereignty, territorial integrity and strategic autonomy. They welcomed the momentum in defence cooperation, including high-level military exchanges, joint exercises and the signing of a Letter of Intent towards a Strategic Defence Partnership. Both leaders unequivocally condemned terrorism in all its forms and reiterated their commitment to counter terror financing through cooperation within the FATF framework.

The two sides also exchanged views on regional and global developments, recalling the launch of the India–Middle East–Europe Economic Corridor and underscoring their shared interest in peace, stability and multilateral cooperation. The UAE conveyed full support for India’s BRICS Chairmanship in 2026, while India extended support for the UAE co-hosted UN Water Conference later in the year. Cooperation in polar science was also highlighted as a growing area contributing to climate action and global scientific efforts.

President Sheikh Mohamed bin Zayed Al Nahyan thanked Prime Minister Narendra Modi for the warm welcome and gracious hospitality, reaffirming the UAE’s commitment to an enduring partnership with India that is increasingly shaping regional and global outcomes.