India and UAE Forge Ambitious $200 Billion Trade Goal by 2032: A New Era of Cooperation

Strengthening Ties Between India and the UAE

New Delhi: On Monday, India and the United Arab Emirates (UAE) announced an ambitious target of reaching USD 200 billion in annual trade by the year 2032. This agreement also includes a strategic defense pact and enhanced collaboration in sectors such as energy, space, and civil nuclear technology. Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan outlined a comprehensive agenda aimed at strengthening bilateral relations.

Upon Al Nahyan's arrival at Delhi airport, he was warmly greeted by Modi, and they proceeded to the Prime Minister's residence for discussions in both restricted and delegation formats.

Foreign Secretary Vikram Misri described the visit as brief yet highly productive during a media briefing following the UAE leader's three-and-a-half-hour stay, which occurred amidst rising tensions in the Middle East and trade disruptions linked to U.S. tariff policies.

The two nations agreed to explore partnerships in advanced nuclear technologies, focusing on the development of large and small modular reactors, as well as cooperation in advanced reactor systems and nuclear power plant operations.

Additionally, a long-term agreement was established for the annual supply of 0.5 million metric tonnes of Liquefied Natural Gas (LNG), with the UAE being India's second-largest LNG supplier after Qatar.

Artificial Intelligence emerged as a key area for collaboration, with plans to establish a supercomputing cluster in India in partnership with the UAE. The Gulf nation is also considering investments to enhance data center capacities in India.

The two countries set a target of USD 200 billion in annual trade by 2032, with the current two-way trade volume recorded at USD 84 billion for 2023-24.

In terms of defense, both sides committed to significantly enhancing their military ties, signing a letter of intent to work towards a strategic defense partnership framework.

Another letter of intent was signed to collaborate on developing space infrastructure, which includes establishing new launch complexes, satellite fabrication facilities, joint missions, and training centers.

A separate agreement was made to facilitate the UAE's involvement in a special investment region in Dholera, Gujarat, which aims to create an international airport, a pilot training school, an MRO facility, a greenfield port, and a smart urban township, along with projects related to railway connectivity and energy infrastructure.

The discussions between Modi and Al Nahyan also touched on new opportunities for civil nuclear cooperation following the passage of the Shanti Act in India.

An agreement on food safety was signed, promoting cooperation in the food sector and encouraging agricultural exports from India to the UAE, benefiting Indian farmers and enhancing food security in the UAE.

Both nations will also explore the establishment of a 'data embassy,' a relatively new concept aimed at setting up under mutually recognized sovereignty agreements.

The foreign secretary noted that the leaders discussed the situations in Yemen, Gaza, and Iran, although he refrained from providing specific details.

Both leaders condemned cross-border terrorism, asserting that those responsible for such acts must be held accountable.

The UAE president expressed his support for India's leadership of the BRICS grouping this year.

Since the signing of a comprehensive economic partnership agreement in 2022, there has been a notable increase in bilateral trade and people-to-people connections.

The UAE president was seen off at the airport by External Affairs Minister S. Jaishankar.