India and the United Arab Emirates have signed a $3 billion liquefied natural gas (LNG) supply agreement and agreed to significantly deepen trade and defence ties following high-level talks between the leaders of the two countries.
The deal was announced on Monday during a brief visit to India by UAE President Sheikh Mohammed bin Zayed Al Nahyan, who held discussions with Indian Prime Minister Narendra Modi. The two sides committed to doubling bilateral trade to $200 billion within the next six years and agreed to work toward forming a strategic defence partnership.
Under the energy agreement, Abu Dhabi National Oil Company’s gas unit, ADNOC Gas, will supply 0.5 million metric tonnes of LNG annually to India’s Hindustan Petroleum Corporation Limited (HPCL) for a period of 10 years. ADNOC Gas said the deal makes India its largest LNG customer and brings the total value of its contracts with Indian companies to more than $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said in a statement.
The UAE is currently India’s third-largest trading partner. Sheikh Mohammed was accompanied by a senior delegation that included the UAE’s defence and foreign ministers. During the visit, both countries signed a letter of intent to advance cooperation toward a strategic defence partnership, according to Indian Foreign Secretary Vikram Misri.
Misri clarified that the defence agreement does not imply India’s involvement in regional conflicts, noting that defence and security cooperation does not automatically translate into participation in geopolitical disputes.
The agreements underscore the growing strategic alignment between India and the UAE, spanning energy security, trade expansion, and defence cooperation, as both nations seek to strengthen long-term economic and geopolitical partnerships.
