January 21, 2026 - India and the UAE have agreed to work towards doubling bilateral trade to $200bn by 2032, as New Delhi steps up efforts to diversify its economic partnerships amid pressure on exports to the US.
The commitment was announced following a brief visit to New Delhi by UAE President Mohammed bin Zayed Al Nahyan, who met Indian Prime Minister Narendra Modi on January 19. During the visit, state-owned companies from both countries signed a long-term LNG supply agreement, underscoring the growing energy dimension of the bilateral relationship.
Under the deal, Abu Dhabi National Oil Company will supply LNG worth up to $3bn over a 10 year period starting in 2028 to Hindustan Petroleum, according to official statements. ADNOC said the agreement would make India its largest LNG customer, accounting for about 20% of its LNG sales by 2029.
Trade between India and the UAE reached $100bn in f iscal year 2025, supported by the Comprehensive Economic Partnership Agreement signed in 2022. The UAE is India’s third largest trading partner after the United States and China, while India is the Gulf state’s second largest trading partner and a key destination for non-oil exports. About 3.5mn Indian nationals live in the UAE, forming one of the country’s largest expatriate communities.