India and the United Arab Emirates have signed a long-term deal for liquefied natural gas (LNG) supply. With this agreement, the UAE has become India’s second-largest LNG supplier, after Qatar. The deal was finalised during the official visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to New Delhi on Jan 19.
India-UAE Trade Deal for Energy
Under the agreement, 0.5 million metric tonnes of LNG would be supplied every year. The move would help India meet its growing energy needs and foster stronger trade ties. Indian Foreign Secretary Vikram Misri said the visit was short but very useful. He added that the UAE has always been a key energy partner for India. The deal also supports India’s push for cleaner fuels and long-term energy security.
President Sheikh Mohamed bin Zayed Al Nahyan was received at the airport by Prime Minister Narendra Modi. Such a welcome is rare and shows the close bond between the two leaders. After the arrival, both leaders held meetings at the Prime Minister’s residence. Talks were held in small groups and also at the delegation level. Officials from both sides discussed energy, trade, and future areas of cooperation.
Both countries also signed an agreement related to food safety and quality rules. It is focused on making it easier for Indian food and farm products to reach the UAE market. The deal would support food supply needs in the UAE by increasing Indian imports.
India and UAE have set a target to take annual trade to $200 billion by 2032. Both sides also agreed to move ahead with closer defence cooperation. Trade between the two countries stood at about $84 billion in 2023–24. The latest agreements show that the partnership is expanding beyond energy into many new areas.
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