Context
- PM Modi made a brief stopover in Abu Dhabi during his four-nation European tour. The visit occurred days after the UAE faced Iranian missile and drone attacks. Modi called for the Strait of Hormuz to remain free, open and safe, as it is vital for energy and food security.
- India strongly condemned the attacks on UAE and expressed solidarity with its leadership.
Key Agreements & Decisions
- Energy
- Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC) signed an agreement expanding UAE’s Strategic Petroleum Reserve (SPR) participation to 30 million barrels, up from 5 million barrels in 2018.
- Indian Oil Corporation Limited (IOCL) and ADNOC signed an MoU for long-term LPG supply to India.
- Both sides agreed to jointly establish strategic gas reserves in India.
- Defence
- A Framework for Strategic Defence Partnership was signed covering defence industrial collaboration, maritime security, cyber defence, and secure communications.
- UAE pledged USD 5 billion across three components:
- Abu Dhabi Investment Authority (ADIA) and National Infrastructure and Investment Fund (NIIF) will explore up to USD 1 billion in infrastructure investment.
- Emirates New Development Bank (ENBD) will invest USD 3 billion in RBL Bank of India.
- International Holding Company (IHC) will invest USD 1 billion in Sammaan Capital of India.
- Maritime & Technology
- Cochin Shipyard Limited (CSL) and Drydocks World Dubai signed an MoU to set up a Ship Repair Cluster at Vadinar, Gujarat.
- Centre for Development of Advanced Computing (CDAC) and G42 signed a partnership for establishing a supercomputing facility in India.
- MAITRI (Master Application for International Trade and Regulatory Interface) Virtual Trade Corridor was operationalised to streamline customs and cargo movement between both nations.
Impact On India
- Energy Security
- Expanding SPR participation to 30 million barrels significantly reduces India’s vulnerability to Gulf supply disruptions.
- The long-term LPG agreement secures cooking fuel supply for millions of Indian households.
- The strategic gas reserves initiative diversifies India’s energy storage beyond crude oil.
- UAE supplies approximately 11% of India’s crude oil and nearly 40% of India’s total LPG requirement.
- Economic and Investment
- UAE’s USD 5 billion investment strengthens India’s banking sector, infrastructure, and capital markets.
- ENBD’s USD 3 billion investment into RBL Bank enhances India’s private banking liquidity.
- The agreements deepen India’s Comprehensive Economic Partnership Agreement (CEPA, 2022) framework with UAE.
- Defence and Strategic
- The Strategic Defence Partnership elevates bilateral ties from trade cooperation to comprehensive security collaboration.
- Maritime security cooperation strengthens India’s strategic presence in the Arabian Sea and Indian Ocean Region (IOR).
- The cyber defence and secure communications framework addresses emerging non-traditional security threats effectively.
- Trade and Technology
- The MAITRI corridor reduces trade costs and transit time between both nations considerably.
- The supercomputing facility partnership enhances India’s technological research and development capabilities.
- The Vadinar Ship Repair Cluster positions India as a global maritime services hub under the Maritime Development Fund Scheme.
- Diplomatic
- The visit signals India’s proactive and engaged West Asia diplomacy amid the ongoing regional conflict.
- It strengthens India’s credibility as a responsible peace-oriented actor in the Gulf region.
- The visit reaffirms India’s commitment to protecting the welfare of its large diaspora community in UAE.
Conclusion
- India’s Comprehensive Strategic Partnership (2017) and CEPA (2022) with the UAE has evolved into a multi-domain strategic alliance covering energy, defence, trade and technology. PM Modi’s Abu Dhabi visit reflects India’s proactive West Asia diplomacy and its determination to safeguard national interests amid growing regional instability.
