Four agreements have been signed between Indian and UAE entities in the energy sector.

11 Sep 2024

New Delhi: On Monday, India and the United Arab Emirates signed four agreements to enhance energy cooperation as Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan engaged in comprehensive talks to strengthen strategic ties.

Among the agreements are a long-term LNG supply deal between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Ltd, and another between ADNOC and India Strategic Petroleum Reserve Ltd (ISPRL). Additionally, Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Ltd (NPCIL) signed an MoU for the operation and maintenance of the Barakah Nuclear Power Plant. The fourth agreement is a production concession for Abu Dhabi onshore block-one between Urja Bharat and ADNOC. Another pact was signed between the Gujarat government and Abu Dhabi Developmental Holding Company PJSC for establishing food parks in India.

MEA spokesperson Randhir Jaiswal noted that PM Modi and Crown Prince Al Nahyan discussed various aspects of India-UAE relations, aiming to further develop their comprehensive strategic partnership. Jaiswal also highlighted that the Crown Prince, after meeting Modi, paid respects to Mahatma Gandhi at Rajghat, drawing inspiration from his teachings as they strengthen their bilateral friendship.

The Crown Prince arrived in India on Sunday. During their discussions, Modi and Al Nahyan also addressed global issues, including the situation in Gaza. The India-UAE relationship has seen significant growth in recent years, following Modi's landmark visit to the UAE in August 2015, which elevated bilateral relations to a Comprehensive Strategic Partnership. The countries signed a Comprehensive Economic Partnership Agreement (CEPA) in February 2022 and a Local Currency Settlement (LCS) System in July 2023 to facilitate transactions in Indian Rupee and AED.

With bilateral trade reaching approximately USD 85 billion in 2022-23, the UAE is a major investor in India and hosts a large Indian expatriate community. The UAE was a special invitee at the G20 during India's presidency. The India-UAE-France (UFI) trilateral was launched in February 2023, and with India's support, the UAE joined the SCO as a dialogue partner in May 2023 and BRICS as a member on January 1. Defense cooperation has also advanced, highlighted by the first India-UAE bilateral army exercise, Desert Cyclone, held in Rajasthan in January 2024.