Why in News?

• Against the backdrop of escalating geopolitical tensions in the West Asia/Gulf region—including conflicts in Gaza, Yemen, and unrest in Iran—India and the United Arab Emirates (UAE) have further deepened their Comprehensive Strategic Partnership.
• During the brief visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan (MBZ) to New Delhi, the two countries signed a Letter of Intent (LoI) for a bilateral Strategic Defence Partnership.

What’s in Today’s Article?

• Key Outcomes and Agreements
• Geopolitical Backdrop and What the Visit of UAE President Signify
• India-UAE Relations
• Challenges for India and Way Ahead
• Conclusion

Key Outcomes and Agreements:

• Strategic defence partnership:
  • Letter of Intent signed to work towards a framework agreement, which builds on regular bilateral military exercises, exchange of Service Chiefs, and defence-industrial cooperation.
  • India clarified that the partnership is a natural evolution, not a response to any specific conflict, and it does not imply Indian military involvement in Gulf conflicts.
• Trade and economic cooperation: Target to double bilateral trade to $200 billion by 2032, which stands at $100 billion (FY 2024–25), due to momentum driven by India–UAE Comprehensive Economic Partnership Agreement (CEPA, 2022).
• Energy cooperation:
  • 10-year LNG Supply Agreement between HPCL (Hindustan Petroleum Company Ltd) and ADNOC (Abu Dhabi National Oil Company Gas) will allow the purchase of 0.5 MMPTA LNG by HPCL from ADNOC over 10 years starting from 2028.
  • The agreement makes the UAE India’s second-largest LNG supplier, reinforcing India’s energy security.
• Civil nuclear cooperation:
  • Exploration of partnership in large nuclear reactors, Small Modular Reactors (SMRs), nuclear safety, and operations and maintenance.
  • This will be enabled by India’s SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India).
• Space cooperation: LoI between IN-SPACe (India) and UAE Space Agency to integrate space ecosystem, joint missions, commercial space services, and promote Start-ups and high-skilled employment.
• Digital and financial cooperation:
  • Proposal for Digital/Data Embassies to protect sovereign data, plan to interlink national payment platforms for faster cross-border payments.
  • Support for initiatives like Bharat Mart, Virtual Trade Corridor, and Bharat–Africa Setu.
• Counter-terrorism and financial security: Reaffirmed zero tolerance for terrorism, including cross-border terrorism. Commitment to cooperation under FATF counter-terror financing, and anti-money laundering.
• Investment and institutional cooperation: Establishment of House of India in Abu Dhabi, UAE companies (FAB, DP World) offices at GIFT City. LoI between Gujarat and UAE for Dholera Special Investment Region.

Geopolitical Backdrop and What the Visit of UAE President Signify:

• West Asia churn:
  • Growing US–Israel–Iran tensions,
  • Saudi Arabia–UAE divergence over Yemen,
  • Enhanced Saudi–Pakistan defence cooperation (2025 defence pact), and
  • Gaza conflict and US-led peace initiatives (India being invited to the ‘Board of Peace for Gaza’ by the US).
• Significance of the visit:
  • It signals India’s strategic autonomy and balanced diplomacy in West Asia, reinforcing India’s multi-alignment approach amid rivalries among Gulf partners.
  • It highlights UAE’s importance as a key energy supplier, investment partner and host of the Indian diaspora.

India-UAE Relations:

• Background: Diplomatic ties began in the 1970s, but relations transformed into a "Comprehensive Strategic Partnership" after the Indian PM's 2015 visit, accelerating cooperation in trade, investment, and strategic areas.
• Key pillars:
  • Economic and trade: UAE is India's 3rd largest trading partner and 2nd largest export destination. The CEPA aims to boost non-oil trade to $100 billion by 2030. UAE is a major investor in India (infrastructure, energy, AI, fintech).
  • Strategic and defense: Both are part of I2U2 Group, and have deep defense cooperation with joint exercises (Desert Eagle, Gulf Star-1).
  • People-to-people and cultural:
    • Indians are the largest expatriate community (3.5-4.3 million) in the UAE.
    • Cultural milestones like the BAPS Temple in Abu Dhabi and expanding Indian educational presence (IIM Ahmedabad, IIFT campuses).
• Energy security: UAE provides strategic oil reserves for India.

Challenges for India and Way Ahead:

• Risk of perception of alignment: Maintain strategic autonomy and issue-based partnerships. For example, actively leveraging CEPA and Gulf capital for Make in India and Atmanirbhar Bharat.
• Managing relations simultaneously: With UAE, Saudi Arabia, Iran, Israel, US. Deepen geo-economic engagement (trade, energy, digital, space).
• Challenges of defence cooperation: Ensuring defence cooperation does not dilute India’s non-entanglement policy. Institutionalise defence cooperation without operational entanglements.
• Regional instability and maritime insecurity: Continue diplomatic engagement to support de-escalation in West Asia.

Conclusion:

• The India–UAE Strategic Defence Partnership marks a maturation of bilateral ties from transactional engagement to a multi-dimensional strategic relationship.
• Amid volatility in West Asia, India has carefully balanced its interests by strengthening cooperation with the UAE while reaffirming its commitment to peace, stability, and strategic autonomy.
• The outcomes underscore India’s evolving role as a credible, non-aligned yet influential stakeholder in the Gulf region—an approach crucial for safeguarding its energy security, diaspora interests, and geopolitical relevance.