India, UAE Sign $3 Billion LNG Deal; Pledge Deeper Trade and Defence Cooperation

By Admin

21 Jan, 2026

India has taken a major step towards strengthening its energy security and strategic ties in the Gulf region by signing a $3 billion liquefied natural gas (LNG) agreement with the United Arab Emirates. The deal makes the UAE India’s largest LNG supplier and marks a significant milestone in the growing partnership between the two countries.

LNG agreement strengthens energy security
The LNG purchase agreement was signed on Monday during a brief two-hour visit to New Delhi by Sheikh Mohammed bin Zayed Al Nahyan. During his visit, he held talks with Narendra Modi, focusing on energy cooperation and long-term strategic collaboration. The agreement highlights India’s focus on securing stable and diversified energy supplies amid global market uncertainties.

Ambitious trade expansion targets
Beyond energy, both leaders agreed to significantly deepen economic ties. India and the UAE have set an ambitious target to double bilateral trade to $200 billion within the next six years. This goal reflects the growing importance of the UAE as one of India’s key trading partners and a major gateway to markets across the Middle East and Africa.

Move towards a strategic defence partnership
The discussions also resulted in a commitment to establish a strategic defence partnership. This move signals closer cooperation in defence, security, and technology, while maintaining India’s independent foreign policy approach. The agreement comes at a time when regional security dynamics in the Middle East and South Asia are rapidly evolving.

Shifting regional geopolitics
The developments take place against the backdrop of changing geopolitical alignments. Pakistan, India’s long-standing rival, signed a mutual defence agreement with Saudi Arabia last year. More recently, a Pakistani minister announced that a draft trilateral defence agreement involving Pakistan, Turkey, and Saudi Arabia is under preparation. At the same time, relations between Saudi Arabia and the UAE have shown signs of strain, particularly over regional policy differences, including the Yemen conflict and negotiations on oil production levels.

India clarifies its defence stance
Addressing concerns over India’s expanding defence engagement in the region, Foreign Secretary Vikram Misri clarified that the agreement with the UAE does not indicate India’s involvement in regional conflicts. He stated that India’s defence and security cooperation with regional partners should not be interpreted as participation in local disputes.

Strengthening India’s Gulf strategy
Overall, the $3 billion LNG deal and the broader commitments on trade and defence underscore India’s strategy of building long-term partnerships in the Gulf. By securing energy supplies and enhancing strategic cooperation with the UAE, India is positioning itself to navigate regional complexities while safeguarding its economic and strategic interests.