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20 January 2026|The Hindu
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International RelationsEconomyScience & TechnologyNEWS

India and UAE Strengthen Defense Ties with Strategic Agreement

India and UAE sign Letter of Intent to boost defense partnership amid regional tensions.

Background Context

The India-UAE relationship has ancient roots, with trade and cultural exchanges dating back centuries. The modern diplomatic relationship was established in 1972, shortly after the formation of the UAE. However, the relationship remained largely transactional, focused on trade and remittances, until the early 21st century. A significant turning point was the 'Look West' policy adopted by India, which aimed to strengthen ties with countries in the Gulf region. This policy recognized the strategic importance of the Gulf, not only for energy security but also for economic and security cooperation. The Comprehensive Strategic Partnership agreement signed in 2017 marked a new phase, expanding cooperation beyond traditional areas to include defense, security, and counter-terrorism.

India and the United Arab Emirates (UAE) signed a “Letter of Intent for a Bilateral Strategic Defence Partnership” during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan on Monday, 20 January 2026. The two sides aim to double bilateral trade to $200 billion by 2032. Discussions also covered the situation in Gaza and Yemen. The agreement aims to create a framework for strategic defense partnership, building upon existing cooperation, rather than being a response to specific regional events. An energy deal was also signed between Hindustan Petroleum Company Ltd (HPCL) and Abu Dhabi National Oil Company Gas (ADNOC) for the purchase of 0.5 Million Metric Tonnes Per Annum (MMPTA) LNG by HPCL from ADNOC over 10 years starting from 2028. Additionally, a Letter of Intent was signed for space industry development in the UAE.

Key Facts

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Agreement: India-UAE Bilateral Strategic Defence Partnership

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Trade target: $200 billion by 2032

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LNG deal: HPCL to purchase from ADNOC

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LNG volume: 0.5 MMPTA over 10 years

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LNG start date: 2028

Latest Developments

In recent years, the India-UAE relationship has witnessed rapid diversification and deepening. The Comprehensive Economic Partnership Agreement (CEPA), implemented in 2022, is a landmark agreement aimed at boosting bilateral trade and investment. Beyond trade, there is increasing cooperation in areas such as renewable energy, technology, and space exploration. The UAE has also emerged as a significant investor in India's infrastructure sector. Looking ahead, the relationship is expected to further strengthen, with a focus on innovation, digital economy, and sustainable development. Both countries are also exploring opportunities for joint ventures in third countries, particularly in Africa. The evolving geopolitical landscape, including the Abraham Accords, has also created new opportunities for cooperation.

3 Key Concepts to Understand

This article covers important concepts like Bilateral Trade, Strategic Partnership and 1 more. Understanding these will help you answer exam questions better.

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