India and the United Arab Emirates have agreed on a framework for a strategic defence partnership during Prime Minister Narendra Modi’s visit to the Gulf nation. Moreover, the Indian foreign ministry said the agreement aims to deepen bilateral ties amid heightened regional instability linked to the Iran conflict.
Additionally, both sides signed agreements covering strategic petroleum reserves and the supply of liquefied petroleum gas. The ministry stated that the pacts reflect growing cooperation across energy security and strategic resource management.
Defence pact expands industrial, cyber and maritime collaboration
Under the new strategic defence partnership, both countries agreed to expand defence industrial collaboration. Moreover, the framework includes cooperation in innovation and advanced technology, training exercises, maritime security, cyber defence, secure communications, and information exchange.
Furthermore, Indian officials indicated ahead of the visit that discussions would likely focus on long-term energy supply arrangements. They also noted potential support from the UAE for expanding India’s strategic oil reserves, reinforcing energy security considerations.
In addition, the UAE’s recent decision to exit OPEC is expected to support higher output capacity, thereby benefiting importing nations such as India.
Regional instability and investment flows shape broader engagement
The ongoing conflict involving the US and Israel against Iran has disrupted global energy markets. Moreover, the closure of the Strait of Hormuz has impacted nearly 20% of global oil flows, thereby increasing volatility across shipping and energy routes.
Additionally, the situation has affected Gulf transportation and commercial activity following reported strikes across the region before a fragile ceasefire. However, both sides continue to advance economic and strategic cooperation despite these risks.
Earlier agreements included a $3 billion LNG deal signed in January, alongside a letter of intent to develop a broader defence partnership framework. Moreover, the latest statement also highlighted UAE investments worth $5 billion, referencing past transactions involving financial and industrial assets across both markets.
