India and the United Arab Emirates have signed a major long-term energy agreement while committing to significantly deepen their economic partnership, as New Delhi accelerates efforts to diversify trade ties in a changing global landscape.
Under the agreement, the Abu Dhabi National Oil Company will supply liquefied natural gas worth up to $3 billion to India over a 10-year period starting in 2028, strengthening energy security for one of the world’s fastest-growing economies.
The LNG will be supplied to India’s state-owned Hindustan Petroleum Corporation, marking one of the most significant energy partnerships between the two countries in recent years.
With this deal, India is expected to account for nearly 20 percent of the UAE’s LNG sales by 2029, underscoring the growing strategic importance of India in the Gulf nation’s energy exports.
The agreement was finalised during high-level discussions in New Delhi, where both sides reviewed a broad range of issues aimed at strengthening what was described as a multifaceted and deepening partnership.
Trade between India and the UAE reached approximately $100 billion in the 2025 fiscal year, following the signing of a Comprehensive Economic Partnership Agreement in 2022 that boosted commerce across multiple sectors.
The UAE is among India’s largest trading partners and hosts a significant Indian expatriate population, further anchoring economic and people-to-people ties between the two countries.
The decision to expand trade comes as India faces continued pressure on exports to some major markets, prompting New Delhi to actively pursue stronger partnerships across the Middle East, Europe, and the Indo-Pacific.
Indian officials have indicated that diversifying trade and energy partnerships is now a strategic priority, particularly amid uncertainty in global trade conditions and the use of tariffs as economic tools.
In recent years, India has concluded or advanced trade agreements with several countries and signaled its intent to continue broadening its network of economic alliances.
Analysts say the LNG deal with the UAE not only strengthens India’s energy security but also reflects a broader shift toward building resilient, long-term partnerships beyond traditional trading relationships.
