India–UAE Pledge to Double Trade to $200 Billion

Context: India and the United Arab Emirates (UAE) have agreed to double bilateral trade to USD 200 billion by 2032 and jointly condemned terrorism in all its forms, following high-level talks.

About India–UAE Pledge to Double Trade to $200 Billion:

What it is?

• A comprehensive strategic understanding between India and the UAE to deepen cooperation across trade, defence, energy, space, infrastructure, finance, and people-to-people ties, reinforcing the India–UAE Comprehensive Strategic Partnership.

Key provisions:

• Trade and economic cooperation: Commitment to double bilateral trade to USD 200 billion by 2032. Builds on the India–UAE CEPA (2022) to expand goods, services, and investment flows.

• Commitment to double bilateral trade to USD 200 billion by 2032.

• Builds on the India–UAE CEPA (2022) to expand goods, services, and investment flows.

• Energy partnership: USD 3 billion LNG deal: ADNOC Gas to supply LNG to HPCL for 10 years. India becomes UAE’s largest LNG customer. Cooperation in civil nuclear energy and broader energy infrastructure.

• USD 3 billion LNG deal: ADNOC Gas to supply LNG to HPCL for 10 years.

• India becomes UAE’s largest LNG customer.

• Cooperation in civil nuclear energy and broader energy infrastructure.

• Defence and security: Letter of Intent to conclude a Strategic Defence Partnership. Joint condemnation of terrorism in all its forms and manifestations.

• Letter of Intent to conclude a Strategic Defence Partnership.

• Joint condemnation of terrorism in all its forms and manifestations.

• Space and technology: LoI on joint space infrastructure development and commercialisation. Agreement to establish a supercomputing cluster in India.

• LoI on joint space infrastructure development and commercialisation.

• Agreement to establish a supercomputing cluster in India.

• Investment and infrastructure: UAE participation in developing a Special Investment Region at Dholera, Gujarat. DP World and First Abu Dhabi Bank to set up operations in GIFT City.

• UAE participation in developing a Special Investment Region at Dholera, Gujarat.

• DP World and First Abu Dhabi Bank to set up operations in GIFT City.

• Culture and people-to-people ties: Establishment of the House of India in Abu Dhabi, showcasing Indian art, heritage, and archaeology.

• Establishment of the House of India in Abu Dhabi, showcasing Indian art, heritage, and archaeology.

Relevance for UPSC examination:

• GS Paper II – International Relations: The development highlights India–West Asia relations, strategic defence cooperation, counter-terrorism, and the Gulf’s role in India’s foreign policy.

• The development highlights India–West Asia relations, strategic defence cooperation, counter-terrorism, and the Gulf’s role in India’s foreign policy.

• GS Paper III – Economy & Energy Security: It is relevant for trade diversification, LNG-based energy security, infrastructure investments, and the emergence of GIFT City as an international financial hub.

• It is relevant for trade diversification, LNG-based energy security, infrastructure investments, and the emergence of GIFT City as an international financial hub.