India-UAE Partnership: A Strategic Alliance Reshaping Global Trade and Regional Dynamics

Historic Milestone in Bilateral Trade

The India-UAE relationship, which began centuries ago with traditional trade in dates, pearls, and fish, has evolved into a vibrant and multifaceted economic partnership. The discovery of oil in the UAE in the 1960s and the country’s formation in 1971 marked a turning point, leading to rapid economic development. Over the last decade, the relationship has grown significantly, powered by strong leadership, mutual trust, and a shared vision for prosperity.

From modest beginnings of US$180 million in the 1970s, bilateral trade has now reached an impressive US$100.05 billion in FY 2024-25. The UAE has become India’s third-largest trading partner and second-largest export destination, with India’s exports to the UAE exceeding US$36.63 billion. Simultaneously, India serves as the UAE’s second-largest trading partner, with UAE exports to India valued at over US$63.42 billion. The trade portfolio encompasses a diverse range of products, including petroleum products, gems and jewelry, food and agricultural products, textiles, chemicals, and engineering goods.

Strategic Partnership and Defence Cooperation

In today’s challenging global environment, India and the UAE maintain robust strategic defence and security cooperation, including capacity-building initiatives, bilateral and multilateral exercises, joint training, and co-development of defence equipment. In 2024, landmark bilateral exercises were conducted, including Desert Cyclone (army) in January and Gulf Waves (navy) in October. Additionally, India sent its largest contingent to the UAE-hosted Desert Flag X air exercise.

Future Growth and Innovation

There remains immense potential to further deepen the India-UAE trade and investment partnership, with enhanced cooperation in critical sectors such as green energy, AI, fintech, food security and healthcare innovation. With over 4.5 million Indians in the UAE, representing the largest Indian diaspora anywhere in the world, the people-to-people connection forms the foundation of India-UAE relations. Indians have not only benefited from the UAE’s inclusive policies but have also significantly contributed to its development.

Energy Security and Sustainable Development

The partnership is actively working to diversify India’s LNG supply sources, establish reliable long-term supplier relationships, and meet growing domestic demand while supporting India’s transition to cleaner energy sources. The Ruwais facility will be the first LNG plant in the Middle East to run on clean power, making it among the lowest carbon-intensity LNG producers globally, while also employing advanced AI technologies for operational optimization.

Looking Ahead

The India-UAE partnership for 2030 represents a common vision for prosperity, innovation, and global leadership. Both countries are establishing a roadmap for closer economic partnerships by setting pressing trade targets, emphasizing healthcare and Ayurveda, and implementing CEPA.