India–UAE Strategic Partnership 2026

1. Prime Minister Narendra Modi visited the United Arab Emirates on 15 May 2026 to strengthen cooperation in energy, defence, technology, connectivity, investment, and skill development.

2. India and the UAE established formal diplomatic relations in 1972 with embassies later opened in Abu Dhabi and New Delhi.

3. Prime Minister Narendra Modi’s 2015 visit to the UAE was the first visit by an Indian Prime Minister to the country in 34 years.

4. Bilateral merchandise trade between India and the UAE crossed US$100 billion for the first time, reaching US$101.25 billion in FY 2025–26.

5. India and the UAE have set a target of increasing bilateral trade to US$200 billion by 2032.

6. The Bilateral Investment Treaty signed in February 2024 entered into force on 31 August 2024.

7. UAE’s cumulative Foreign Direct Investment in India reached US$25.19 billion between April 2000 and March 2025, making it the seventh-largest overseas investor in India.

8. The Local Currency Settlement system between India and the UAE allows bilateral trade and remittances to be settled in Indian Rupees and UAE Dirhams.

9. In FY 2024–25, the UAE was India’s fourth-largest source of crude oil and third-largest source of LNG imports.

10. The UAE remained the largest supplier of LPG and the second-largest export destination for India’s finished petroleum products in FY 2024–25.

11. The UAE is the only country participating in India’s Strategic Petroleum Reserve programme.

12. India and the UAE signed a strategic collaboration agreement between ISPRL and ADNOC to strengthen India’s energy security and petroleum reserves framework.

13. Cochin Shipyard Limited and Drydocks World signed an MoU to establish a ship repair cluster at Vadinar in Gujarat.

14. CDAC and UAE-based G42 signed a term sheet to establish an 8 Exaflop Super Computing Cluster to support India’s AI and high-performance computing capabilities.

15. India and the UAE adopted a Framework for Strategic Defence Partnership aimed at strengthening defence industrial cooperation, technology sharing, co-development, and regional security collaboration.

India–UAE strategic partnership is anchored in political trust, economic cooperation, and people-to-people connections. Prime Minister Narendra Modi’s visit to the UAE on 15 May 2026 further strengthens cooperation across energy security, defence, maritime infrastructure, artificial intelligence, supercomputing, investment, and skill development. The growing convergence between the two countries across strategic, technological, and economic sectors reflects a shared commitment towards long-term growth, regional stability, innovation, and future-ready development.

 

Must Know Terms :

 

 

1.ISPRLADNOCPartnership

ISPRLADNOCPartnership refers to the strategic collaboration between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company signed during Prime Minister Modi’s UAE visit in May 2026. The agreement strengthens India’s energy security by enhancing petroleum reserve cooperation, improving resilience against supply disruptions, and creating opportunities in LNG and LPG storage infrastructure development.

2.LocalCurrencySettlement

LocalCurrencySettlement is the mechanism that allows India and the UAE to conduct bilateral trade and remittances directly in Indian Rupees and UAE Dirhams. The system reduces dependence on the US dollar, lowers transaction costs, improves financial efficiency, and strengthens economic integration. It also supports faster settlements and promotes greater stability in bilateral commercial transactions.

3.StrategicPetroleumReserve

StrategicPetroleumReserve is India’s emergency crude oil storage system designed to protect the country from global energy supply disruptions and price volatility. The UAE remains the only foreign country participating in this programme. Cooperation under this framework strengthens India’s long-term energy resilience, improves storage capabilities, and supports uninterrupted access to critical hydrocarbon resources during crises.

4.IndiaUAEDefencePartnership

IndiaUAEDefencePartnership was strengthened through the Framework for Strategic Defence Partnership signed in 2026. The framework promotes defence industrial cooperation, technology sharing, co-development projects, innovation, and greater industry participation. It aims to enhance defence manufacturing capabilities, improve security collaboration, and contribute to regional stability while expanding strategic cooperation between the two countries.

5.VadinarShipRepairCluster

VadinarShipRepairCluster is a maritime infrastructure project established through cooperation between Cochin Shipyard Limited and Drydocks World. Located in Gujarat, the cluster will strengthen ship repair, maritime logistics, and coastal infrastructure capabilities. The initiative supports Make in India objectives, improves trade connectivity, enhances industrial capacity, and strengthens India’s position as an emerging global maritime hub.

6.G42SuperComputingCluster

G42SuperComputingCluster refers to the proposed 8 Exaflop supercomputing facility developed through partnership between CDAC and UAE-based G42. The project will strengthen India’s sovereign artificial intelligence capabilities, support high-performance computing infrastructure, accelerate advanced research, and contribute to the IndiaAI Mission. It represents a major step toward technological self-reliance and next-generation digital innovation.

MCQ:

1. Prime Minister Narendra Modi visited the UAE on:

A. 15 March 2026
B. 15 April 2026
C. 15 May 2026
D. 15 June 2026

2. India and the UAE established formal diplomatic relations in:

A. 1965
B. 1972
C. 1984
D. 1991

3. Prime Minister Narendra Modi’s 2015 UAE visit was the first by an Indian Prime Minister in:

A. 24 years
B. 29 years
C. 34 years
D. 40 years

4. Bilateral merchandise trade between India and the UAE reached what level in FY 2025–26?

A. US$81.25 billion
B. US$91.25 billion
C. US$101.25 billion
D. US$111.25 billion

5. India and the UAE aim to increase bilateral trade to:

A. US$150 billion by 2030
B. US$200 billion by 2032
C. US$250 billion by 2035
D. US$300 billion by 2040

6. The Bilateral Investment Treaty between India and the UAE entered into force on:

A. 31 January 2024
B. 31 August 2024
C. 31 December 2024
D. 31 March 2025

7. UAE’s cumulative FDI into India between April 2000 and March 2025 was:

A. US$15.19 billion
B. US$20.19 billion
C. US$25.19 billion
D. US$30.19 billion

8. The Local Currency Settlement system allows transactions in:

A. INR and Yuan
B. AED and Euro
C. INR and AED
D. INR and Yen

9. In FY 2024–25, the UAE was India’s:

A. Largest crude oil supplier
B. Second-largest crude oil supplier
C. Third-largest crude oil supplier
D. Fourth-largest crude oil supplier

10. The UAE was India’s largest supplier of:

A. LNG
B. LPG
C. Crude Oil
D. Coal

11. Which country is the only foreign participant in India’s Strategic Petroleum Reserve programme?

A. Saudi Arabia
B. Qatar
C. UAE
D. Kuwait

12. The strategic collaboration agreement to strengthen India’s petroleum reserves was signed between ISPRL and:

A. Saudi Aramco
B. ADNOC
C. QatarEnergy
D. Emirates NBD

13. The proposed ship repair cluster under the CSL–Drydocks World agreement will be established at:

A. Mundra
B. Kandla
C. Vadinar
D. Pipavav

14. The 8 Exaflop Super Computing Cluster will be developed through a partnership between CDAC and:

A. Mubadala
B. EDGE Group
C. ADNOC
D. G42

15. The Framework for Strategic Defence Partnership between India and the UAE focuses on:

A. Currency integration only
B. Tourism cooperation only
C. Defence industrial cooperation and technology sharing
D. Agricultural exports only