India–UAE Strategic Defence Partnership

During the visit of the Prime Minister of India, India and the United Arab Emirates signed the Framework for Strategic Defence Partnership, marking a major advancement in bilateral strategic relations.

Framework for Strategic Defence Partnership

The agreement aims to deepen cooperation in:

• Defence industrial collaboration

• Innovation and advanced technologies

• Joint military training

• Defence exercises

• Military education and doctrine

• Special operations

• Interoperability between armed forces

“Strategic partnerships today extend beyond defence purchases to technology, logistics, and joint capability building.”

Key Highlights of the Visit

1. Strategic Petroleum Reserves (SPR)

An MoU was signed to strengthen energy security through:

• Crude oil storage in India’s Strategic Petroleum Reserves

Locations

• Vishakhapatnam

• Chandikhol

Significance

• Enhances energy resilience

• Protects against global supply disruptions

2. Ship Repair Cluster at Vadinar, Gujarat

MoU signed between:

Cochin Shipyard Limited

and

Drydocks World

Objective

Establish:

• Ship repair facility

• Offshore fabrication cluster

at:

• Vadinar, Gujarat

Importance

• Strengthens maritime infrastructure

• Supports blue economy

• Boosts employment and industrial growth

3. MAITRI Virtual Trade Corridor

Both countries welcomed operationalization of:

• MAITRI

Full Form

Master Application for International Trade and Regulatory Interface

Purpose

• Create digital trade facilitation corridor

• Simplify customs and logistics processes

Benefits

• Faster trade clearance

• Reduced transaction costs

• Enhanced ease of doing business

“Digital trade corridors are becoming essential pillars of modern economic diplomacy.”

Significance of India–UAE Relations

1. Trade and Investment Relations

Bilateral Trade

Trade reached approximately:

• $101.25 billion in FY 2025–26

Target

• $200 billion by 2032

UAE’s Position

• UAE is India’s 7th largest investor

Important Agreements

A. CEPA (2022)

Comprehensive Economic Partnership Agreement

B. Bilateral Investment Treaty (2024)

Strengthens:

• Investment protection

• Investor confidence

INR-AED Settlement System

Promotes:

• Trade settlement in local currencies

• Reduced dependence on third-country currencies

2. Energy Cooperation

The United Arab Emirates is:

• India’s 4th largest crude oil supplier

• Largest LPG supplier

Strategic Importance

• Ensures energy security

• Supports industrial growth

SPR Participation

UAE is:

• The only foreign participant in India’s Strategic Petroleum Reserve programme

3. Strategic and Security Cooperation

I2U2 Grouping

Includes:

• India

• Israel

• UAE

• USA

Focus areas:

• Technology

• Infrastructure

• Food security

• Innovation

UAE–France–India (UFI) Trilateral

Enhances:

• Maritime security

• Strategic coordination

• Indo-Pacific cooperation

4. Maritime and Defence Cooperation

Areas include:

• Naval exercises

• Counter-terrorism cooperation

• Intelligence sharing

• Defence technology collaboration

5. People-to-People Relations

Indian Diaspora

Approximately:

• 3.5 million Indians live in UAE

making them:

• Largest expatriate community in UAE

Importance

• Strengthens cultural ties

• Supports remittance inflows

• Enhances economic connectivity

“The Indian diaspora acts as a living bridge between India and the UAE.”

Importance of UAE for India

1. Gateway to West Asia and Africa

• Strategic trade hub

2. Energy Security Partner

• Reliable hydrocarbon supplier

3. Investment Source

• Infrastructure and sovereign wealth investments

4. Maritime Importance

• Key location near Strait of Hormuz

Challenges in Bilateral Relations

1. Regional Instability

• West Asian conflicts can affect economic and energy cooperation

2. Geopolitical Competition

• Balancing ties with multiple regional actors

3. Global Energy Transition

• Long-term changes in hydrocarbon demand

Way Forward

1. Expand Defence Manufacturing Cooperation

• Joint production and innovation

2. Strengthen Digital and Technology Partnerships

• AI

• FinTech

• Cybersecurity

3. Enhance Connectivity Projects

• Ports

• Logistics

• Maritime corridors

4. Promote Renewable Energy Collaboration

• Green hydrogen

• Solar energy

5. Deepen Cultural and Educational Exchanges

• Skill development

• Academic partnerships

“India–UAE relations are evolving from transactional ties to a comprehensive strategic partnership.”

Conclusion

The signing of the Strategic Defence Partnership framework between India and the United Arab Emirates reflects the growing depth of bilateral relations across defence, trade, energy, maritime cooperation, and digital connectivity. Supported by strong economic ties, strategic convergence, and vibrant people-to-people connections, the partnership has emerged as one of the most important pillars of India’s engagement in West Asia and the broader Indo-Pacific region.