Following PM Modi and UAE Crown Prince Al Nahyan talks, India-UAE relations reach new heights with landmark energy pacts
Indian diplomacy is soaring to new heights. As nations around the world eagerly welcome Indian businesses and forge strategic alliances, India is experiencing an unprecedented wave of global goodwill and influence not seen in years. The recent UAE-India energy pact is yet another case in point. UAE crown prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan is presently in India and had a meaningful dialogue with Prime Minister Modi. India and the United Arab Emirates (UAE) continue to strengthen their strategic partnership, with a significant boost in the energy sector, as both nations signed four major agreements aimed at deepening cooperation. The agreements span key sectors, including liquefied natural gas (LNG) trade, petroleum supplies, nuclear plant operations, and production concessions, marking a pivotal moment in the bilateral relationship. As both leaders emphasised, the pacts signal a broadening of collaboration, particularly in emerging areas such as nuclear energy, critical minerals, green hydrogen, artificial intelligence, and advanced technologies.
The signing of a long-term supply agreement for one million metric tonnes of LNG per annum between Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Ltd (IOCL) is among the most prominent developments. This is the third such deal in just over a year, reinforcing India's energy security while further consolidating ties with one of the world's leading energy producers. In addition, a groundbreaking production concession pact was signed between Urja Bharat and ADNOC for Abu Dhabi’s Onshore Block One. This marks the first instance of an Indian company holding an energy production concession in the UAE. An equally crucial development is the agreement between the Emirates Nuclear Energy Company (ENEC) and the Nuclear Power Corporation of India Ltd (NPCIL). This pact is designed to enhance collaboration in the operation and maintenance of nuclear power plants, sourcing nuclear goods from India, and fostering mutual investments in the civil nuclear domain.During their discussions, PM Modi and Crown Prince Al Nahyan acknowledged the rapid progress made under the India-UAE Comprehensive Strategic Partnership, which was first established during Modi's 2015 visit to the UAE. With about 3.5 million Indian expatriates forming the largest community in the UAE, the deepening of ties in key sectors like energy, nuclear cooperation, and trade will continue to be a cornerstone of this growing relationship. Crown Prince also paid tribute to Mahatma Gandhi at Rajghat, where he planted a sapling, continuing a tradition started by his grandfather in 1992. The crown prince’s visit is more than just about pacts. It strengthens the historic ties between the two countries. The recent implementation of the Local Currency Settlement (LCS) System, which facilitates cross-border transactions in Indian Rupees and UAE Dirhams is yet another example of growing affinity between the two countries.
