NEW DELHI: India and the United Arab Emirates (UAE) signed a $3 billion liquefied natural gas (LNG) agreement on Monday, as the leaders of both countries pledged to deepen trade and defence cooperation. The deal was concluded during a brief two-hour visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan for talks with Indian Prime Minister Narendra Modi.
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Under the agreement, Abu Dhabi-based ADNOC Gas will supply 0.5 million metric tonnes of LNG annually to India’s Hindustan Petroleum Corporation (HPCL) for 10 years. The Emirati energy company said the contract makes India its largest customer and raises the total value of its LNG deals with New Delhi to over $20 billion.
India-UAE aim to double trade to $200 billion by 2032; ink deals on LNG, defence, and space https://t.co/1wmal97bSn
via NaMo App pic.twitter.com/45oBe4RbJ3
— PMO India (@PMOIndia) January 20, 2026
Both sides also agreed to boost economic cooperation, with leaders aiming to double bilateral trade to $200bn within six years. The UAE is currently India’s third-largest trading partner, while India has expanded energy imports and investment activity in the Gulf state in recent years.
Alongside economic talks, the two countries signed a letter of intent to work toward a strategic defence partnership. Speaking to reporters, India’s Foreign Secretary Vikram Misri said the framework seeks to enhance defence cooperation but will not draw India into regional conflicts.
“Our involvement on the defence and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he noted.
Sheikh Mohamed was accompanied by a senior delegation that included the UAE’s defence and foreign ministers, underscoring the significance of the growing partnership.
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India’s push to deepen Gulf security ties comes as Pakistan has advanced its own cooperation in the region, including a defence agreement with Saudi Arabia and discussions on a potential trilateral arrangement involving Turkey and Riyadh.