India and UAE sign agreements on energy, trade, and connectivity

In a major boost to India’s energy security and bilateral relations, India and the UAE finalized several key Memoranda of Understanding (MoUs) during Sheikh Khalid bin Mohamed bin Zayed Al Nahyan’s visit to New Delhi. These agreements aim to enhance collaboration in the vital areas of nuclear energy and petroleum, further solidifying the strong partnership between the two nations. With bilateral trade reaching US$ 85 billion in 2022-23, the UAE is a major trading partner for India.

During the recent visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to New Delhi, India and the UAE signed several significant Memoranda of Understanding (MoUs) aimed at bolstering their strategic partnership, particularly in the energy sector.

One of the most notable agreements was between the Emirates Nuclear Energy Corporation (ENEC) and the Nuclear Power Corporation of India Limited (NPCIL). This MoU focuses on the operation and maintenance of the Barakah Nuclear Power Plant in the UAE. The collaboration marks a new era in nuclear energy cooperation between the two countries, with India benefiting from the expertise gained through this partnership as it seeks to expand its nuclear energy capacity to meet growing energy demands.

The Indian Ministry of External Affairs highlighted the importance of this MoU, stating that it reflects the deepening cooperation in crucial energy sectors. As India aims to diversify its energy portfolio and enhance its clean energy sources, this agreement will play a vital role in strengthening energy security for both nations.

In addition to the nuclear energy agreement, a crucial MoU was signed between the Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL). This long-term supply agreement for Liquified Natural Gas (LNG) is critical for India’s energy security, given its increasing energy needs and its commitment to transitioning to cleaner fuels. Union Petroleum Minister Hardeep Singh Puri emphasized that this deal will provide India with a stable energy supply and contribute to stability in energy markets.

The UAE and India also signed an agreement concerning India’s strategic petroleum reserves, facilitated by ADNOC and India Strategic Petroleum Reserve Limited (ISPRL). This agreement ensures that India has access to emergency crude supplies, which is crucial for mitigating potential global oil supply disruptions. As one of the world’s largest oil importers, India’s strategic positioning in the global energy market is strengthened through this partnership.

Another key agreement was the Production Concession Agreement for Abu Dhabi Onshore Block 1 between Urja Bharat and ADNOC. This deal grants India access to UAE’s hydrocarbon resources, further diversifying India’s energy sources and securing reliable energy supplies.

Beyond energy, the visit saw the signing of an MoU between the Government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ) for the development of food parks in India. This agreement highlights the expanding scope of India-UAE cooperation, addressing both energy and food security—an essential issue for both countries.

Sheikh Khalid’s visit, marking his first official trip to India, was significant for cementing the strong bilateral ties between the two nations. During the visit, Crown Prince Sheikh Khaled and Indian Prime Minister Narendra Modi held extensive talks on various areas of collaboration, including energy, investment, and connectivity. PM Modi stressed the historical bond between India and the UAE and the importance of this visit in deepening their partnership, particularly in securing their energy futures.

The discussions also covered emerging areas such as renewable energy, technology, and trade. Both leaders reaffirmed their commitment to enhancing bilateral trade and investment, noting the successful implementation of the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022, which has significantly boosted trade volumes between the two countries.

The visit also comes at a pivotal time for regional connectivity projects. Both countries are working on the India-Middle East-Europe Economic Corridor (IMEEC), which aims to enhance trade and connectivity between these regions. Given its strategic location and economic clout, the UAE is a pivotal player in this corridor, and its partnership with India will be crucial for the project’s success.

The UAE, with a bilateral trade volume of around US$ 85 billion in 2022-23, is one of India’s top trading partners, and both countries are committed to enhancing this relationship further.