Trade ties deepen as both nations target $200 billion by 2032

Prime Minister Modi with UAE President Sheikh Mohammed bin Zayed

Prime Minister Narendra Modi and United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan on Monday decided to double India-UAE bilateral trade to $200 billion by 2032, according to a joint statement issued after a meeting here on Monday.

The statement stated that the two leaders welcomed the strong growth in trade and economic cooperation since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022 and noted the rapid growth of bilateral trade, which reached $100 billion in the 2024-25 fiscal year. The two leaders approved the outcomes of the 13th High-Level Task Force on Investments held in September 2025 and the 16th India-UAE Joint Commission Meeting and 5th Strategic Dialogue held in December 2025.

They have directed their teams to work towards connecting Micro, Small and Medium Enterprises (MSMEs) on both sides. In this context, they called for rapid implementation of key initiatives such as ‘Bharat Mart’, ‘Virtual Trade Corridor’ and ‘Bharat-Africa Setu’ to promote MSME products in the Middle East, West Asia, Africa and Eurasia region. Leaders expressed their satisfaction that the Bilateral Investment Agreement signed in 2024 will further strengthen investment flows in multiple sectors in both countries.

They also welcomed discussions on a potential UAE partnership for the development of the Special Investment Zone in Dholera, Gujarat. The envisaged partnership will include the development of key strategic infrastructure, including an international airport, pilot training school, maintenance, repair and overhaul (MRO) facility, greenfield port, smart urban district, rail link and energy infrastructure.

Highlighting the success of the first National Investment and Infrastructure Fund (NIIF), Prime Minister Modi invited UAE sovereign wealth funds to consider participation in the second Infrastructure Fund, scheduled to be launched in 2026. The two leaders welcomed the establishment of DP World and First Abu Dhabi Bank (FAB) branches in GIFT City (Gujarat International Finance Tec-City) and strengthened its emergence as a leading international financial centre.

FAB’s GIFT City branch will serve as an important bridge connecting Indian companies and investors to its global network and expertise in the Gulf Cooperation Council and Middle East and North African markets. Both sides reiterated their strong commitment to enhance UAE-India cooperation in the field of food security, recognizing its strategic importance in ensuring sustainable supply chains and long-term resilience.

They underlined the role of public-private partnerships, innovation and knowledge exchange in advancing sustainable agriculture and increasing national food resilience in line with the national priorities of both countries. The two leaders expressed satisfaction with the strength of the bilateral energy partnership and underlined the UAE’s contribution to India’s energy security. They welcomed the signing of a 10-year LNG Supply Agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas for the delivery of 0.5 million tonnes per annum of liquefied natural gas from 2028.

“The two sides agreed to explore partnership in advanced nuclear technologies, including the development and deployment of large nuclear reactors and Small Modular Reactors (SMRs), as well as cooperation on advanced reactor systems, nuclear power plant operations and maintenance, and nuclear safety,” the statement said.

The two leaders appreciated the deepening financial sector cooperation between the two countries. They directed their teams to work on connecting national payment platforms to ensure cross-border payments are efficient, fast and affordable. The two leaders agreed to deepen cooperation in the space sector. In this context, they welcomed the understanding of cooperating on a joint initiative aimed at promoting the commercialization of the sector through the advancement of space sciences and technologies.

This initiative aims to produce an integrated space ecosystem with end-to-end infrastructure and a strong industrial base. It aims to enable joint India-UAE missions through sustainable business models, expand global business services, create high-skilled employment and start-ups, and strengthen bilateral investments.

The two leaders also decided to strengthen cooperation in the fields of science, technology and innovation, especially artificial intelligence (AI) and emerging technologies. “Welcoming the decision to collaborate on setting up a supercomputing cluster in India, they also decided to explore cooperation on setting up data centers in India,” the statement said. The statement was included.