In recent years, particularly after the pandemic of 2020, India and the UAE have entered into a strategic partnership that strengthened their ties beyond trade. These two nations share mutual business interests in key sectors like critical minerals, defence, and energy. The bilateral ties between India and the UAE have bolstered trade and fostered significant flow of investments. Currently, the UAE is positioned as one of the top ten investors in India. The Abu Dhabi Investment Authority (ADIA), which is among the largest sovereign wealth funds in the world, has diversified its portfolio in India. Currently, it spans sectors like aviation, telecommunications, and technology.
On the other hand, Indian firms are looking to capitalize on lucrative investment opportunities in UAE. With India on its side, the UAE has a reliable partner in both security and technology. This interdependence is maturing into a strategic partnership that extends from traditional trade and cooperation on energy to new sectors like defense, space exploration, education, and climate initiatives.
- Landmark Agreement on Civil Nuclear Cooperation
- Main Investment Avenues for India-UAE Collaboration
- The India-GCC Partnership – Boosting Regional Relations
- A Legacy of Trade Between the UAE and India
- Key Commodities: India’s Export and Import Profile
- Strengthening Trade in Local Currencies
- Conclusion
Landmark Agreement on Civil Nuclear Cooperation
The two countries reached a historic milestone when they signed an MoU for civil nuclear cooperation. The deal was signed between India’s Nuclear Power Corporation (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC). In September 2024, this deal was formally signed, and its objective is to deepen collaboration in nuclear energy. It was signed during the visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi to India.
This partnership matured on the basis of previous discussions initiated back in 2015. Both the countries committed to use nuclear energy peacefully in fields like agriculture and safety. The UAE is expanding its investments in nuclear energy, which reflects a long-term vision for its shared scientific and technological advancements.
Main Investment Avenues for India-UAE Collaboration
1. Multilateral Initiatives and Economic Integration
2. Trilateral Engagements
3. New Agreements in Energy and Logistics
In 2024, India and the UAE signed additional some other to strengthen their energy ties. These include a long-term LNG supply arrangement between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation and a strategic partnership with India’s Petroleum Reserves.
Moreover, the UAE has shown significant interest in supporting India’s food infrastructure. As part of the I2U2 mission, they have made specific investments to develop food parks in Gujarat and Madhya Pradesh.
4. The Role of the UAE in Shaping India’s Energy Sector
The India-GCC Partnership – Boosting Regional Relations
A Legacy of Trade Between the UAE and India
Trade Statistics (in US$ Million)
| Year | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
| India’s Export to UAE | 28,853.59 | 16,679.54 | 28,044.88 | 31,608.79 | 35,625.02 |
| India’s Import from UAE | 30,256.65 | 26,622.99 | 44,833.48 | 53,231.55 | 48,025.58 |
| Year | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
| Total Trade Volume | 59,110.23 | 43,302.53 | 72,878.36 | 84,840.34 | 83,650.60 |
Key Commodities: India’s Export and Import Profile
Table showing Top Exports of India to the UAE
| India’s Top Exports to UAE | 2022-23 | 2023-24 |
| Mineral Fuels & Oils | 8,681.78 | 8,236.64 |
| Precious Stones & Metals | 5,772.47 | 8,043.08 |
| Electrical Machinery | 3,650.03 | 3,538.86 |
| Nuclear Reactors & Machinery | 1,074.13 | 1,363.65 |
Table showing Top Imports of India from the UAE
| Commodity | 2022-2023 (US$ Million) | 2023-2024 (US$ Million) |
| Natural or cultured pearls, precious stones, jewelry, coins | 14,788.04 | 20,109.77 |
| Mineral fuels, mineral oils, bituminous substances | 27,704.95 | 17,628.89 |
| Plastic and articles thereof | 1,700.46 | 1,664.70 |
| Aircraft, spacecraft, and parts | 1,881.98 | 1,175.53 |
| Salt, sulfur, earths, and stone | 948.23 | 993.94 |
| Iron and steel | 1,071.15 | 674.47 |
| Tanning or dyeing extracts, pigments, paints, inks | 22.81 | 659.31 |
| Ships, boats, and floating structures | 647.37 | 639.38 |
| Aluminum and articles thereof | 509.37 | 529.79 |
| Copper and articles thereof | 454.82 | 527.59 |
| Nuclear reactors, boilers, machinery | 306.88 | 481.48 |
| Electrical machinery, sound recorders, and parts | 479.60 | 323.11 |
| Fertilizers | 376.72 | 308.33 |
