India Signs $3 Billion LNG Deal with UAE, Strengthens Trade and Defence Ties

India and the United Arab Emirates have taken a major step in deepening economic and strategic ties with the signing of a $3 billion liquefied natural gas agreement during high level talks in New Delhi.

The deal was finalized on Monday during a brief two hour visit by UAE President Sheikh Mohammed bin Zayed Al Nahyan, who met Indian Prime Minister Narendra Modi to discuss trade, energy and defence cooperation.

Under the agreement, Abu Dhabi state company ADNOC Gas will supply 0.5 million metric tons of LNG annually to Hindustan Petroleum Corporation for a period of 10 years. ADNOC Gas said the contract increases the total value of its LNG agreements with India to more than $20 billion.

“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said in a statement.

Both leaders also pledged to double bilateral trade to $200 billion within six years. India currently counts the UAE as its third largest trading partner.

In addition to economic cooperation, the two sides signed a letter of intent to work towards forming a strategic defence partnership. India’s Foreign Secretary Vikram Misri confirmed the move, calling it part of a broader effort to strengthen security cooperation.

Misri clarified that the agreement does not signal India’s involvement in regional conflicts. He said defence cooperation with countries in the region does not automatically translate into participation in their geopolitical disputes.

The announcement comes as regional alliances continue to shift. Pakistan signed a mutual defence agreement with Saudi Arabia last year and recently indicated plans for a broader defence framework involving Turkiye and Saudi Arabia. Meanwhile, Saudi Arabia and the UAE have seen differences emerge over regional policy and oil production in recent years.

Despite these dynamics, India and the UAE emphasized that their partnership is focused on stability, trade growth and long term cooperation.

With energy security, defence collaboration and economic expansion now closely linked, the latest agreements mark a significant milestone in the evolving relationship between New Delhi and Abu Dhabi.