India, UAE Set $200 Billion Trade Target by 2032 as PM Modi and UAE President Deepen Ties

India and the United Arab Emirates have agreed to significantly deepen their Comprehensive Strategic Partnership, setting an ambitious target of doubling bilateral trade to USD 200 billion by 2032.

The decision was taken during high-level talks between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi, reflecting the growing economic, strategic, and geopolitical alignment between the two countries.

India–UAE Set $200 Billion Bilateral Trade Target by 2032

India and the UAE on Monday agreed to substantially expand bilateral trade and economic cooperation as Prime Minister Narendra Modi held wide-ranging discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan during his official visit to India.

The leaders reviewed the entire spectrum of bilateral relations and expressed satisfaction over the steady strengthening of ties across political, economic, strategic, defence, and people-to-people domains.

Sheikh Mohamed bin Zayed’s India Visit: Key Context

Fifth Visit in a Decade

Sheikh Mohamed bin Zayed Al Nahyan arrived in New Delhi on January 19 at the invitation of PM Modi. This marked:

• His fifth visit to India in the past decade

• His third official visit since assuming office as President of the UAE

The visit underscored the importance both countries attach to their strategic relationship.

Trade Growth Since CEPA Agreement

CEPA Driving Rapid Expansion

The two leaders noted that bilateral trade has seen robust growth since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022.

• Bilateral trade reached USD 100 billion in FY 2024–25

• New target: USD 200 billion by 2032

Boost to MSMEs and Trade Infrastructure

Focus on Small Businesses

To further accelerate economic engagement, both sides agreed to:

• Intensify cooperation among Micro, Small and Medium Enterprises (MSMEs)

• Fast-track initiatives such as:

  • Bharat Mart

  • Virtual Trade Corridor

  • Bharat-Africa Setu

These initiatives aim to promote Indian MSME products across West Asia, Africa, and Eurasia.

Investment Cooperation and Dholera Special Investment Region

UAE Participation in Strategic Infrastructure

The leaders welcomed progress under the Bilateral Investment Treaty signed in 2024 and explored potential UAE participation in the Special Investment Region at Dholera, Gujarat.

Proposed areas of cooperation include:

• International airport

• Greenfield port

• Smart township

• Railway connectivity

• Energy infrastructure

• Aviation-related facilities

PM Modi also invited UAE sovereign wealth funds to participate in the second National Infrastructure Investment Fund (NIIF) Infrastructure Fund, expected to launch in 2026.

Growing Financial Sector Cooperation

GIFT City Gains Momentum

Both sides highlighted expanding financial cooperation, welcoming:

• Establishment of DP World and First Abu Dhabi Bank branches in GIFT City

This move strengthens India’s ambition to emerge as a global financial services hub.

Energy Partnership Remains a Key Pillar

Long-Term LNG Supply Agreement

Energy cooperation featured prominently, with both leaders welcoming:

• A 10-year LNG supply agreement between HPCL and ADNOC Gas

• Supply of 0.5 million tonnes per annum

• Agreement effective from 2028

Nuclear Energy Collaboration

The two countries also agreed to explore cooperation in advanced nuclear technologies, including:

• Large nuclear reactors

• Small Modular Reactors (SMRs)

This follows India’s enactment of the SHANTI law, aimed at facilitating civil nuclear collaboration.

Cooperation in AI, Digital Infrastructure and Innovation

Expanding Tech Collaboration

The leaders agreed to deepen cooperation in:

• Artificial Intelligence (AI)

• Supercomputing

• Data centres

They also discussed the possibility of establishing “Digital Embassies” under mutually recognised sovereignty frameworks.

Sheikh Mohamed expressed support for the AI Impact Summit, which India will host in February 2026.

Space Cooperation and Emerging Technologies

Joint Space Initiatives

Space emerged as a new focus area, with both sides agreeing to collaborate on:

• Commercialisation of space technologies

• Joint space missions

• Space start-ups

• High-skilled employment generation

Defence, Security and Counter-Terrorism Cooperation

Strategic Defence Partnership

The leaders reaffirmed strong defence and security ties and welcomed the signing of a Letter of Intent towards a Strategic Defence Partnership.

They reiterated:

• A zero-tolerance approach to terrorism

• Continued cooperation under the Financial Action Task Force (FATF) framework to counter terror financing

Cultural, Youth and People-to-People Ties

Strengthening Cultural Bonds

PM Modi welcomed the UAE’s decision to provide artefacts for the National Maritime Heritage Complex at Lothal.

Both leaders also agreed to:

• Establish a ‘House of India’ in Abu Dhabi as a symbol of friendship

• Promote youth exchanges

• Enhance educational cooperation, including university partnerships and student mobility

Regional and Global Cooperation

The leaders exchanged views on regional and global developments and reaffirmed their commitment to peace, stability, and multilateral cooperation.

• UAE supported India’s BRICS Chairmanship in 2026

• India backed the UAE’s co-hosting of the 2026 UN Water Conference

UAE President’s Closing Remarks

The UAE President thanked PM Modi for the warm welcome and hospitality, highlighting the deep mutual trust and shared vision that underpin the India–UAE strategic partnership.