India, UAE set US$ 200 billion trade target, deepen nuclear and infra ties
- IBEF
- January 20, 2026
India and the UAE set an ambitious target of doubling bilateral trade to US$ 200 billion by 2032, a milestone that really reflects the deepening bond between the two nations. During the visit of UAE President Mr. Sheikh Mohamed bin Zayed Al Nahyan to New Delhi, both sides signed a dozen outcomes meant to widen the scope of cooperation across trade, energy, infrastructure, and high technology. An expanded civil nuclear cooperation is the centrepiece: They agreed to consider partnerships in large nuclear reactors, small modular reactors, and on issues relating to nuclear safety, based on the framework which India has just introduced under the SHANTI Act. In energy security, the big announcement was over a long-term LNG contract: Hindustan Petroleum Corporation Ltd will annually import 0.5 million metric tons of LNG from ADNOC Gas every year for ten years beginning in 2028 and thus contribute to India's energy requirements.
Besides trade and energy, the visit took infrastructure investment and financial cooperation a step further. India invited UAE sovereign wealth funds to participate in the second Infrastructure Fund, due to be launched in 2026. UAE players such as First Abu Dhabi Bank and DP World will invest in Gujarat International Finance Tec-City, Gujarat. A letter of intent was signed between Gujarat and the UAE Ministry of Investment on infrastructure development at the Dholera Special Investment Region, which will accommodate foreign investors with airports, rail links, smart towns, and energy infrastructure. Cooperation extended into space, food safety, supercomputing, and digital innovation, with plans for data embassies and a possible “House of India” in Abu Dhabi. Analysts say the new areas will widen the Indian-UAE relationship, balancing accelerated economic growth with strategic engagement.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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