India and UAE Set $200 Billion Trade Target by 2032, Deepen Strategic Partnership

India and the United Arab Emirates have taken a major step to strengthen their economic and strategic ties. During delegation-level talks in New Delhi, both nations agreed to double bilateral trade to 200 billion dollars by 2032. The meeting also resulted in multiple agreements across defence, space, energy, infrastructure and cultural cooperation, reflecting the deepening India–UAE partnership.

Why in News?

India and the UAE agreed to double bilateral trade to $200 billion by 2032. Several agreements were signed during talks between Narendra Modi and Sheikh Mohamed bin Zayed Al Nahyan in New Delhi.

Trade Expansion and Economic Vision

• The decision to double bilateral trade to $200 billion by 2032 highlights the growing economic interdependence between India and the UAE.
• The UAE is one of India’s largest trading partners and a key gateway to West Asia and Africa.
• This ambitious target builds on the momentum created by recent trade facilitation measures and investment flows.
• Both countries aim to diversify trade beyond traditional sectors by strengthening cooperation in manufacturing, energy, logistics, technology and services, ensuring long-term and resilient economic growth.

Defense, Space and Energy Cooperation

• India and the UAE signed a letter of intent to conclude a framework agreement on a strategic defense partnership.
• This reflects rising trust and shared security interests. Another letter of intent focuses on joint initiatives in space infrastructure development and its commercialization.
• In the energy sector, a sales and purchase agreement was signed between HPCL India and ADNOC Gas UAE, strengthening long-term energy security and cooperation between the two countries.

Infrastructure, Technology and Nuclear Collaboration

• Both nations agreed to establish a supercomputing cluster in India, signalling deeper collaboration in advanced technology.
• The UAE will also participate in developing a Special Investment Region at Dholera in Gujarat, covering projects such as an international airport, railway connectivity, energy infrastructure, pilot training schools and smart urban townships.
• Additionally, India and the UAE agreed to promote bilateral civil nuclear cooperation, expanding collaboration in clean and reliable energy.

Finance, Culture and People-to-People Ties

• Financial cooperation was strengthened as First Abu Dhabi Bank and DP World announced plans to set up operations in GIFT City, Gujarat, enhancing India’s global financial integration.
• On the cultural front, both sides agreed to establish the House of India in Abu Dhabi.
• This cultural space will include a museum of Indian art, heritage and archaeology, reinforcing people-to-people ties and cultural diplomacy between the two nations.

Key Summary at a Glance

Question

Q. India and the UAE have set a target to double bilateral trade to what amount by 2032?

A. $150 billion
B. $175 billion
C. $200 billion
D. $250 billion