India, UAE sign $3b LNG deal, agree to boost trade and defence ties at leaders' meeting

Aim to double trade to $200b till 2032

India signed a $3 billion deal on Monday to buy liquefied natural gas from the United Arab Emirates, making it the UAE's top customer, as the leaders of both countries held talks to strengthen trade and defence ties.

The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al Nahyan for talks with Indian Prime Minister Narendra Modi. They pledged to double bilateral trade to $200b in six years and form a strategic defence partnership.

The presence of members of the family of His Highness Sheikh Mohamed bin Zayed Al Nahyan during the UAE’s Year of Family lends special significance to the visit. It reflects the enduring bonds of trust and people-to-people ties between India and the UAE and reinforces confidence…

— Narendra Modi (@narendramodi) January 19, 2026

Abu Dhabi state firm ADNOC Gas will supply 0.5 million metric tonnes of LNG a year to India's Hindustan Petroleum Corp for 10 years, the companies said.

ADNOC Gas said the agreement brings the total value of its contracts with India to over $20b.

"India is now the UAE's largest customer and a very important part of ADNOC Gas' LNG strategy," the company said.

The UAE is India's third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defence and foreign ministers. The two sides signed a letter of intent to work towards forming a strategic defence partnership, India's Foreign Secretary Vikram Misri told reporters.

India's arch-rival Pakistan signed a mutual defence agreement with Saudi Arabia last year, and last week, Defence Production Minister Raza Hayat Harraj announced the preparation of a three-way draft defence agreement between Pakistan, Turkiye and Saudi Arabia.

Misri said that the signing of the letter of intent with the UAE does not mean that India will get involved in regional conflicts.

"Our involvement on the defence and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region," he said.