India signs $3 billion LNG agreement with UAE, vows to double trade, as U.S. deal remains elusive

India said it plans to treble bilateral commercialized with the UAE to $200 cardinal by 2032, successful a measurement toward diversifying its partnerships arsenic a woody with the Asian country's biggest trading partner, the U.S., remains elusive.

In a whirlwind, three-hour agelong gathering precocious Monday betwixt UAE's President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi successful New Delhi, some countries' state-owned companies signed a 10-year liquefied earthy state proviso agreement.

Under the deal, the Abu Dhabi National Oil Company, which is owned by the Abu Dhabi government, volition supply LNG worthy up to $3 cardinal for a play of 10 years, starting 2028, to India's state-owned Hindustan Petroleum Corporation.

With this deal, India is present UAE's largest lawsuit of LNG and volition relationship for 20% of income by 2029, ADNOC said successful a release.

Both countries besides discussed "a wide scope of issues aimed astatine further strengthening the multifaceted India-UAE friendship," Prime Minister Modi said successful a station connected X.

"It was a productive sojourn successful presumption of outcome," said Harsh Pant, vice president for studies and overseas argumentation astatine New Delhi-based deliberation vessel Observer Research Foundation told CNBC's Inside India.

He added that India-UAE ties person evolved to a constituent wherever "regular high-level enactment astatine comparatively abbreviated announcement is going to go much common".

Trade betwixt India and UAE touched $100 cardinal successful fiscal twelvemonth 2025. Both countries signed the Comprehensive Economic Partnership Agreement successful 2022.

India is the Middle Eastern country's second-largest trading partner, accounting for astir 9% of its full commercialized and 14% of non-oil exports arsenic of September 2025, according to India Brand Equity Foundation, an inaugural backed by the commerce ministry.

UAE was India's 3rd largest trading spouse aft the U.S. and China successful fiscal twelvemonth 2025, and is location to 3.5 cardinal Indian expatriates.

Diversifying allies

India's program to grow its commercialized with UAE comes astatine a clip erstwhile the country's exports to the U.S. are nether pressure owing to the 50% tariff imposed by Washington connected Indian goods since August past year.

"Even with a commercialized woody [with the U.S.] determination is nary warrant that President Trump's "unpredictability would end," said Pant, adding that it is the crushed that India has been reaching retired to finalise commercialized woody with different countries.

Last year, pursuing the U.S. tariffs, India entered commercialized pacts with the UK and Oman, and said it volition motion a woody with New Zealand successful the archetypal half of 2026.