Energy to defence, India, UAE deepen ties as PM Modi calls for open Hormuz

During a state visit to the UAE, India and the UAE signed multiple agreements covering energy supply, strategic petroleum reserves, defence, and maritime inf...

What Happened

During a state visit to the UAE, India and the UAE signed multiple agreements covering energy supply, strategic petroleum reserves, defence, and maritime infrastructure.
The two countries signed a Framework Agreement for Strategic Defence Partnership, moving beyond routine military exercises towards joint development and co-production of advanced defence technologies, with provisions for enhanced intelligence sharing and counter-terrorism coordination.
India secured a long-term LPG supply agreement through IOCL and ADNOC — the UAE currently meets approximately 40% of India's domestic LPG requirements.
A Memorandum of Understanding was signed for establishing a Ship Repair Cluster at Vadinar, Gujarat.
The UAE committed to invest up to $5 billion to deepen economic ties with India.
India's PM publicly called for keeping the Strait of Hormuz open, reflecting the acute energy security threat posed by ongoing conflict in West Asia.

Static Topic Bridges

India-UAE Comprehensive Economic Partnership Agreement (CEPA)

India and the UAE signed the CEPA in February 2022, which came into force in May 2022 — the first FTA between India and a Middle Eastern country, and among the fastest-concluded FTAs in India's history (negotiations completed in 88 days).

Bilateral trade reached $100 billion under the CEPA framework; leaders set a target of $200 billion by 2032.
Tariff reductions on up to 90% of goods traded between the two countries.
Key Indian exports benefiting: gems and jewellery, engineering goods, textiles, pharmaceuticals, agricultural products.
CEPA also covers services trade, investment facilitation, and intellectual property.
The two countries elevated the relationship to a "Comprehensive Strategic Partnership" in 2017.

Connection to this news: The defence and energy agreements signed during the 2026 visit layer strategic depth onto the CEPA's economic foundations, indicating a maturing all-weather partnership.

ADNOC (Abu Dhabi National Oil Company)

ADNOC is the state-owned oil company of Abu Dhabi, UAE, and one of the world's largest energy companies. It manages Abu Dhabi's oil and gas reserves, estimated at over 105 billion barrels of proven crude oil reserves (about 6% of the world's total).

ADNOC holds strategic stakes in India's petroleum infrastructure: it invested in India's Strategic Petroleum Reserve (SPR) facilities.
ADNOC has equity interest in the Mangaluru and Padur SPR caverns in India.
Cooperation between Indian Oil Corporation (IOCL) and ADNOC underpins the LPG supply agreement.
UAE is India's top crude oil supplier from the Gulf region and a major LPG exporter.

Connection to this news: The new long-term LPG supply agreement between IOCL and ADNOC further cements a critical supply-chain relationship that covers 40% of India's LPG needs.

India's Strategic Petroleum Reserves (SPR)

India's SPR programme is managed by Indian Strategic Petroleum Reserves Limited (ISPRL) under the Ministry of Petroleum and Natural Gas. It was established following recommendations of the Integrated Energy Policy (2006).

India has 3 underground SPR facilities: Vishakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT) — total ~5.33 MMT, equivalent to approximately 9.5 days of crude oil consumption.
India is expanding its SPR under Phase-II to add 6.5 MMT capacity.
The International Energy Agency (IEA) recommends 90 days of strategic reserves; India falls well short.
ADNOC's equity participation in SPR facilities represents a novel commercial model for financing strategic infrastructure.

Connection to this news: The agreements on strategic petroleum reserves between India and the UAE represent a convergence of commercial and strategic interests in securing India's energy supply chain against regional disruptions.

Strait of Hormuz and India's Energy Vulnerability

The Strait of Hormuz, located between Oman and Iran, is the world's most critical maritime chokepoint for oil transit. Approximately 20–21% of global petroleum liquids pass through it daily.

India imports approximately 90% of its crude oil; roughly 50% passes through the Strait of Hormuz.
A closure or disruption of the Strait would cause an immediate energy crisis for India, Pakistan, China, Japan, and South Korea.
India is the world's third-largest oil importer and third-largest energy consumer.
India has consistently called for freedom of navigation and unimpeded passage through international waterways, including under UNCLOS Article 38 (transit passage through international straits).

Connection to this news: India's explicit call for keeping the Strait of Hormuz open, made during the UAE visit, reflects the acute economic and energy-security stakes for India in West Asia's ongoing conflict — particularly the US-Israel-Iran war context.

India-UAE Defence Cooperation

India and the UAE have steadily expanded defence ties since the signing of the Defence Cooperation Agreement in 2003. The relationship has intensified with joint naval exercises (Zayed Talwar), air force exercises, and coast guard cooperation.

UAE is among India's top defence partners in the Gulf region.
India has promoted defence exports to the UAE, including Tejas LCA fighter jets (MoU for 30 aircraft signed in 2022) and other platforms.
The two countries share intelligence on maritime threats, piracy, and transnational terrorism.
The new Framework for Strategic Defence Partnership signed in 2026 specifically enables joint development and co-production, aligning with India's "Aatmanirbhar Bharat" (self-reliance) in defence.

Connection to this news: The 2026 framework takes the defence relationship to a qualitatively new level, matching the depth of India's defence partnerships with France, Russia, and the US.

Key Facts & Data

India-UAE CEPA: signed February 2022, in force May 2022.
Bilateral trade under CEPA: crossed $100 billion; target $200 billion by 2032.
UAE share of India's LPG requirements: approximately 40%.
UAE investment commitment in 2026: up to $5 billion.
Ship Repair Cluster MoU: Vadinar, Gujarat.
ADNOC's UAE proven crude reserves: over 105 billion barrels (~6% of global total).
India SPR capacity: ~5.33 MMT (Vishakhapatnam, Mangaluru, Padur).
India's crude oil import dependency: ~90%; ~50% passing through Strait of Hormuz.
India is the world's third-largest oil importer.
India-UAE Defence Cooperation Agreement: 2003.
Tejas LCA MoU with UAE: 2022 (30 aircraft).