India on Monday signed a $3 billion agreement to purchase liquefied natural gas (LNG) from the United Arab Emirates, making the Gulf nation India’s largest LNG supplier. The deal was concluded during a brief two-hour visit to New Delhi by UAE President Sheikh Mohammed bin Zayed Al Nahyan, who held talks with Prime Minister Narendra Modi.
The two leaders also agreed to significantly deepen bilateral ties, pledging to double trade between the two countries to $200 billion within six years and establish a strategic defence partnership.
The developments come amid shifting geopolitical alignments in the Middle East and South Asia. Pakistan, India’s long-standing rival, signed a mutual defence agreement with Saudi Arabia last year. More recently, a Pakistani minister announced that a draft trilateral defence agreement involving Pakistan, Turkey and Saudi Arabia is being prepared.
At the same time, relations between Saudi Arabia and the UAE—once close regional allies—have shown signs of strain, particularly over differing approaches to regional policy. Their disagreements have been visible in the Yemen conflict and in negotiations over oil production levels.
Addressing concerns about India’s expanding defence engagement in the region, Foreign Secretary Vinay Kwatra’s successor, Vikram Misri, said the agreement with the UAE does not signal India’s involvement 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,” Misri said.
The LNG agreement and broader commitments underscore India’s efforts to secure long-term energy supplies while strengthening strategic partnerships in the Gulf region.