India and the United Arab Emirates (UAE) agreed the framework for a strategic defence partnership during Prime Minister Narendra Modi’s visit to the Gulf nation, the Indian foreign ministry said, as they seek to deepen ties amid the Iran war.
India and the UAE also signed pacts on strategic petroleum reserves and supply of liquefied petroleum gas, the ministry said in a statement.
Under the strategic defence partnership, “the two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” it said.
The oil pact announced on Friday includes a potential increase of ADNOC’s crude oil storage in India for up to 30 million barrels, Abu Dhabi’s state oil firm said in a separate statement, adding the deal also explores potential crude storage in the UAE’s Fujairah as part of India’s strategic reserve.
ADNOC said that it would explore expanded LPG supply and trading opportunities with Indian Oil Corporation.
“India’s scale and growth trajectory make it one of the defining energy markets of our time. As demand accelerates alongside a rapidly expanding population, the strength of the UAE India energy partnership becomes ever more critical,” ADNOC managing director and CEO Sultan Ahmed Al Jaber said.
Ahead of Modi’s visit, Indian sources told Reuters that the prime minister was likely to discuss long-term energy supply deals with his hosts and also seek support to expand New Delhi’s strategic oil reserves.
The UAE’s decision last month to leave Organization of the Petroleum Exporting Countries (OPEC) is expected to boost its output and help importing countries such as India.
