India’s Prime Minister Narendra Modi held talks with Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to enhance strategic ties between the two countries. Following Modi’s visit to the UAE in 2015, bilateral relations were elevated to a Comprehensive Strategic Partnership.
Both countries signed a Comprehensive Economic Partnership Agreement (CEPA) in February 2022 and a Local Currency Settlement (LCS) System in July 2023 to promote the use of the Indian Rupee and AED for cross-border transactions. The two countries are among each other’s top trading partners, with a bilateral trade of about USD 85 billion in 2022-23.
The UAE is also among the top four investors in India in terms of foreign direct investments in 2022-23. The UAE has a strong Indian community and has been invited as a special invitee for G20 during India’s Presidency of the grouping. The India-UAE-France trilateral was launched in February 2023, and the UAE joined the SCO as a dialogue partner in May 2023. The India-UAE defence cooperation has seen renewed momentum in recent years.