‘We condemn attacks on UAE’, says PM Modi, signs defence cooperation pact

Why in News?

Prime Minister Narendra Modi visited the United Arab Emirates and held talks with UAE President Mohamed bin Zayed Al Nahyan during a brief stopover in Abu Dhabi. India and the UAE signed a Strategic Defence Cooperation Framework and several agreements related to energy security, strategic petroleum reserves, LNG supplies, ship-building and supercomputing cooperation amid rising instability in West Asia following the Iran conflict.

UPSC Relevance

Prelims: India-UAE relations, Strategic Petroleum Reserves, ADNOC, LNG, West Asia, energy security, Chabahar, Indian Ocean geopolitics

Mains:

GS Paper 2 – India and neighbourhood relations, bilateral agreements, West Asia diplomacy, strategic partnerships;

GS Paper 3 – energy security, defence cooperation, critical infrastructure, maritime security;

Essay – strategic autonomy, multipolarity, energy geopolitics

Background and Context

India’s engagement with the United Arab Emirates has evolved significantly over the past decade from a traditional energy-based relationship into a comprehensive strategic partnership.

The UAE is among India’s:

• Largest trading partners
• Major energy suppliers
• Important investment sources
• Key strategic partners in West Asia

The relationship has gained greater geopolitical importance because:

• Nearly 9 million Indians live and work in the Gulf region
• West Asia remains central to India’s energy imports
• Maritime trade routes through the Persian Gulf are critical for India’s economy
• Growing regional instability directly affects India’s strategic interests

The visit also occurred amid escalating tensions in West Asia following the Iran conflict and concerns regarding disruptions in global energy supply chains.

Evolution of India-UAE Relations

From Energy Partnership to Comprehensive Strategic Partnership

India-UAE relations historically revolved around:

• Oil imports
• Indian diaspora
• Remittances
• Trade links

However, since 2015, ties have expanded into:

• Defence cooperation
• Counter-terrorism
• Maritime security
• Technology
• Infrastructure
• Renewable energy
• Investment partnerships

In 2017, the relationship was elevated to a Comprehensive Strategic Partnership.

Growing Economic Engagement

The UAE is one of India’s top trading partners.

Key features include:

• Bilateral trade exceeding $80 billion in recent years
• UAE among major investors in Indian infrastructure
• Strong cooperation in ports, logistics and renewable energy

The India-UAE Comprehensive Economic Partnership Agreement further accelerated trade integration between the two countries.

Strategic Defence Cooperation Framework

Defence Cooperation Expands

The newly concluded Strategic Defence Cooperation Framework marks a major development in India-UAE security relations.

The agreement covers cooperation in:

• Defence manufacturing
• Defence technology
• Military exercises
• Maritime security
• Cybersecurity
• Special operations
• Information sharing
• Secure communications

This reflects the broadening strategic convergence between the two countries.

Importance for India

The agreement strengthens India’s:

• Defence diplomacy in West Asia
• Maritime presence in the Indian Ocean region
• Security cooperation against terrorism and piracy
• Strategic partnerships beyond traditional allies

It also aligns with India’s:

• ‘Make in India’ initiative
• Defence indigenisation goals
• Vision of becoming a defence manufacturing hub

Maritime Security Dimension

The maritime component is particularly important because:

• UAE lies near critical shipping lanes in the Persian Gulf
• India imports a majority of its crude oil through these routes
• West Asian instability can threaten energy transportation

India seeks to strengthen naval interoperability and maritime domain awareness in the Indian Ocean and Arabian Sea region.

Strategic Shift in Gulf Security Dynamics

Traditionally, the UAE military maintained close security cooperation with Pakistan.

The agreement indicates:

• Growing trust in India’s strategic role
• Diversification of Gulf security partnerships
• Changing geopolitical equations in West Asia

This also reflects India’s increasing diplomatic and strategic influence in the Gulf region.

Energy Security and Strategic Petroleum Reserves

Strategic Petroleum Reserves (SPR)

One of the most significant outcomes of the visit was the agreement on expanding India’s Strategic Petroleum Reserves.

The UAE’s Abu Dhabi National Oil Company signed agreements with Indian Strategic Petroleum Reserves Limited for:

• Storage of crude oil in India
• Cooperation on additional storage infrastructure
• Potential oil storage facilities in Fujairah, UAE

What are Strategic Petroleum Reserves?

Strategic Petroleum Reserves are emergency stockpiles of crude oil maintained by governments to:

• Ensure energy security
• Manage supply disruptions
• Stabilise domestic markets during crises

India currently maintains reserves at:

• Visakhapatnam
• Mangaluru
• Padur

Additional facilities are planned in:

• Andhra Pradesh
• Odisha

Importance for India

India imports over 85% of its crude oil requirements, making it highly vulnerable to:

• Geopolitical conflicts
• Supply disruptions
• Oil price volatility

The Iran conflict has reinforced the importance of:

• Diversified energy partnerships
• Long-term supply contracts
• Emergency reserves

LNG and LPG Cooperation

The agreement also includes:

• Long-term LNG supply arrangements
• Cooperation on gas storage infrastructure

Natural gas is increasingly important for India’s:

• Energy transition
• Industrial growth
• Cleaner fuel strategy

India aims to increase the share of natural gas in its energy mix from around 6% to 15%.

India’s Energy Security Challenges

Dependence on West Asia

West Asia remains India’s principal energy supplier.

Major suppliers include:

• Iraq
• Saudi Arabia
• UAE
• Kuwait

Instability in the region can directly affect:

• Inflation
• Trade balance
• Fiscal stability
• Industrial production

Geopolitical Vulnerabilities

Conflicts involving:

• Iran
• Israel
• United States
• Gulf monarchies

can disrupt:

• Strait of Hormuz shipping routes
• Oil supplies
• Insurance costs
• Freight rates

The Strait of Hormuz handles nearly one-fifth of global oil trade, making it strategically critical.

Need for Energy Diversification

India has increasingly pursued:

• Renewable energy expansion
• Diversified import sources
• LNG infrastructure
• Strategic reserves
• International energy partnerships

The UAE partnership fits into this broader strategy.

India’s Strategic Autonomy in West Asia

Balancing Multiple Relationships

India maintains relations simultaneously with:

• Israel
• Iran
• UAE
• Saudi Arabia
• United States

This balancing strategy reflects India’s policy of strategic autonomy.

India seeks to:

• Avoid entanglement in regional rivalries
• Protect energy interests
• Safeguard diaspora welfare
• Maintain independent foreign policy choices

Diplomatic Significance of Modi’s Statement

Prime Minister Modi’s condemnation of attacks on the UAE reflects:

• India’s concern regarding regional escalation
• Support for stability in Gulf monarchies
• Desire to prevent wider conflict affecting energy markets

At the same time, India has historically maintained relations with Iran due to:

• Chabahar Port
• Connectivity to Central Asia
• Energy cooperation

Balancing these competing relationships remains a major foreign policy challenge.

Technology and Infrastructure Cooperation

Ship-Building Cooperation

India and the UAE also signed agreements related to ship-building cooperation.

This aligns with India’s goals of:

• Expanding maritime infrastructure
• Developing domestic ship-building capacity
• Enhancing blue economy initiatives

Supercomputer and Technology Collaboration

The agreement on supercomputer hubs reflects emerging cooperation in:

• Digital infrastructure
• Artificial intelligence
• High-performance computing
• Technology partnerships

Such collaboration is increasingly important in:

• Defence systems
• Climate modelling
• Data processing
• Cybersecurity

Challenges and Concerns

Geopolitical Instability

Escalating tensions in West Asia pose risks to:

• Energy imports
• Maritime trade
• Indian diaspora safety

Dependence on Imported Energy

Despite diversification efforts, India remains heavily dependent on imported hydrocarbons.

This creates long-term strategic vulnerabilities.

Strategic Competition in West Asia

The region remains a theatre of competition involving:

• United States
• China
• Russia
• Regional powers

India must carefully navigate these rivalries without compromising strategic autonomy.

Technology Dependence

Defence and energy partnerships may still involve dependence on foreign technologies and supply chains.

Regional Security Risks

Any prolonged conflict in the Gulf could:

• Raise oil prices sharply
• Trigger inflation
• Slow economic growth globally

Way Forward

Strengthening Energy Security

India should continue:

• Expanding strategic petroleum reserves
• Diversifying energy suppliers
• Investing in renewable energy
• Increasing domestic energy resilience

Deepening Strategic Partnerships

India must strengthen strategic ties with Gulf countries while preserving balanced relations across West Asia.

Enhancing Maritime Security

India should expand:

• Naval cooperation
• Maritime domain awareness
• Anti-piracy operations
• Indian Ocean partnerships

Accelerating Clean Energy Transition

Reducing excessive hydrocarbon dependence requires:

• Solar energy expansion
• Green hydrogen development
• Natural gas infrastructure
• Electric mobility

Building Technological Capacity

Technology cooperation should prioritise:

• Indigenous manufacturing
• Cybersecurity capabilities
• AI infrastructure
• Strategic digital resilience

Protecting Indian Diaspora

Given the large Indian population in the Gulf, contingency planning for:

• Evacuation
• Labour security
• Consular support

remains essential during regional crises.

Conclusion

The India-UAE agreements signify the growing strategic depth of bilateral relations extending far beyond traditional energy trade. Defence cooperation, maritime security, technology partnerships and strategic petroleum reserves now form key pillars of the relationship.

The visit also underscores the centrality of West Asia to India’s energy security and foreign policy. As geopolitical instability intensifies in the region, India faces the complex challenge of balancing strategic autonomy, energy dependence and security partnerships. Strengthening diversified partnerships while building domestic resilience will remain essential for safeguarding India’s long-term national interests.

UPSC Practice Questions

1. Consider the following statements regarding Strategic Petroleum Reserves (SPR):

I. Strategic Petroleum Reserves are emergency stockpiles maintained to manage supply disruptions.
II. India imports more than 80% of its crude oil requirements.
III. The Strait of Hormuz is strategically important for India’s energy security.

Which of the statements given above are correct?

(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III

Correct Answer: (d) I, II and III

Explanation:
All three statements are correct. India is heavily dependent on imported crude oil, much of which passes through the Strait of Hormuz. Strategic Petroleum Reserves help mitigate supply disruptions during geopolitical crises.

2. With reference to India-UAE relations, consider the following statements:

I. India and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA) in 2022.
II. The UAE is among India’s major energy suppliers and trading partners.
III. India’s engagement with the UAE is limited only to energy cooperation.

Which of the statements given above are correct?

(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III

Correct Answer: (a) I and II only

Explanation:
Statements I and II are correct. India and the UAE signed CEPA in 2022 and maintain strong trade and energy ties.
Statement III is incorrect because bilateral relations also include defence, maritime security, technology and investment cooperation.

Mains Questions:

1. “Strategic autonomy in foreign policy is becoming increasingly difficult in a geopolitically polarised world.” Discuss in the context of India’s engagement with West Asia.
2. Examine the significance of the India-UAE strategic partnership in the context of India’s energy security and West Asia policy.