India-UAE Strategic Ties: Behind Piyush Goyal's Visit To Gulf State—Bilateral Trade, Energy Security & More

PM Indira Gandhi visited UAE in 1981, and then for 34 years no Indian PM visited UAE, till PM Modi went in 2015. He has visited UAE seven times as PM, which demonstrates the importance he attaches to it. India-UAE relations have strengthened in a remarkable manner under his leadership. 

Against this background, the visit of Union Commerce Minister Piyush Goyal to UAE on 18-19 September was highly significant and was focused on  boosting investment, trade and multi-sectoral cooperation. The trip reinforced the strategic partnership between India and UAE and aimed to promote significant growth in areas like technology and investment.

The relationship between India and the UAE is a robust, multifaceted strategic partnership across economic, geopolitical, and cultural spheres. Recent agreements have solidified this bond, driving cooperation in both traditional sectors like energy and emerging fields like technology and sustainable development.  

The UAE is of critical importance to India as a top trading partner, a major source of energy, a key investment destination, and home to a large and financially significant Indian diaspora. The historically strong relationship has evolved into a comprehensive strategic partnership, reinforced by important agreements and joint initiatives.  

High-level visits like that of Commerce Minister Goyal and a robust diplomatic rapport between the leaderships of both countries has helped to elevate relations to a comprehensive strategic partnership. The Commerce Minister co-chaired the 13th meeting of the India-UAE High Level Task Force on Investments  with Sheikh Hamed bin Zayed Al Nahyan, managing director of the Abu Dhabi Investment Authority, in Abu Dhabi.

The discussions explored new frontiers for collaboration and investment in India's high-tech and emerging sectors, such as maritime, aerospace, and space technology. The UAE is the seventh-largest investor in India, with significant investment in sectors like real estate, infrastructure, and energy. 

The two countries are collaborating on major projects such as Bharat Mart, a 2.7-million-square-foot complex in Dubai's Jebel Ali Free Zone for Indian exporters. UAE-based companies like DP World have invested in Indian infrastructure, and Indian companies are securing significant contracts in the UAE.

The  Commerce Minister also co-chaired the roundtable of the UAE-India Business Council (UIBC) with Dr. Thani Al  Zeyoudi, the UAE’s minister of Foreign Trade and had an interaction with top CEOs from both nations.He spoke about the role of UIBC in driving partnerships, innovation and trust. By aligning with both governments’ priorities, the UIBC strengthens bilateral ties & fosters an enabling environment for business growth.

The Minister also highlighted opportunities for collaboration in renewable energy, shipping & logistics, infrastructure & semiconductors, paving the way for the mutual growth & prosperity of our nations. The UAE is India's third-largest trading partner and second-largest export destination.

The landmark Comprehensive Economic Partnership Agreement (CEPA), in effect since May 2022, has propelled this growth. It helped nearly double merchandise trade from $43.3 billion in FY 2020–21 to $83.7 billion in FY 2023–24. 

Non-oil trade reached nearly $38 billion in the first half of 2025. Key Indian exports include engineering goods, petroleum products, and gems and jewelry. India's imports from the UAE include petroleum, precious stones, and petroleum products.India and the UAE have set an ambitious target of reaching $100 billion in non-oil, non-precious metals trade over the next three years. 

India and the UAE are moving closer to implementing a system for settling bilateral trade in their respective local currencies and integrating their payment systems. The move aims to reduce reliance on the US dollar, lower transaction costs for businesses, and strengthen economic ties under the India-UAE Comprehensive Economic Partnership (CEPA). Both nations are committed to finalizing these initiatives in the near future. 

The UAE is a critical partner for India's energy security, supplying a significant portion of its crude oil and petroleum product needs. Joint ventures in renewable energy, including green hydrogen and solar projects, also bolster climate cooperation. It is India's fourth-largest supplier of crude oil and a key source for liquefied natural gas (LNG) and LPG. 

The UAE is the only country in the region to offer strategic oil storage to India. Both nations are cooperating on renewable energy and have launched an India-UAE Hydrogen Task Force to scale up green hydrogen production. The partnership has expanded significantly into other strategic areas. India and the UAE have a growing defense relationship with regular joint military exercises involving their respective army, navy, and air forces.

They also cooperate on counter-terrorism. Both nations are active in regional and multilateral forums, including the I2U2 group (India, Israel, UAE, and the U.S.) and the India-Middle East-Europe Economic Corridor (IMEEC). The large Indian community in the UAE is a strategic asset for India. 

The Indian diaspora in the UAE numbers approximately 3.8 million, making it the country's largest expatriate group and a vital part of its economy. The UAE is the second-largest source of remittances to India, contributing $22.8 billion in 2023-24. The vibrant Indian community maintains strong cultural ties, exemplified by the opening of the BAPS Hindu temple in Abu Dhabi in 2024. 

Summing up, Commerce Minister Piyush Goyal's visit to UAE took place within the context of a robust and expanding Comprehensive Strategic Partnership between the two countries. The partnership extends beyond trade to include collaboration in energy, defense, technology, and food security.

The visit strengthened economic and strategic ties between the two nations through high-level discussions and reviews of major agreements and reinforced the UAE's position as one of India's most significant strategic partners.