Modi begins five-nation tour with first halt in UAE

Prime Minister Narendra Modi began a five-nation foreign tour with a brief visit to the United Arab Emirates (UAE) on Friday, as India and the UAE signed agreements on defense cooperation, strategic petroleum reserves and long-term LPG supply amid pressure on global energy markets.

The UAE visit produced a Framework for the Strategic Defense Partnership, a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Ltd and Abu Dhabi National Oil Co. (ADNOC), and a long-term liquefied petroleum gas (LPG) supply arrangement between Indian Oil Corp. Ltd and ADNOC.

The petroleum reserves agreement seeks to raise UAE participation in India’s Strategic Petroleum Reserves to 30 million barrels and work toward strategic gas reserves in India. The defense framework covers deeper cooperation in defense industry, advanced technology, training, exercises, maritime security, cyber defense, secure communications and information exchange.

The two sides also announced $5 billion in UAE investments into India, including $3 billion by Emirates New Development Bank in RBL Bank, $1 billion by the Abu Dhabi Investment Authority with the National Infrastructure and Investment Fund, and $1 billion by International Holding Co in Sammaan Capital.

Other outcomes included an agreement between Cochin Shipyard and Drydocks World Dubai to set up a ship repair cluster at Vadinar, a tripartite MoU on skill development in ship repair, a term sheet for an 8 exaflop supercompute cluster involving CDAC and G42, and operationalization of the MAITRI virtual trade corridor.

Modi met UAE President Sheikh Mohamed bin Zayed Al Nahyan during the visit.

The Prime Minister reaffirmed India’s condemnation of attacks on the UAE and called for safe transit and unimpeded navigation through the Strait of Hormuz, which he described as vital for regional stability as well as energy and food security.

The UAE is the first stop in Modi’s 15 to 20 May tour, which will also take him to the Netherlands, Sweden, Norway and Italy.

The Ministry of External Affairs said the visit is intended to deepen India’s partnerships across energy, trade, investment, defense, security, technology and people-to-people ties.

The visit comes at a difficult moment for India’s economy. India’s April merchandise trade deficit widened to $28.38 billion as crude imports surged. State-run fuel retailers also raised petrol and diesel prices by ₹3 a liter on Friday, the first increase in four years, after global crude prices rose amid the Middle East conflict.

The UAE remains central to India’s energy security. MEA officials said ahead of the visit that the UAE was India’s fourth-largest crude supplier last year, meeting nearly 11% of the country’s requirement, and its largest LPG source, supplying nearly 40% of India’s requirement.

After the UAE, Modi is scheduled to visit the Netherlands from 15 to 17 May, Sweden from 17 to 18 May, Norway from 18 to 19 May and Italy from 19 to 20 May. The Norway leg will include the third India-Nordic Summit in Oslo and will mark the first prime ministerial visit from India to Norway in 43 years.

The tour gives India a chance to reinforce energy, investment and technology ties with Gulf and European partners while managing the economic fallout from war, oil volatility and currency pressure.