United Arab Emirates To Store 30 Million Barrels In India As PM Narendra Modi Signs Major Defence And Energy Deals

India and the UAE have signed a series of major agreements covering defence, energy security, infrastructure investment and maritime cooperation during Prime Minister Narendra Modi’s visit to Abu Dhabi.

The agreements come amid rising tensions in West Asia and growing concerns over global energy security following attacks near the Gulf region.

What happened

• India and the UAE signed:
  • A strategic defence partnership framework
  • Energy and petroleum reserve agreements
  • Infrastructure and banking investment deals
• The UAE will store 30 million barrels in India’s strategic petroleum reserves.
• The UAE also pledged nearly USD 5 billion in investments across Indian infrastructure and financial sectors.

Key energy agreements

India and the UAE expanded cooperation in:

• Crude oil reserves
• LPG supplies
• Strategic gas reserves

Major developments include:

• Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company
• Long-term LPG supply arrangement with Indian Oil Corporation

The UAE currently:

• Supplies nearly 11% of India’s crude oil imports
• Provides around 40% of India’s LPG requirements

Massive investment commitments

The UAE’s proposed USD 5 billion investments include:

• Up to USD 1 billion for Indian infrastructure projects
• USD 3 billion investment in RBL Bank
• USD 1 billion investment in Sammaan Capital

Strategic defence partnership

Both countries also signed a framework for deeper defence cooperation covering:

• Maritime security
• Cyber defence
• Military training and exercises
• Secure communications
• Defence technology and innovation

Modi’s message on regional tensions

During talks with Sheikh Mohamed bin Zayed Al Nahyan, PM Modi:

• Condemned attacks on the UAE
• Backed safe navigation through the Strait of Hormuz
• Said India stands “shoulder to shoulder” with the UAE

The visit came shortly after Modi met Iranian Foreign Minister Abbas Araghchi in New Delhi.

Why it matters

• The agreements significantly deepen India-UAE strategic ties during a volatile period in West Asia.
• Expanding petroleum reserves strengthens India’s long-term energy security.
• Defence cooperation signals growing geopolitical alignment between the two countries.

Who is affected

• Indian energy and infrastructure sectors
• Global oil and shipping markets
• Businesses involved in India-UAE trade
• Regional security stakeholders in West Asia

What to watch next

Focus now shifts to implementation of the petroleum reserve expansion, defence cooperation roadmap and whether further India-UAE investment announcements emerge in the coming months.