India and the United Arab Emirates have signed a major energy partnership agreement aimed at strengthening India’s energy security and reducing risks from global oil market disruptions.
The agreement was finalized during Prime Minister Narendra Modi’s visit to Abu Dhabi, where both countries discussed expanding cooperation in Oil, Gas, Trade and Infrastructure sectors.
As part of the deal, the UAE’s Abu Dhabi National Oil Company (ADNOC) will be allowed to store up to 30 million barrels of crude oil in India’s Strategic Petroleum Reserve facilities. Officials said the move could increase India’s emergency oil reserve capacity by nearly 70%.
India imports almost 90% of its crude oil requirements, making the country highly dependent on global energy supplies. The new arrangement is expected to help India maintain stable fuel supplies during international crises, conflicts, or disruptions in major shipping routes such as the Strait of Hormuz.
The two countries also signed long-term agreements related to LPG and LNG supplies, while discussions were held on creating strategic gas reserves in India. Energy experts believe the partnership will help India secure more reliable fuel access at a time of rising geopolitical tensions in West Asia.
In addition to energy cooperation, the UAE announced investment plans worth nearly $5 billion in sectors including infrastructure, ports, banking, logistics, and advanced technology.
Both leaders emphasized the importance of ensuring safe maritime trade routes and maintaining stability in global energy markets. Analysts say the agreement marks one of the most significant India-UAE energy partnerships in recent years and reflects the growing strategic relationship between the two countries.
