Stories
India, UAE Explore Deeper Energy Ties, Subsea Gas Pipeline, and $100 Billion Investment Goal
- •India is exploring the UAE as a more significant source for LPG and LNG supplies, aiming to diversify energy sources amid geopolitical uncertainties.
- •A study is underway to assess the feasibility of subsea pipelines for gas transport and storage in India, enhancing energy resilience.
- •The energy discussions are part of a broader initiative to increase UAE investments in India, with an ultimate target of $100 billion from current levels of around $25 billion.
- •The UAE is eyeing investment opportunities in various Indian sectors including space, startups, ports, shipbuilding, and the stock market.
- •Bilateral trade between India and the UAE is increasingly conducted in rupee and dirham, with local currency trade already in double digits and expected to grow rapidly.
Key Questions Answered
India is exploring a larger role for the UAE in supplying liquefied petroleum gas (LGP) and liquefied natural gas (LNG), alongside studying the feasibility of subsea pipelines to transport and store gas in India to boost energy security and resilience. Additionally, both sides are working to expand strategic petroleum reserves in India.
The ultimate objective of the ongoing economic discussions is to elevate UAE investments in India to $100 billion, increasing significantly from the current level of around $25 billion and above. The UAE is eyeing opportunities across sectors such as space, startups, ports, shipbuilding, and the Indian stock market.
Bilateral business between India and the UAE is increasingly being conducted using the Indian rupee and the UAE dirham, with periodic currency conversions into dollars when required, leading to double-digit local currency trade. Furthermore, the UAE's rapid adoption of India's UPI system is opening up new avenues for fintech, AI, and cybersecurity cooperation.
