PM MODI’S UAE & EUROPE TOUR

Background

• Prime Minister Narendra Modi started a five-nation foreign tour on 15 May 2026.
• Countries Included:
  • United Arab Emirates (UAE)
  • Netherlands
  • Norway
  • Sweden
  • Italy
• The visit is happening during the ongoing Iran-West Asia conflict, which has created:
  • Rising oil prices
  • Supply chain disruptions
  • Global energy uncertainty
• Prime Minister Narendra Modi visited the United Arab Emirates (UAE) on 15 May 2026 as the first stop of his five-nation diplomatic tour
• During the visit, PM Modi held extensive discussions with UAE President Mohamed bin Zayed Al Nahyan in Abu Dhabi.

SIGNIFICANCE OF THE VISIT

• A landmark Strategic Defence Partnership Framework,
• Major energy security agreements,
• A $5 billion UAE investment package for India,
• Cooperation in Artificial Intelligence (AI) and supercomputing,
• Maritime infrastructure agreements,
• And enhanced trade and connectivity initiatives.

The visit took place during a period of:

• Rising tensions in West Asia,
• The ongoing Iran conflict,
• Growing uncertainty in global energy markets,
• Supply-chain disruptions,
• And concerns over safe shipping routes in the Gulf region.

Because India imports a large portion of its energy requirements from West Asia, the visit had major strategic and economic importance.

HISTORICAL BACKGROUND OF INDIA UAE TIES

Ancient Trade and Cultural Links India and the Gulf region have shared historical ties for centuries through:

• Maritime trade,
• Cultural exchanges,
• Commercial partnerships across the Arabian Sea.

HISTORICAL TRADE TIES

Historically, traders exchanged:

• Spices,
• Pearls,
• Dates,
• Cotton textiles,
• Fishery products,
• Precious goods.

Western Indian coastal states such as:

• Gujarat,
• Kerala, maintained close trading relations with Gulf ports.

These historical interactions helped create:

• Strong commercial trust,
• Cultural familiarity,
• Deep people-to-people connections.

ESTABLISHMENT OF DIPLOMATIC RELATIONS

• Formal diplomatic relations between India and UAE were established in: 1972

After this:

• Embassies were opened,
• Trade expanded,
• Labour migration increased,
• Strategic cooperation gradually strengthened.

Transformation After 2015

• India–UAE relations entered a new phase after PM Modi’s historic UAE visit in: 2015

This visit was historic because:

• It was the first visit by an Indian Prime Minister in 34 years,
• It marked the beginning of a broader Comprehensive Strategic Partnership.

Since then:

• PM Modi has visited UAE 7 times since 2014.
• UAE President Sheikh Mohamed bin Zayed has visited India five times.

This high-level engagement reflects:

• Strong political trust,
• Shared strategic interests,
• Long-term economic cooperation.

IMPORTANCE OF UAE FOR INDIA The UAE is one of India’s most important partners in:

• Energy,
• Trade,
• Investment,
• Maritime connectivity,
• Defence,
• Technology,
• Diaspora relations.

IMPORTANCE IN ENERGY SECURITY India imports a large percentage of its:

• Crude oil,
• Natural gas,
• LPG requirements from abroad.

The UAE is among India’s most trusted energy suppliers.

In FY 2024–25, UAE was:

• India’s 4th largest crude oil supplier,
• 3rd largest LNG supplier,
• Largest LPG supplier,
• 2nd largest export destination for Indian petroleum products.

This makes UAE extremely important for:

• India’s transportation sector,
• Industrial production,
• Economic stability,
• Energy security framework.

IMPORTANCE IN TRADE & INVESTMENT

• India–UAE economic relations have expanded rapidly.

Bilateral merchandise trade crossed:

• $101.25 billion in FY 2025–26. This is the 1st time trade crossed the $100 billion mark.
• Both countries have now set a target to: Increase trade to $200 billion by 2032.

IMPORTANCE OF INDIAN DIASPORA Indians are the largest expatriate community in the UAE. Millions of Indians work in:

• Construction,
• Healthcare,
• IT,
• Retail,
• Banking,
• Hospitality,
• Logistics,
• Engineering sectors.

These workers contribute to:

• UAE’s economic growth,
• India’s remittance inflows,
• India’s foreign exchange reserves.

The Indian diaspora acts as a major:

• Cultural bridge,
• Economic bridge, between the two countries.

INDIA’S POSITION DURING THE VISIT

PM Modi:

• Strongly condemned recent attacks on the UAE,
• Expressed solidarity with UAE leadership,
• Supported safe and uninterrupted navigation through the Strait of Hormuz.

India stated that secure maritime routes are essential for:

• Regional peace,
• Global trade,
• Energy security,
• Food security.

MAJOR OUTCOMES OF THE VISIT

Outcome 1: Strategic Collaboration on Petroleum Reserves

Agreement Between:

• Indian Strategic Petroleum Reserves Limited (ISPRL)
• Abu Dhabi National Oil Company (ADNOC)

WHAT ARE STRATEGIC PETROLEUM RESERVES?

• Strategic Petroleum Reserves (SPR) are emergency crude oil storage systems maintained by countries to deal with:
  • Wars,
  • International crises,
  • Oil shortages,
  • Global supply disruptions,
  • Sudden price spikes.

India stores crude oil in underground facilities to ensure continuous supply during emergencies. KEY FEATURES OF THE AGREEMENT Under the agreement:

• UAE will enhance participation in India’s SPR programme,
• UAE participation will increase to: 30 million barrels,
• Both countries will also cooperate in creating Strategic gas reserves in India.

Importance of the Agreement The agreement is important because it:

• Strengthens India’s long-term energy security,
• Improves crisis preparedness,
• Reduces vulnerability to international supply shocks,
• Expands India’s energy storage capacity.

The agreement also supports:

• LNG infrastructure,
• LPG storage expansion,
• Long-term hydrocarbon cooperation.

OUTCOME 2: LONG TERM LPG SUPPLY AGREEMENT

Agreement Between:

• Indian Oil Corporation (IOCL)
• Abu Dhabi National Oil Company (ADNOC)

Importance of LPG Agreement

• LPG is an essential cooking fuel used by millions of Indian households.

Demand for LPG is increasing because:

• More families are shifting to clean cooking energy,
• Urbanisation is rising,
• Welfare schemes have expanded LPG access.

The agreement ensures:

• Stable LPG supply,
• Better domestic energy planning,
• Reduced risk of shortages,
• Long-term supply security.

It also reinforces UAE’s role as one of India’s most dependable energy partners.

OUTCOME 3: 5 BN USD INVESTMENT IN INDIA

• One of the biggest outcomes of the visit was the announcement of: $5 billion UAE investment package in India.

Breakdown of Investments 1. Emirates NBD Investment

• Emirates NBD will invest: $3 billion into: RBL Bank

2. ADIA–NIIF Infrastructure Investment Abu Dhabi Investment Authority (ADIA) will invest: $1 billion along with: National Infrastructure and Investment Fund (NIIF) for:

• Infrastructure projects,
• Strategic development initiatives.

3. International Holding Company Investment

• International Holding Company will invest: $1 billion into: Sammaan Capital

Importance of the Investment Package The investments are important because they:

• Increase capital inflows into India,
• Support infrastructure development,
• Strengthen investor confidence,
• Boost economic growth,
• Generate employment opportunities.

The investments also reflect UAE’s:

• Long-term confidence in India’s economy,
• Commitment to India’s growth story.

OUTCOME 4: FRAMEWORK FOR STRATEGIC DEFENCE PARTNERSHIP

• India and UAE signed a: Framework for Strategic Defence Partnership Main Features of the Defence Framework

The agreement focuses on:

• Defence industrial cooperation,
• Joint defence production,
• Co-development of advanced technologies,
• Innovation partnerships,
• Maritime security,
• Cyber defence,
• Secure communication systems,
• Joint training and military exercises.

IMPORTANCE OF THE DEFENCE PARTNERSHIP This framework supports India’s:

• Defence modernisation,
• Indigenous defence manufacturing,
• “Make in India” initiative,
• Strategic autonomy goals.

The partnership will also strengthen:

• Gulf maritime security,
• Regional stability,
• Defence technology cooperation.

OUTCOME 5: 8 EXAFLOP SUPERCOMPUTING CLUSTER

Partnership Between:

• Centre for Development of Advanced Computing (CDAC)
• G42

Meaning of Exaflop Supercomputer

• An Exaflop Supercomputer can perform: Quintillions of calculations per second.
• This is among the highest levels of computing power in the world.

Importance of the Project The project will:

• Strengthen India’s AI ecosystem,
• Improve sovereign AI capabilities,
• Boost scientific research,
• Support cybersecurity and big data analysis,
• Enhance digital infrastructure.

Meaning of Sovereign AI Sovereign AI refers to:

• AI systems developed and controlled domestically,
• National ownership over strategic data,
• Reduced dependence on foreign digital systems.

This is increasingly important for:

• National security,
• Technological independence,
• Economic competitiveness.

OUTCOME 6: SHIP REPAIR CLUSTER AT VADINAR

Agreement Between:

• Cochin Shipyard Limited
• Drydocks World

Importance of the Project The project will:

• Develop maritime infrastructure,
• Improve ship repair capabilities,
• Strengthen logistics networks,
• Enhance port connectivity,
• Support coastal industrialisation.

The project also supports: Make in India through:

• Domestic industrial development,
• Indigenous maritime capability building.

OUTCOME 7: SKILL DEVELOPMENT IN MARITIME SECTOR A tripartite agreement was signed for:

• Maritime training,
• Technical upskilling,
• Shipbuilding expertise development.

Importance The initiative supports:

• Employment generation,
• Skilled workforce creation,
• India’s emergence as a global maritime talent hub.

It also aligns with: Skill India Mission

OUTCOME 8: VIRTUAL TRADE CORRIDOR & MAITRI PLATFORM

• India and UAE welcomed the operationalisation of: Virtual Trade Corridor using: MAITRI digital framework

Purpose of MAITRI The framework connects:

• Customs authorities,
• Ports,
• Trade systems of both countries.

Benefits The initiative will:

• Reduce cargo delays,
• Lower logistics costs,
• Improve trade efficiency,
• Reduce transit time,
• Strengthen supply-chain connectivity.

ROLE OF CEPA

• The visit also strengthened implementation of: India–UAE Comprehensive Economic Partnership Agreement (CEPA)

CEPA has already helped:

• Increase bilateral trade,
• Improve market access,
• Boost investment cooperation.

OVERALL STRATEGIC IMPORTANCE

• The visit demonstrates that India–UAE relations are evolving from a traditional: Oil-based partnership into a: Future-oriented strategic partnership.

The relationship now includes:

• Energy security,
• AI and supercomputing,
• Defence manufacturing,
• Maritime infrastructure,
• Digital connectivity,
• Logistics,
• Investment,
• Skill development.

THE NETHERLANDS VISIT

• PM Modi’s second visit to the Netherlands after 2017.

Main Areas of Cooperation (a) Semiconductor Technology An agreement will be signed between:

• Tata Electronics
• ASML

Purpose: To support a semiconductor fabrication plant in:

• Dholera, Gujarat

WHY SEMICONDUCTORS MATTER? Semiconductors (chips) are used in:

• Mobile phones
• Cars
• Computers
• Defence equipment
• AI systems

India wants to become less dependent on imports from East Asia.

CLEAN ENERGY & WATER MANAGEMENT

(b) Clean Energy & Water Management

• PM Modi and Dutch PM visit: Afsluitdijk Dam

Focus Areas:

• Water management
• Hydrogen energy
• Sustainable fisheries
• Climate resilience

The Netherlands is globally famous for flood control and water technology. (c) Trade & Investment The Netherlands is:

• India’s largest export destination in Europe
• A major investor in India

Bilateral Trade:

• Around $27.8 billion

(d) Indian Community The PM interacted with:

• NRIs
• Surinami Hindustani community

This is the largest Indian-origin group in mainland Europe.

THE SWEDEN VISIT

• PM Modi visited Sweden previously in 2018.

Why Sweden Is Important Sweden is a leader in:

• Innovation
• Research
• Green technology
• Telecommunications
• Defence manufacturing

KEY AREAS OF COOPERATION

(a) Technology & AI Corridor

• India and Sweden signed: SITAC (Sweden-India Technology and AI Corridor)

Areas Covered:

• AI
• Quantum computing
• 6G technology
• Life sciences
• Digital technology

(b) Defence Cooperation Saab is building a manufacturing plant in:

• Jhajjar, Haryana

Importance: It is India’s first: 100% FDI-based defence manufacturing project (c) Critical Minerals Partnership Sweden has large deposits of critical minerals needed for:

• EV batteries
• Semiconductors
• Defence electronics

India wants secure supply chains for future industries. (d) Green Investments A Swedish company signed an investment agreement in Maharashtra for:

• Electric boats

Worth: ₹1,990 crore

THE NORWAY VISIT

• This is the first standalone bilateral visit by an Indian PM to Norway in 43 years.
• PM Modi will also attend: Third India-Nordic Summit

WHY NORWAY MATTERS?

(a) India-EFTA Trade Agreement

• India signed a trade agreement with EFTA countries.

Full Form: European Free Trade Association Countries include:

• Norway
• Switzerland
• Iceland
• Liechtenstein

Benefits:

• $100 billion investment commitment
• 1 million jobs expected over 15 years

(b) Maritime Cooperation Indian shipyards are building ships for Norway. Important agreement:

• Cochin Shipyard
• Kongsberg Maritime

(c) Polar & Space Cooperation ISRO Presence

• Indian Space Research Organisation antennas are operational in: Svalbard

Importance: Useful for:

• Satellite communication
• Arctic research
• Space missions

(d) Clean Energy Norway is a major renewable energy producer. Cooperation includes:

• Green shipping
• Renewable energy
• Sustainable transport

THE ITALY VISIT

• PM Modi visited Italy from May 19–21.

WHY ITALY IS IMPORTANT?

(a) IMEEC Corridor

• Italy supports: IMEEC (India-Middle East-Europe Economic Corridor)

This project aims to improve:

• Trade routes
• Connectivity
• Energy transportation
• Supply chains

(b) Undersea Cable Project A submarine cable linking India to Europe through Italy has become operational.

Benefits:

• Better internet connectivity
• Faster digital communication
• Data transfer security

(c) Trade & Investment Italy is India’s: 4th largest trading partner in the EU

Bilateral Trade:

• Around $16.77 billion

(d) Major Tata Deal

• Tata Motors acquired: Iveco Group

Deal Value: 3.8 billion euros This is one of the biggest Indian investments in Italy.

OUTCOMES

• Special Strategic Partnership: Both leaders elevated the bilateral relationship to mark deeper strategic alignment, with a focus on defense manufacturing, clean energy, and Indo-Pacific cooperation.
• Defence Industrial Roadmap: Paved the way for joint defense research, co-development, and co-production between the two nations.
• Technology & Trade: Collaborations were established in artificial intelligence, space cooperation, and critical minerals. Both nations agreed to foster cooperation under the principle of "Design and Develop in India and Italy, and Deliver for the World".
• Security Cooperation: Signed Memorandums of Understanding (MoUs) to curb tax crimes, money laundering, and terror financing.
• Worker Mobility: Formalized an agreement to facilitate the mobility and recruitment of Indian nurses and healthcare workers to Italy.
• Cultural & Scientific Exchange: Signed multiple MoUs expanding partnerships in agriculture, traditional medicine (Ayurveda), and educational research.
• FAO Recognition: PM Modi was honored with the prestigious FAO Agricola Medal by the United Nations' Food and Agriculture Organization.