New Delhi, May 23 (IANS) Agreements signed between India and the United Arab Emirates during Prime Minister Narendra Modi’s visits deepen strategic‑economic partnership across energy storage, long‑term fuel supplies, defence cooperation and artificial intelligence, a report has said.

The report from India Narrative said the agreement builds India’s energy resilience, maritime security, digital ecosystems, and emerging artificial intelligence capabilities.

It includes a $5 billion investment commitment through the National Investment and Infrastructure Fund (NIIF) of India and the Abu Dhabi Investment Authority (ADIA) and an arrangement to store up to 30 million barrels of crude oil possibly in Fujairah as part of India’s strategic petroleum reserves.

At the domestic level, $5 billion investment commitment facilitates long-term capital accumulation in critical sectors that require sustained and patient investment.

“Strategically, it enhances the participation of Gulf sovereign wealth in India’s economic transformation and development trajectory, thereby positioning the UAE as an important stakeholder in India’s economic stability, infrastructure expansion, and market growth,” the report said.

Analysts said the crude storage agreement possibly holding Indian strategic oil in Fujairah outside the Strait of Hormuz reduces chances of supply disruption and strengthens India’s buffer against supply shocks improving national security.

Both countries also signed a $3 billion LNG deal under which ADNOC Gas would supply LNG to India’s Hindustan Petroleum Corporation Limited (HPCL) over a period of ten years which could further be expanded.

Such long‑term commitments aim to stabilise India’s fuel imports and improve predictability amid higher shipping costs and insurance premiums caused by regional instability.

The report also lauded areas of technological cooperation, particularly in the fields of artificial intelligence (AI) and high-performance computing (HPC).

It will boost India’s advanced computing power and “could substantially strengthen India’s AI ecosystem by supporting initiatives related to defence technologies, climate and weather modelling, cybersecurity, large language models, and broader industrial innovation.”

PM Modi’s visit to Abu Dhabi, on his way to Europe, came in the backdrop of the UAE’s recent decision to exit the Organisation of Petroleum Exporting Countries (OPEC) quota system, a move that allows the Gulf nation greater flexibility to increase oil production and pursue bilateral supply agreements with key partners such as India, another article pointed out.

—IANS

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