UAE to Store 30 Million Barrels in India’s Oil Reserves: What PM Modi’s Visit Achieved

India and the United Arab Emirates have agreed to significantly expand their energy partnership, with the UAE set to store up to 30 million barrels of crude oil in India’s Strategic Petroleum Reserves.

Foreign Secretary Vikram Misri outlined the development, saying: "We will be issuing a more detailed press release later today, but let me give you a snapshot of everything that happened during the course of this brief two-and-a-half-hour visit. On the bilateral front, the two sides have concluded several important initiatives to further deepen our comprehensive strategic partnership. Energy has always been a very important part of this relationship. In the energy cooperation field, we've seen several agreements being initialled between Indian energy sector companies and UAE entities, primarily the Abu Dhabi National Oil Company. These include agreements on enhancing UAE participation in Indian strategic petroleum reserves to a level of 30 million barrels, the establishment of strategic gas reserves in India, and long-term LPG offtake supply agreements."

This means the UAE will store oil in India’s reserves, ensuring quick access during disruptions while strengthening India’s energy security.

Why is this deal important for India’s energy security?

Strategic petroleum reserves act as a buffer during global supply shocks, geopolitical tensions, or price volatility. By allowing the UAE to store oil domestically, India ensures faster availability of crude in emergencies while also deepening ties with a key energy supplier.

The agreement also includes plans for strategic gas reserves and long-term LPG supply, broadening the scope beyond crude oil.

What investments were announced during the visit?

The visit also saw major financial commitments from UAE entities into India’s economy. Misri said: "In the field of investment, the UAE has traditionally been a significant investor in India, cumulatively the seventh largest investor over the course of the last 25 years. Today, new investment commitments were signed totalling USD 5 billion. These include investments by Emirates NBD Bank in RBL Bank in India, by the Abu Dhabi Investment Authority in the National Infrastructure Investment Fund, and by the International Holding Company in Saman Capital of India."

These investments span banking, infrastructure, and financial sectors, indicating long-term economic collaboration.

How are defence ties evolving between the two countries?

India and the UAE also strengthened defence cooperation, moving toward a more structured partnership.

Misri noted: "Defense cooperation has also been a major area of focus in recent years. Today, the two sides built on the initial steps that were taken during the visit of His Highness President Sheikh Mohamed bin Zayed to Delhi in January this year and concluded a framework on a strategic defense partnership. Under this, the two sides will strengthen their collaboration in defense manufacturing, technology, and equipment. Reflecting the Government of India's initiatives in the shipbuilding industry, agreements were signed today between Cochin Shipyard Limited and Drydocks World of Dubai. These include agreements on setting up a ship repair cluster at Vadinar in India and a center of excellence for skill development in the maritime field."

This signals a shift from basic cooperation to joint manufacturing and technology sharing.

What role does technology and AI play in the partnership?

A major highlight of the visit was collaboration in advanced technology, especially artificial intelligence infrastructure.

Misri said: "Cooperation in advanced technology took a giant step forward today with the signing of a term sheet for the establishment of an 8-exaflop supercomputing facility in India. This will add to India's AI mission and the associated infrastructure. Furthermore, as both the UAE and India share an interest in building supply chain resilience, this visit saw the operationalisation of the virtual trade corridor called METRI between Indian and UAE ports. This will lead to much greater efficiencies in maritime commerce between the two nations."

The proposed supercomputing facility could significantly boost India’s AI capabilities, while the METRI corridor aims to streamline trade logistics.

What geopolitical issues were discussed?

Regional security concerns were also a key part of the discussions.

Misri said: "Finally, the situation in the region came in for detailed discussion. The Prime Minister once again conveyed India's strongest condemnation of the attacks that have taken place in the UAE. He conveyed India's solidarity with the leadership and the people of the United Arab Emirates and reiterated the need for unimpeded transit passage through the Strait of Hormuz and the cessation of attacks on shipping and on mariners."

This highlights India’s support for maritime security and stable energy supply routes.

What comes next in India-UAE relations?

Prime Minister Narendra Modi also extended an invitation to UAE President Sheikh Mohamed bin Zayed to visit India, signaling continued high-level engagement.

Overall, the visit underscores how India-UAE ties are expanding beyond oil into defence, technology, infrastructure, and global trade—marking a deeper and more strategic partnership.

(With inputs from ANI)