At the centre of the new framework is a Strategic Defence Industrial Partnership that encompasses the co-production of unmanned aerial vehicles, precision missiles, naval platforms and artificial intelligence-driven systems. Indian companies, including ICOMM, have already partnered with CARACAL to manufacture small arms. The broader collaboration is expected to extend into secure communications and advanced munitions.
The United Arab Emirates has also committed investments worth $5 billion, underscoring its intention to establish a long-term strategic defence partnership with India. To ensure sustained institutional engagement, the bilateral defence dialogue mechanism has been upgraded to the Secretary and Vice-Minister level, providing greater continuity and strategic oversight.
Private industry is playing an increasingly important role in strengthening this cooperation. The India-UAE Defence Industry Cooperation Forum has convened meetings for two consecutive years, creating a platform for companies from both nations to identify opportunities and expand collaboration in areas of mutual interest. This development comes as India's defence exports reached a record Rs 38,424 crore, equivalent to approximately billion, during the last financial year.
Maritime security remains a cornerstone of the partnership, particularly as instability in the Gulf underscores the strategic importance of critical sea lanes. Nearly half of India's oil imports transit through the Strait of Hormuz, making joint efforts to secure shipping routes in the Gulf and the Indian Ocean essential to India's energy security.
Recent drone and missile strikes on Fujairah, which injured Indian workers, highlighted the vulnerabilities faced by both countries. India's swift condemnation of the attacks demonstrated its alignment with the UAE's security concerns. The presence of approximately 4.3 million Indians in the UAE adds a significant human dimension to the relationship, making the safety of the Indian diaspora a vital component of bilateral ties.
Beyond defence, the partnership is embedded within a broader framework of trade, energy and strategic cooperation. Bilateral trade surpassed $100 billion in the financial year ending March 31, and both countries aim to double that figure to $200 billion by 2032. India also maintains crude oil storage facilities in Fujairah, strengthening the connection between energy resilience and defence collaboration.
As India advances its objective of self-reliance in defence manufacturing and the United Arab Emirates seeks dependable strategic partners amid regional tensions involving Iran and Saudi Arabia, both nations are pursuing a pragmatic and forward-looking partnership. The principal challenge will be balancing technology transfer sensitivities while navigating complex regional fault lines, particularly those involving Iran.
The expansion of India-UAE defence ties represents one of the most consequential strategic developments in the region, combining industrial cooperation, maritime security, cyber capabilities and economic integration. Together, New Delhi and Abu Dhabi are laying the foundation for a robust partnership with far-reaching implications for regional stability and defence innovation.
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