In May 2025, India made significant strides in strengthening energy and trade ties with the Gulf States, especially the United Arab Emirates (UAE) and Oman. These steps are aimed at ensuring stable energy supplies, reducing the trade deficit and expanding India’s strategic influence in the region.
Agreement with UAE: Expanding energy cooperation
India and the UAE have signed a number of agreements covering key energy sectors. These include long-term liquefied natural gas (LNG) supply contracts, expansion of oil storage capacity in India and civil nuclear energy cooperation. Notably, India and the UAE have entered into a memorandum of understanding to involve Indian expertise in the operation and maintenance of the Barakah Nuclear Power Plant, the first nuclear power plant in the Arabian Peninsula.
Upcoming agreement with Oman: Diversifying energy supply
India is close to concluding a Comprehensive Economic Partnership Agreement (CEPA) with Oman. The agreement is expected to be signed soon and will result in duty reductions on about $3 billion worth of Indian exports, including agricultural products, jewelry, and automobiles. In return, India has agreed to reduce duties on some Omani goods such as petrochemicals and aluminum, with limited import volumes.
The strategic importance of the Gulf region
Despite increased imports of Russian oil since the outbreak of the conflict in Ukraine, India remains dependent on energy supplies from the Gulf. The threat of increased international sanctions on Russian oil underscores the importance of strengthening ties with the Gulf Cooperation Council (GCC) states to ensure India's energy security.
Joint renewable energy projects
Indian companies are also actively involved in the development of renewable energy in the region. For instance, Jindal Renewables has signed an agreement with OQ Alternative Energy (OQAE) to jointly develop and operate large-scale renewable energy facilities in Oman, including solar and wind power projects.
India’s activism in strengthening energy and trade ties with the Gulf states reflects its desire to secure a stable energy supply, reduce the trade deficit and strengthen its strategic presence in the region. Agreements with the UAE and Oman offer new opportunities for cooperation in the conventional and renewable energy sectors, contributing to India’s sustainable economic development.
* The Institute for Advanced International Studies (IAIS) does not take institutional positions on any issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of the IAIS.
