India, UAE Fortify Ties with $3B LNG Deal and Defence Partnership

India and the United Arab Emirates (UAE) have taken a significant step in fortifying their strategic partnership by signing a $3 billion Liquefied Natural Gas (LNG) supply agreement between ADNOC Gas and Hindustan Petroleum Corporation Limited (HPCL). This agreement, which covers 0.5 million tonnes per annum (mtpa) for a decade starting in 2028, is complemented by a Letter of Intent (LoI) aimed at fostering a Strategic Defence Partnership. This move transcends a mere buyer-seller relationship, signalling a long-term vision where India and the UAE collaborate as security and technology partners, not just economic allies.

This development comes at a pivotal moment for India, which has been rapidly expanding its defence relationships globally. The United States remains a cornerstone of India’s defence strategy, with agreements facilitating logistics access, secure communications, joint military exercises, and growing cooperation in defence technology and manufacturing. France, renowned for its Rafale fighters, is another key supplier and co-development partner, while Russia, a longstanding ally, continues to collaborate on critical defence projects such as missiles, aircraft, submarines, and the BrahMos supersonic cruise missile.

India’s defence ties have also strengthened with Israel (drones, air defence, surveillance), Japan and Australia (Indo-Pacific security architecture), and South Korea (artillery systems and industrial partnerships). These relationships underscore a structural shift in India’s defence strategy, moving from a traditional importer to a participant in technology sharing and joint development.

### A Decade of Rising Defence Production

The Ministry of Defence reports a significant rise in India’s defence production, from Rs 53,000 crore in 2015-16 to Rs 1,50,600 crore in 2024-25, nearly tripling in less than a decade. This growth reflects stronger domestic manufacturing, increased private-sector participation, and substantial procurement from Indian industry. Defence exports have surged even more dramatically, from Rs 2,100 crore in 2015-16 to Rs 26,000 crore in 2025-26, a jump of over 1,100%. Between FY16 and FY25, India’s defence production grew by 184%, while exports surged by 1,024%, highlighting India’s transformation into an emerging global defence player.

### Geographic and Product Distribution of Exports

According to SIPRI data for 2000-2024, India’s defence exports are primarily concentrated in its neighbourhood and the Indian Ocean Region. Myanmar accounts for 31% of India’s defence exports, followed by Sri Lanka with 18% and Mauritius with 11%, collectively representing about 60% of total exports. Other recipients include Seychelles and Armenia, marking India’s expanding reach into the Eurasian region.

In terms of product categories, naval platforms dominate India’s defence exports, comprising 58.4% of all exports, followed by aircraft at 19.5% and sensors at 14.4%. These three categories alone account for over 90% of India’s defence exports. Additionally, India has exported armoured vehicles, air defence systems, missiles, and artillery across 734 recorded transfers.

### The BrahMos Effect

The success of Operation Sindoor has brought India’s defence capabilities, particularly the BrahMos supersonic cruise missile, into the global spotlight. The Philippines became the first country to finalise a BrahMos deal, receiving multiple batteries in 2024 and 2025. Countries like Vietnam, Indonesia, and Malaysia are in advanced negotiations, attracted by the missile’s battlefield credibility. Interest has also surged in Brazil, the UAE, and Saudi Arabia, with all three expressing willingness to procure the BrahMos following its reported deployment.

This wave of interest marks a significant expansion in India’s global defence footprint, signalling that the country’s indigenous military technology is entering a new era of international demand. As India continues to diversify its defence partnerships and enhance its domestic production capabilities, it is poised to play an increasingly influential role in the global defence landscape.

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