India is exploring the possibility of the UAE becoming a more important supplier of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) to the country, while the two sides are also studying the feasibility of subsea pipelines to transport and store gas in India, Commerce and Industry Minister Piyush Goyal said on September 28.
“Given the geopolitical situation currently, UAE being a trusted partner, we are working with them to expand strategic petroleum reserves in India,” Goyal said after the 14th meeting of the India-UAE High Level Joint Task Force on Investments.
“We are also exploring the possibility of the UAE becoming a more important source of LPG and LNG that we require,” he said.
Goyal added that a study is underway to examine whether India could use underwater ocean pipelines to bring gas into the country and store it, as part of efforts to strengthen energy resilience and security.
The potential expansion of the UAE’s role in India’s LPG and LNG supply chain comes as New Delhi seeks to diversify energy sources amid continuing geopolitical uncertainty and disruptions to global shipping routes.
UAE eyes $100 billion India investment
The energy discussions are part of a broader push to deepen UAE investment in India. Goyal said the ultimate objective is to take UAE investments in India to $100 billion, from around $25 billion and more currently.
The UAE is looking at opportunities in sectors including space, startups, ports and shipbuilding, while also exploring investments in India’s stock market, Goyal said.
He said the UAE’s growing interest across these sectors reflects confidence in the Indian economy.
Rupee-dirham trade rises
Goyal said more India-UAE business is increasingly being conducted in rupee and dirham, with the currencies converted into dollars periodically where required.
“India-UAE local currency trade is in double digits,” he said, adding that the two sides expect it to expand more rapidly.
He also said the UAE’s use of India’s UPI system is increasing quickly, opening up opportunities for cooperation in fintech, artificial intelligence and cybersecurity for financial services.
Maritime, aviation cooperation
India and the UAE have identified six areas for deeper cooperation in the maritime sector: ship ownership, modern ports, ship manufacturing, ship repair and maintenance, shipbreaking and container manufacturing.
A working group will be set up for these areas, with India’s Shipping Ministry leading the engagement from the Indian side.
The two countries have also agreed to establish a formal working group on civil aviation to address key issues and attract greater investment into India.
Goyal said bilateral trade is recovering towards pre-war levels and could return to and exceed those levels in the coming months.
He also said India’s merchandise exports had increased by more than 15 percent between April and September 21 from the start of the fiscal year, despite geopolitical tensions and disruption around the Strait of Hormuz.
Source: Moneycontrol
