In a big diplomatic move, Prime Minister Narendra Modi arrived in the United Arab Emirates (UAE) on Friday just as India faces yet another fuel price shock in the middle of intensifying war in West Asia. Petrol, diesel and CNG prices are on the rise in India after years of relative price stability, owing largely to international crude oil disruptions caused by the Iran crisis.
The UAE trip is the first leg of Modi’s six-day, five-nation diplomatic expedition that also covers the Netherlands, Sweden, Norway and Italy. That said, energy security and India’s economic concerns will likely be the major focus of discussions in Abu Dhabi.
Why is PM Modi’s trip to UAE important now?
India’s decision to hike petrol and diesel prices has shone a light on the increasing pressure on the country’s energy fraternity. Retail fuel prices have increased for the first time in almost four years as petrol and diesel prices increased by Rs 3 per litre and CNG prices have risen.
The price hike comes amidst the growing apprehensions about oil supply disruptions caused by the Iran war and unrest in the Gulf region. With nearly 90 per cent of its crude oil imports coming from around the world, India is highly exposed to international geo-political turbulence.
Watch here:
Sharing my remarks during meeting with my brother, His Highness Sheikh Mohamed bin Zayed Al Nahyan. @MohamedBinZayed https://t.co/j1hoGlPDib
— Narendra Modi (@narendramodi) May 15, 2026
In this backdrop, Modi’s meeting with UAE President Mohamed bin Zayed Al Nahyan is expected to revolve significantly around ensuring a stable long-term energy supply for India.
What Will Modi Discuss With UAE Leaders?
In his major diplomatic visit, the Indian Prime minister will discuss Energy cooperation, trade, investment and regional security and these topics will be the focus of India-UAE talks.
India and the UAE already have good economic relations under their Comprehensive Strategic Partnership framework. The UAE is India’s number three trading partners and a major source of foreign investment in India.
The well-being of more than 4.5 million Indians residing in the UAE will also likely be on the table.
MoUs signed between India and UAE
India and the UAE concluded a raft of major agreements during Prime Minister Narendra Modi’s visit to Abu Dhabi to increase cooperation in defence, energy, infrastructure and investment.
The highlight of the visit was the Agreement on Framework for the Strategic Defence Partnership, which is expected to deepen collaboration in defence manufacturing, military technology, maritime security and strategic co-ordination.
PM Modi met UAE President, Mohamed bin Zayed Al Nahyan and energy security was a major point of discussion against the backdrop of rising tension in West Asia and concerns over global oil supplies.
Energy and Investment agreements
India and the UAE concluded a Memorandum of Understanding on Strategic Petroleum Reserves to enhance India’s energy security and hedge against future supply disruptions from volatile crude markets and the conflict in Iran.
The two countries also signed an agreement for long-term supplies of Liquefied Petroleum Gas (LPG) in order to secure fuel supplies and reduce the impact of global price fluctuations on Indian consumers. A third major agreement was an MoU for setting up a Ship Repair Cluster at Vadinar in Gujarat to enhance India’s maritime infrastructure.
The UAE also announced that it will invest close to USD 5 billion in Indian infrastructure projects, RBL Bank and Samman Capital as the India-UAE relationship expands beyond trade and energy.
How Has Iran Conflict Affected India?
The West Asian conflict has shaken global energy markets, sent crude oil prices soaring and heightened concerns over shipping chokepoints in the Gulf.
The unrest has also impacted the Indian rupee, making oil imports more expensive. The pressure on state-run oil marketing companies reached a breaking point, analysts say, and the government was forced to allow fuel price revisions.
Critics also pointed out that the price increase came just after assembly elections were held in major states, giving the government more breathing room to make tough economic choices.
Prime Minister Modi had long urged citizens to reduce fuel consumption and use alternatives like public transport, electric cars and remote working to reduce dependence on fuel.
What Next After UAE
Following Abu Dhabi, Modi will visit the Netherlands, Sweden, Norway and Italy for important diplomatic meetings.
In Sweden, Modi will meet Prime Minister Ulf Kristersson and the European Round Table for Industry along with European Commission President Ursula von der Leyen.
In Norway, he will attend the India-Nordic Summit, while in Italy he is expected to meet with Prime Minister Giorgia Meloni and President Sergio Mattarella. With global energy uncertainty rising, Modi’s trip to the UAE is seen as a key diplomatic move to shield India from the economic impact of Iran crisis while bolstering ties elsewhere.
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