In a boost to India’s energy security, several MoUs have been signed during PM Narendra Modi’s UAE visit on Friday. PM Modi’s visit to the UAE amid the ongoing US-Iran conflict and global crude oil price shock holds particular significance.
According to an ANI report, several key agreements and investment commitments were announced during the trip. Among the major outcomes was an agreement establishing a framework for a strategic defence partnership between India and the UAE.
The two sides also signed a memorandum of understanding related to strategic petroleum reserves, along with an agreement concerning supplies of liquefied petroleum gas (LPG).
Another important development was the signing of an MoU for the creation of a ship repair cluster at Vadinar.
In addition, investments worth $5 billion were announced for Indian infrastructure projects as well as in RBL Bank and Samman Capital.
PM Modi also conducted delegation-level discussions with Sheikh Mohamed bin Zayed Al Nahyan during his visit to the United Arab Emirates. Upon arriving in Abu Dhabi, PM Modi was welcomed with a ceremonial guard of honour.
On Friday, Modi departed for Abu Dhabi as part of a five-country tour scheduled from May 15 to May 20. The visit includes stops in the UAE, Netherlands, Sweden, Norway and Italy. The trip is aimed at strengthening India’s strategic ties in areas such as trade, energy, technology, innovation and green growth, while further expanding engagement with Europe and the Gulf region.
India’s Import DependenceIndia is largely dependent on the world for its crude oil and LPG supplies. Around 90% of its crude requirements are imported. Earlier this week, Oil Minister Hardeep Singh Puri said there was no concern regarding fuel availability in the country and noted that the government has significantly increased LPG production amid the ongoing West Asia conflict.
Addressing the CII Annual Business Summit, Puri said domestic LPG output has been raised from around 35,000-36,000 tonnes per day to nearly 54,000 tonnes per day. He also stated that India currently holds crude oil and LNG reserves sufficient for 69 days, along with LPG stocks adequate for 45 days, adding that there is no shortage of cooking gas supplies.
The minister further described Prime Minister Narendra Modi’s recent appeal for austerity as a warning signal that should encourage people to start considering ways to reduce the fiscal burden arising from the West Asia crisis.
Speaking at the summit, Puri said the Prime Minister’s message should be viewed as a call to think about measures that can help ease the economic strain caused by the conflict.
On Sunday, PM Modi had urged citizens to use fuel carefully and avoid non-essential spending such as gold purchases and foreign travel in an effort to strengthen the economy.
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