Prime Minister Narendra Modi flew to the UAE for a quick two-hour stopover on Friday on his way to attend the India-North India summit, and the two countries signed several key agreements, including on oil and LPG supplies.
These deals come at a critical time as the world grapples with a global energy supply chain that has been damaged by the war in West Asia, and which has been temporarily halted for the time being.
Modi’s two-hour visit to the UAE mimics a similar short trip made by UAE President Sheikh Mohammed bin Zayed Al Nahyan that lasted a few hours earlier this year in January.
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The complete list of deals and investments signed between India and the UAE during Modi’s visit-
– Agreement on the framework of the strategic defense partnership between India and the UAE
– Memorandum of understanding on strategic petroleum reserves
-Liquefied Petroleum Gas Supply Agreement
– Memorandum of Understanding regarding the establishment of a ship repair complex in Vadinar, Gujarat
– Announcing investments worth $5 billion in the Indian Infrastructure Corporation, RBL Bank, and Saman Capital
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Why are these deals important?
The deals signed between India and the UAE are of particular importance due to the timing of their signing. The agreements regarding LPG supplies and oil reserves come at a time when the country is dealing with an energy crisis and rising gasoline and diesel prices as a direct impact of the war in West Asia.
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A few days ago, Modi urged the entire nation to take fuel-saving measures, including shifting to working from home, using cars, and preferring public transportation.
He also urged the people of India to avoid buying gold and traveling abroad for about a year, presenting the appeal as of national importance and patriotic duty.
A few days after the Prime Minister’s appeal, oil companies in India raised petrol and diesel prices by 10%. $3 every Friday, May 15.
India is also the world’s second-largest importer of LPG, making the country highly dependent on global supplies of the fuel to meet domestic needs. Just weeks after war broke out in West Asia after the United States, with support from Israel, attacked Iran on February 28, India saw a major hit to its LPG supplies after the Strait of Hormuz was effectively closed.
