The talks are said to be at an early stage, at a time when the UAE is looking to strengthen its military capabilities following recent tensions in the Middle East.
Sources told India Today that discussions include the potential export of Akashteer, an advanced fully automated air defence command-and-control system developed by state-run Bharat Electronics Limited in collaboration with the Indian Army.
Another source quoted by the channel said the UAE has expressed interest in multiple Indian defence platforms.
“The UAE has shown interest in a number of our weapon systems, including BrahMos and Akashteer. The talks between India and the UAE are at initial stages and are progressing fast,” a source said.
The UAE is reportedly reassessing its defence procurement strategy after facing missile and drone threats during the recent regional conflict involving Iran, the United States and Israel.
India–UAE trade ties
According to the Indian Embassy in the UAE, bilateral trade relations between India and the UAE were significantly strengthened with the signing of the Comprehensive Economic Partnership Agreement (CEPA) in February 2022.
From around US$180 million annually in the 1970s, bilateral trade has grown to a record US$101.25 billion in FY 2025–26.
“Today, the UAE ranks as India’s third-largest trading partner and second-largest export destination, with exports exceeding US$37.35 billion in FY 2025–26,” the Embassy stated.
India, meanwhile, is the UAE’s second-largest trading partner. The trade basket is highly diversified, covering petroleum products, gems and jewellery, food items, textiles, chemicals, electronic goods, and engineering goods.