NEW DELHI — Against the backdrop of escalating global energy anxieties driven by the Iran war, Prime Minister Narendra Modi departed on Friday for a high-stakes, five-nation tour spanning the United Arab Emirates (UAE), the Netherlands, Sweden, Norway, and Italy.
The six-day diplomatic mission is heavily focused on safeguarding India’s energy security and diversifying supply chains as disruptions ripple through critical Gulf shipping lanes and the Strait of Hormuz. The trip also marks India’s first major economic outreach to Europe since signing a historic free trade agreement with the European Union in January, which PM Modi famously termed the “mother of all deals.”
1. UAE: Reinforcing the Energy Anchor
Arriving in the UAE on May 15, PM Modi will hold bilateral talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan. Amid ongoing regional instability, Abu Dhabi remains one of New Delhi’s most trusted energy allies.
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Trade Milestone: Bilateral merchandise trade crossed US$100 billion for the first time, hitting US$101.25 billion in FY 2025-26, with an aggressive roadmap to double it to US$200 billion by 2032.
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Strategic Pacts: India and the UAE are expected to sign two critical Memorandums of Understanding (MoUs) focusing on LPG supplies and the development of Strategic Petroleum Reserves.
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Financial Integration: Trade will be further streamlined via the operational Local Currency Settlement (LCS) system, allowing transactions in INR and AED to reduce reliance on the US dollar.
2. The Netherlands: A Semiconductor Power-Play
Operating under the mantra of “innovation meets scale,” the Netherlands visit shifts the focus toward cutting-edge technology and manufacturing.
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Mega Tech Deal: In a massive boost to India’s chip-making ambitions, Tata Electronics and Dutch tech giant ASML will sign an agreement to equip a state-of-the-art semiconductor fabrication plant in Dholera, Gujarat.
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Climate & Water Cooperation: PM Modi will tour the Afsluitdijk Dam to study Dutch flood-defense and clean-energy infrastructure to boost India’s water management and green hydrogen initiatives.
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Economic Footprint: The Netherlands stands as India’s largest export destination in Europe, boasting a bilateral trade volume of USD 27.8 billion in FY 2024-25.
3. Sweden: Strategic De-risking and Defense Production
With Sweden actively de-risking its economy from China, Stockholm is looking at India as its primary strategic alternative in Asia.
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100% FDI Defense Project: Swedish defense giant Saab is establishing its first Carl-Gustaf weapon manufacturing facility outside Sweden in Jhajjar, Haryana—marking India’s first fully foreign-funded defense manufacturing venture.
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The AI Corridor: Both nations have formalised the Sweden-India Technology and AI Corridor (SITAC) to collaborate on 6G, AI, and quantum computing.
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Critical Minerals: Discussions will also target supply-chain sovereignty using Sweden’s vast critical mineral deposits to fuel India’s semiconductor and electric vehicle (EV) pipelines.
4. Norway: Historic Arctic and Maritime Alliance
Marking the first standalone bilateral visit by an Indian Prime Minister to Norway in 43 years, Oslo will also host the Third India-Nordic Summit.
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USD 100 Billion Investment: The visit operationalizes the India-EFTA Trade and Economic Partnership Agreement (TEPA), which guarantees a USD 100 billion investment and one million direct jobs in India over 15 years.
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Sovereign Wealth Infusion: Norway’s Government Pension Fund Global (GPFG)—the world’s largest sovereign fund—has pumped nearly USD 30 billion into Indian capital markets.
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Maritime Mastery: Indian shipyards now command 11 per cent of the Norwegian Shipowners’ Association order book, with Cochin Shipyard building eco-friendly vessels, and GRSE partnering with Kongsberg to manufacture India’s first indigenous Polar Research Vessel. Additionally, ISRO antennas at Svalbard have become fully operational as of 2026.
5. Italy: The Western Anchor of IMEEC
The final leg of the tour takes PM Modi to Italy from May 19 to 21 at the invitation of Prime Minister Giorgia Meloni, driven by their Joint Strategic Plan of Action 2025-29.
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IMEEC Progression: Italy is acting as the Western anchor for the India-Middle East-Europe Economic Corridor (IMEEC). The strategic corridor received a massive boost with the official activation of the Sparkle-Airtel Blue-Raman submarine cable connecting Mumbai to Genoa.
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Corporate Mega-Deals: Bilateral trade is tracking toward a 20 billion euro target by 2029, anchored by Tata Motors’ 3.8 billion euro acquisition of the Iveco Group—the largest ever Indian investment in Italy.
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Financial Backing: To ease trade post-the India-EU FTA, Italy has opened a SIMEST office in New Delhi backed by a 500 million euro funding line, alongside 200 million euros from SACE dedicated to supporting small and medium enterprises (SMEs).
