Posting his photograph with Mr Al Nahyan, PM Modi tweeted, "Sheikh Mohammed is a visionary leader. His visit will add new vigour & momentum to comprehensive strategic partnership between India & UAE."

Though the bilateral discussions will be held on Thursday, a round of informal talks was held soon after Mr Al Nahyan's arrival. Foreign minister Sushma Swaraj also met him to discuss issues of mutual interest.

This time, 16 agreements are expected to be signed, some of them in new areas, including production of defence equipment in India, strategic partnership in security, counter-terrorism, cooperation in nuclear and space sector and renewable energy, said the Ministry of External Affairs.

It is expected that the Gulf nation would like to invest significantly in India from its sovereign wealth fund of around $800 billion.

India is also hoping for a deeper and more comprehensive strategic engagement with UAE, a key ally of Pakistan. The decision was made during PM Modi's two-day visit to UAE in August, the first by an Indian prime minister in 34 years.

Ways to contain radicalism, stepping up counter-terrorism cooperation and dealing with the ISIS are likely to figure prominently in talks between Mr Al Nahyan and PM Modi on Thursday.

Mr Al Nahyan is accompanied by a delegation of cabinet ministers, senior officials and a 100-member business delegation which will be attending the Make in India programme in Mumbai.

UAE is India's third largest trade partner. During PM Modi's visit to UAE in August, it was decided to increase the current volume of trade by 60 per cent over the next five years.

India imports about 270,000 barrels of crude oil a day, with the UAE being the sixth-largest supplier.