Modi, who is the first Indian prime minister to visit the Arab nation in 34 years, said that both India and UAE have agreed to dismantle the terror infrastructure.

Meanwhile, Chacko said that India and the UAE have always had good relations and added that there was nothing new in what Prime Minister has said or done during his two-day visit to the gulf nation.

Hours before the speech, Modi met Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum and held talks with Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan.

However, some Indian opposition politicians are cautious in their expectations of the prime minister’s visit to the region.

“This false distinction between good terrorism and bad terrorism will not work”, he said ahead of his return to India late Monday.

The UAE and India will also facilitate participation of Indian companies in infrastructure development in UAE and will promote a strategic partnership in the energy sector.

More than 2.5 million Indians – comprising a third of UAE’s population – live in the federation. Curiously, the joint statement also included a clause stating that the UAE would “Cooperate in manufacture of defence equipment in India”, in line with the Modi government’s “Make in India” initiative. “The UAE could be a partner in part of this future growth of India”, he said.

The Prime Minister said he would try his best to resolve all outstanding issues in the economic sphere.

Modi said India was proud of expatriate Indians living and working in the the Gulf Arab state.

The two sides also agreed to expand their cooperation on defense matters.

Modi’s $1 trillion target, which Swarup confirmed, probably refers to “the infrastructure requirement for India”, Dharmakirti Joshi, chief economist for Crisil Ltd., said by phone from Mumbai.

During the talks at the “Emirates Palace” hotel where Modi is staying, the two sides emphasised on expanding engagement between the two countries, holding that there was a huge untapped opportunities to step up economic cooperation.

India is the UAE’s second largest trade partner; the UAE is number three on the corresponding Indian list.

Prime Minister Modi has greeted the Malayali community at the start of Chingam, the first month of the Malayalam New Year, which sees the festival of Onam falling in this month.

On Sunday, Modi visited the Sheikh Zayed Grand Mosque in Abu Dhabi, the third largest in the world and also interacted with Indian workers.