INDIA
- SAUDI ARABIA RELATIONS – INTERNATIONAL
News:
India, Saudi Arabia
discuss treaty on mutual assistance for criminal investigations
What's
in the news?
●
India and Saudi Arabia are in talks to
sign a Mutual Legal Assistance Treaty
(MLAT) to obtain formal assistance from each other in investigations
related to criminal cases.
Key
takeaways:
●
Saudi Arabia is only among a dozen other
countries that does not have either an MLAT or any other bilateral agreement
with India to facilitate such investigations.
●
India
has so far signed MLATs with 45 countries, and is also in talks to finalise
MLATs with Italy and Germany.
What
is MLAT?
●
According to the Ministry of Home Affairs
(MHA), an MLAT is “a mechanism whereby countries cooperate with one another in
order to provide and obtain formal assistance in prevention, suppression,
investigation and prosecution of crime to ensure that the criminals do not
escape or sabotage the due process of law for want of evidence available in
different countries.”
●
In the past, Saudi Arabia has deported
several terror suspects on India’s request.
Significance:
●
The signing of the treaty would help in getting a conviction for an accused in a
court of law, based on evidence gathered through the mutual agreement.
●
MLATs are used to send a formal request
for investigation in foreign countries for collection of evidence, examination
of witnesses and execution of orders of attachment and confiscation of assets.
India
-Saudi Arabia bilateral ties:
1.
Strategic Partner:
●
Saudi Arabia has been a strategic partner
of India since the signing of the Riyadh
Declaration in 2010.
2.
Trade relations:
●
India needs the Gulf countries, Saudi
Arabia in particular, to invest in the country and power its economic recovery.
●
During FY22 (April-December), bilateral
trade was valued at $29.28 billion. During this period, India’s imports from
Saudi Arabia were valued at $22.65 billion and exports to Saudi Arabia were
worth $6.63 billion.
3.
Energy security:
●
Saudi
Arabia is the third largest oil exporter to India.
●
More than 18 percent of India’s crude oil
imports are sourced from Saudi Arabia.
●
32% LPG requirements of India have been
fulfilled by Saudi Arabia.
4.
Strategic significance:
●
Saudi Arabia is geographically located
near the Strait of Hormuz.
●
This is the world's most important oil
artery and strategically important for India’s energy security.
5.
Against Pakistan:
●
Saudi Arabia has a substantial influence
over Pakistan.
●
India can use this influence to bring
Pakistan to negotiating table for talks on terrorism and bilateral relations.
6.
Economic and investment relations:
●
There are also around 745 Indian companies
registered either as joint ventures or as 100% owned subsidiaries in Saudi
Arabia, with investments of around $2 billion.
●
Saudi has one of the largest Sovereign Fund in the World. It is an important nation to
invest in India particularly in the National
Infrastructure and Investment fund (NIIF). India needs funds for its
infrastructure sector.
●
India
is the largest recipient of foreign remittance from West Asia.
●
Saudi
Aramco and UAE’s ADNOC are jointly participating in the
development of the US $ 44 billion ‘West Coast Refinery & Petrochemicals
Project Limited’ in Raigad, Maharashtra.
7.
Exports:
●
Other areas of interest for joint
collaboration are fertilisers, food
security, infrastructure, renewable energy, etc.
●
ICT,
healthcare and pharmaceuticals, electronic and manufacturing facilities, and
housing are other potential areas of enhanced cooperation.
8.
Cultural relations:
●
The Saudi Kingdom facilitates Hajj pilgrimage to over 1,75,000
Indians every year. This is one of the other reasons why Saudi Arabia is an
important country for India.
●
Around 11 million Indians are working in
West Asia.
9.
Strategic Partnership Council:
●
India-Saudi Strategic Partnership Council
was formed to coordinate on strategically important issues.
●
The council will be headed by the Prime Minister and Crown Prince Mohammed and will meet
every two years.
●
India is the fourth country with which
Saudi Arabia has formed such a strategic partnership, after the UK, France and
China.
Why
is Saudi Arabia important for India?
●
Around
18% of crude oil and 32% of LPG requirements are fulfilled by
Saudi Arabia.
●
Saudi Arabia is the largest reserve of
crude oil and biggest producer in OPEC organization.
●
Saudi Arabia has a higher influencing capacity among Muslim countries, through this
India can influence Pakistan.
●
Peaceful relation with Saudi Arabia is the
prerequisite for healthy India-West Asia relation.
●
Security
of 4 million Indian workers in Saudi Arabia.
●
India needs Saudi Arabia to support
India’s efforts against terrorism and against Pakistan. Saudi Arabia is an
influential nation in the Middle East and Muslim World. Riyadh has largely
shown an understanding of India’s terrorism-related concerns, and has agreed to
work with India in countering the global menace.
●
While energy security continues to
dominate the agenda, security and defense cooperation are becoming more
important in the India-Saudi relationship.
India’s
Look West policy:
●
Cold war period: India remained a passive
player though maintained close economic cooperation with both Saudi Arabia and
Iran.
●
India adopted the Look West policy in
2005.
●
India now follows a Secular and Non- Aligned Policy.
●
Focus is on business-to-business and people-to-people relationships.
●
There is a focus on maritime diplomacy.
●
Relationships
today are driven more by economic calculation than political rhetoric.
●
Though India has a separate look West
policy, India prefers to maintain relations with West Asia countries
separately.
Challenges:
●
The
politics of the Middle East is complex and multidimensional so requires a
collective and united effort.
●
The Saudi
Arabia-Turkey rivalry could create problems for India.
●
Saudi
Arabia-Iran Rivalry: India has close relations with both Saudi
Arabia and Iran. However, India is yet to work out a way to balance its ties
with Iran on the one hand and Saudi Arabia and the United States on the other.
Way
forward:
●
Need for a balance policy in terms of strategic, defence and economic partnership.
●
Diversification
of trade relations beyond crude oil and LPG
●
Collaboration
on handling terrorism through sharing of military insights and
increasing joint military exercises.