INDIA-SAUDI RABIA RELATIONSHIP: INTERNATIONAL RELATION

INDIA-SAUDI RABIA RELATIONSHIP: INTERNATIONAL RELATION

NEWS:  State Visit of Prime Minister to Saudi Arabia

WHAT’S IN THE NEWS?

The 2024 India–Saudi Strategic Partnership Council meeting expanded bilateral cooperation in energy, defence, technology, and investment. It reinforced people-to-people ties and enhanced strategic alignment under India’s ‘Look West’ policy.

Context: India’s Prime Minister’s State Visit to Saudi Arabia

  • The Indian PM paid a two-day state visit to Saudi Arabia and co-chaired the 2nd meeting of the India–Saudi Arabia Strategic Partnership Council (SPC) with Crown Prince Mohammed bin Salman in Jeddah.
  • The visit highlighted the expanding strategic depth and multi-sectoral cooperation between the two nations, building on a rapidly growing partnership since 2016.

Key Outcomes of the Visit

  • Energy Cooperation
  • India and Saudi Arabia sealed an agreement to establish two oil refineries in India, reinforcing the traditional energy partnership.
  • India, which imports over 85% of its crude oil needs, benefits from Saudi Arabia’s role as a leading oil supplier and strategic energy partner.
  • Joint efforts also include collaboration on petrochemicals, energy storage, grid automation, and green hydrogen transport.
  • Expansion of Strategic Partnership Council (SPC)
  • The SPC, established in 2019, was strengthened by the addition of two new ministerial committees: one on defence and another on tourism.
  • These additions expand the council’s existing focus beyond economy and security to include soft power and cultural diplomacy.
  • Economic and Trade Agreements
  • Both countries vowed to expedite the India-Saudi Bilateral Investment Treaty, signaling intent to boost FDI and joint ventures.
  • Discussions were launched to conclude a Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC), where Saudi Arabia is a key member.
  • Technology and Innovation Cooperation
  • A preliminary pact was signed on cooperation in space activities for peaceful purposes, enhancing scientific and technological collaboration.
  • The countries agreed to partner in emerging domains such as artificial intelligence, semiconductors, and cybersecurity, aligning with India's Digital India and Saudi Arabia’s Vision 2030 goals.
  • Security and Defence Cooperation
  • The visit reaffirmed commitments to collaborate on combating terrorism, drug trafficking, transnational crime, and maritime security.
  • India and Saudi Arabia agreed to deepen cooperation on securing maritime borders in the Indian Ocean and Gulf region.
  • Saudi Arabia continues to repatriate Indian fugitives, underlining strong counterterrorism cooperation.

Bilateral Defence Relations

  • Recent developments include:
  • SADA TANSEEQ: The first joint land forces exercise
  • AL MOHED AL HINDI: Two rounds of naval exercises
  • In 2024, Saudi Arabia signed a defence export deal worth USD 225 million with India, reflecting growing trust in India’s defence manufacturing sector.

Economic Engagement

  • In FY 2023–24, bilateral trade stood at approximately USD 43 billion.
  • India is Saudi Arabia’s 2nd largest trade partner, while Saudi Arabia is India’s 5th largest trading partner.
  • The sectors of cooperation span energy, petrochemicals, fertilizers, food processing, and infrastructure.
  • India seeks investments from Saudi Arabia’s Public Investment Fund (PIF) into India’s National Investment and Infrastructure Fund (NIIF).
  • Saudi Arabia has pledged investment commitments up to USD 100 billion in India.

Strategic and Regional Significance

  • The 2010 Riyadh Declaration raised bilateral relations to the level of a Strategic Partnership, encouraging high-level consultations on counterterrorism, radicalization, and regional stability.
  • Saudi Arabia is a key stakeholder in the India–Middle East–Europe Economic Corridor (IMEEC), a multi-modal, cost-effective ship-to-rail corridor unveiled in 2023.
  • Cooperation is also seen in food security, renewable energy, and water sustainability—sectors of mutual interest in a climate-stressed future.

People-to-People and Cultural Ties

  • Over 2.7 million Indian expatriates live and work in Saudi Arabia, forming one of the largest Indian diasporas in the Gulf region.
  • Annual facilitation of Hajj pilgrimage strengthens cultural and religious diplomacy between the two nations.
  • Continuous engagement on labour welfare, remittance systems, and skill training remains a priority in bilateral talks.

Strategic Significance of Saudi Arabia to India

  • “Look West” Policy: Saudi Arabia is central to India's “Look West” strategy that seeks deeper strategic engagement with West Asia.
  • Geo-political leverage: Saudi Arabia’s influence over Pakistan could be used to dissuade anti-India terror activities.
  • Middle Power Dynamics: As Saudi Arabia seeks strategic autonomy in foreign policy, it increasingly sees India as a reliable civilisational and economic partner.

Conclusion

  • The latest state visit has strengthened the comprehensive strategic partnership between India and Saudi Arabia, adding depth to defence, economic, energy, and technological cooperation.
  • With shared interests in security, regional connectivity, energy security, and emerging technologies, the relationship is poised to become a pillar of India’s West Asia policy.

 

Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2123660#:~:text=The%20second%20leaders%20meeting%20of,22%20April%202025%20in%20Jeddah.