PM Narendra Modi paid a state visit to Saudi Arabia and co-chaired the 2nd meeting of the India–Saudi Strategic Partnership Council (SPC).
Key Outcomes of the Visit
- New Ministerial Committees:
- Defence Cooperation
- Tourism & Cultural Cooperation
- Now SPC has 4 verticals:
- Political, Consular & Security
- Defence Cooperation
- Economy, Energy, Investment & Tech
- Tourism & Cultural Cooperation
- High Level Task Force on Investment (HLTF):
- Saudi commitment of USD 100 billion investment in India.
- Progress on setting up two refineries and reforms in taxation.
- Key MoUs Signed:
- Space Cooperation – Peaceful use of space.
- Health Sector – Collaborative healthcare initiatives.
- Anti-Doping – Agreement with NADA on education & awareness.
- Postal Cooperation – Enhancing parcel services between both nations.
Evolution of Bilateral Relations
- Diplomatic Ties Since 1947.
- Strategic Partnership via:
- Delhi Declaration (2006) and Riyadh Declaration (2010)
- SPC formation in 2019 during Modi’s 2nd visit
Economic & Energy Ties
- Trade:
- India: Saudi’s 2nd largest trade partner
- Saudi: India’s 5th largest
- FY 2023–24: USD 42.98 billion bilateral trade
- Indian exports: USD 11.56 billion
- Imports (mainly oil): USD 31.42 billion
- Investment:
- Indian FDI in Saudi: ~USD 3 billion
- Saudi FDI in India: ~USD 10 billion (mainly PIF)
- Cumulative Saudi FDI (2000–24): USD 3.22 billion
- Energy:
- 3rd largest source of India’s crude oil (14.3% share)
- Major LPG supplier (18.2% share)
Defence & Security Cooperation
- Joint Military Exercises:
- EX-SADA TANSEEQ (2024) – Joint land forces drill in India
- Al Mohed Al Hindi – Bilateral naval exercise
- Cooperation on counter-terrorism and cybersecurity
Cultural and People-to-People Ties
- Haj Agreement 2024: Quota for 1.75 lakh Indian pilgrims
- Support for women pilgrims without Mehram
- Promotion of Yoga in Saudi Arabia:
- Yoga recognized as a sport (2017)
- Padma Shri to Nouf Al-Marwaai (2018)
- Indian diaspora: 2.6 million+ in Saudi Arabia (largest expatriate group)
Challenges in Bilateral Relations
- Labour Issues:
- Abuse, wage delay, and exploitation of Indian workers
- Kafala system restricts worker rights and mobility
- Trade Deficit:
- USD 20 billion in 2023–24 due to oil dependency
- Vulnerability to global oil price shocks
- Geopolitical Challenges:
- Saudi foreign policy actions (Yemen, Syria, Qatar blockade)
- Saudi-Iran rivalry – strategic balancing challenge for India
- Growing Saudi ties with China & Pakistan
Future Potential & Strategic Opportunities
Green Energy Cooperation
- Joint ventures in solar and green hydrogen
- Leverage International Solar Alliance (ISA) for mega solar parks
- Tap Saudi deserts for clean energy exports
Technology & Innovation Partnership
- Combine India’s IT/AI strength with Saudi’s Vision 2030
- Proposal: AI & FinTech Innovation Lab in Riyadh or Bengaluru
India–Middle East Economic Corridor (IMEC)
- Strategic route for trade, logistics, and energy connectivity
- Can transform regional trade dynamics
Regional Peace & Multilateral Engagement
- Use GCC platforms to mediate regional tensions
- Align diplomatic efforts with Saudi’s evolving foreign policy
India–Saudi Arabia relations are undergoing a strategic transformation, moving beyond oil to deeper defence, energy, cultural, and technology cooperation. With mutual respect and expanding common ground, both nations are poised to play a pivotal role in regional stability and global economic leadership.
