Saudi Arabia And India Enhance Strategic Partnership Through Increased Trade And Investment

The relationship between Saudi Arabia and India has grown significantly over the past 75 years, evolving into a strong partnership in areas such as politics, trade, and clean energy. Frequent high-level meetings have played a key role in strengthening these ties. In February 2014, King Salman bin Abdulaziz Al Saud, then Crown Prince, visited India and met with former Indian President Pranab Mukherjee.

A major development occurred in 2019 when the Saudi-Indian Strategic Partnership Council was established. Co-chaired by HRH the Crown Prince and the Indian Prime Minister, this council aims to align Saudi Arabia's Vision 2030 with India's initiatives like "Make in India" and "Smart Cities." This collaboration seeks to enhance cooperation across various sectors.

In April 2016, Indian Prime Minister Narendra Modi visited Riyadh, where he signed several agreements with the Custodian of the Two Holy Mosques. These included a comprehensive cooperation agreement and a draft memorandum of understanding. The discussions focused on expanding cooperation in political, security, economic, investment, agricultural, energy, cultural, and technological domains.

Economically, India is Saudi Arabia's second-largest trading partner. Conversely, Saudi Arabia ranks as India's fifth-largest partner and its second-largest oil supplier. Bilateral trade volume reached $39.9 billion in 2024. The Kingdom's favourable investment climate attracted significant Indian investments totalling $4 billion in 2023.

Saudi companies like Saudi Aramco and SABIC have invested heavily in India. Their projects have contributed to the total value of Saudi investments reaching $10 billion. Meanwhile, major Indian firms have established a strong presence in Saudi Arabia. The 2023 Saudi-India Investment Forum saw the signing of 53 agreements and memoranda of understanding.

Energy Cooperation

Energy remains central to their strategic partnership. Both nations share a vision for global oil market stability and energy security. Saudi Arabia is a committed supplier of crude oil to India. Additionally, data shows that Saudi Arabia has provided over $193.8 million in aid to India across sectors like education and health.

HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud met Modi during the G20 Summit in China in September 2016 to discuss enhancing bilateral cooperation further. They met again at the G20 Summit in Argentina in November 2018 to explore more opportunities for collaboration.

High-Level Engagements

The Custodian of the Two Holy Mosques hosted Modi for bilateral talks in October 2019 during his visit to Saudi Arabia. In September 2023, HRH the Crown Prince visited India at Modi's invitation to deepen their strategic partnership further and discuss pressing regional and international issues.

The Indian Prime Minister's visit today highlights Saudi Arabia's significant political and economic influence globally. This ongoing engagement underscores both countries' commitment to strengthening their partnership across multiple domains.

With inputs from SPA