Robust India-Saudi Arabia Strategic Partnership set for major boost during PM Modi's Riyadh visit next week

New Delhi, April 19 (IANS) India and Saudi Arabia are expected to further strengthen their multifaceted partnership during Prime Minister Narendra Modi's two-day visit to the Kingdom, next week.

The April 22-23 visit at the invitation of Saudi Crown Prince and Prime Minister Mohammed bin Salman will be PM Modi's third to the Kingdom after his previous visits in 2016 and 2019. It follows the State Visit of Prince Mohammed bin Salman to New Delhi in September 2023 to attend the G20 Summit and co-chair the first meeting of the India-Saudi Arabia Strategic Partnership Council.

"India and Saudi Arabia share close and friendly ties with a long history of socio-cultural and trade contacts. As strategic partners, the two countries share strong bilateral relations across various areas including political, defence, security, trade, investment, energy, technology, health, education, culture and people-to-people ties," read a statement issued by the Ministry of External Affairs (MEA).

"India's relations with the Kingdom have evolved into a stronger and enduring partnership in the past decade, expanding into many strategic domains, with growing investment commitments, broadening of defence cooperation and intensive high-level exchanges across sectors," it added.

The MEA stated that the visit of Prime Minister Modi reflects the importance India attaches to its bilateral relationship with the Kingdom of Saudi Arabia and it will provide an opportunity to further deepen and strengthen the multi-faceted partnership, as well as to exchange views on various regional and international issues of mutual interest.

With 'Neighbourhood First' continuing to be the guiding vision for the Modi government's foreign policy, the Prime Minister has mentioned before how India's relations with Saudi Arabia are one of the most important bilateral relationships in the extended neighbourhood.

India and Saudi Arabia established diplomatic relations in 1947 and it was 2010 that the bilateral relationship was elevated to a Strategic Partnership.

However, the partnership has received a major boost over the last decade, especially after PM Modi's landmark visit to Riyadh in April 2016 that led to an enhanced and comprehensive cooperation in the political, economic, security and defence realms. During the visit, King Salman conferred the Kingdom's highest civilian honour, the 'King Abdulaziz Sash', on PM Modi.

Both countries decided to establish a Strategic Partnership Council (SPC) to steer the India-Saudi Arabia relationship during Prime Minister Modi's State visit to Saudi Arabia in October 2019.

The SPC has two pillars - the Political-Security-Socio-Cultural (PSSC) and Economic and Investment. While the External Affairs Minister and the Saudi Foreign Minister co-chair the PSSC, the economic pillar is co-chaired by India's Commerce and Industry Minister and the Energy Minister on the Saudi side.

There are also eight Joint Working Groups (JWGs) and sub-committees under the two pillars which conduct regular official level meetings.

The first Summit of the SPC was held in New Delhi in September 2023 and was co-chaired by PM Modi and visiting Crown Prince Mohammad bin Salman.

Beginning 2024, there have been 11 ministerial-level visits between both nations. The Saudi Foreign Minister and Saudi Minister of Industry and Mineral Resources visited India in November 2024 and February 2025, respectively.

Riyadh is also the seat of the Gulf Cooperation Council (GCC) and India and the GCC Secretariat have maintained good relations and regular dialogues at official level. In September 2024, EAM S. Jaishankar visited Riyadh to co-chair the first India-GCC Ministerial Meeting.

On the economic front, Saudi Arabia remains India's fifth largest trade partner while India is Saudi Arabia’s second largest trade partner. During the Financial Year 2023-24, India's imports from Saudi Arabia reached US $31.42 billion and exports to Saudi Arabia were worth US$ 11.56 billion.

Major commodities of export from India to Saudi Arabia include engineering goods, rice, petroleum products, chemicals, textiles, food products, ceramic tiles. whereas, major commodities of import for India from Saudi Arabia are crude oil, LPG, fertilizers, chemicals, plastic and products, etc.

The total Saudi investment in India including that of PIF, other Saudi companies and Saudi backed Vision Fund, has been about USD 10 billion. Major investments include PIF's investment in Reliance Jio Platforms, Reliance Retail Ventures Limited, Oyo Hotels, Healthtech Healthifyme, etc. Saudi Agricultural and Livestock Investment Company (SALIC) has also acquired stakes in Daawat Foods Limited. SABIC has invested over USD 100 million in its technology and innovation Centre in Bengaluru.

Among the major Saudi investors in India are ARAMCO, Zamil Group, Al Fanar and Petromin. Indian investment in Saudi Arabia has also increased in recent years reaching approximately USD 3 billion in August 2023. These investments are across diverse sectors such as management and consultancy services, construction projects, telecommunications, information technology, financial services and software development, pharmaceuticals, etc. Many Indian companies and corporate groups such as L&T, TATA, Wipro, TCS, TCIL, Shapoorji and Pallonji, Air India, Go Air, Indigo, and SpiceJet, etc, have established a robust presence in Saudi Arabia.

Saudi Arabia remained India's third largest Crude and Petroleum products sourcing destination for Financial Year (FY) 2023-24. India imported 33.35 MMT of crude oil in FY 2023-24 from Saudi Arabia, accounting for 14.3 per cent of India's total crude oil imports. In FY 2023-24, Saudi Arabia was the third largest LPG sourcing destination for India, accounting for 18.2 per cent of the total LPG imports of India for 2023-24. Saudi Arabia is also one of India's major suppliers of fertilizers, particularly it is the second largest source of DAP for India.

On the diaspora front, the Indian community in Saudi Arabia is 2.7 million strong and acts as a living bridge between the two countries. Indian diaspora contribution to the economic development of Saudi Arabia is widely recognised. Number of Indians in Saudi Arabia is increasing steadily. Over the last year, an estimated one lakh Indians came to Saudi Arabia for employment.

The annual Haj pilgrimage and Umrah is another important component of India-Saudi bilateral relations. India's Haj quota stands at 175,025 pilgrims.

--IANS

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