The visit of the Prime Minister of India to Saudi Arabia is intended to enhance the expanding India-Saudi Strategic Partnership

Historical Context of India-Saudi Arabia Relations

Formation of Diplomatic Relations: Diplomatic ties were officially established in 1947.

Key Milestones:

The Delhi Declaration (2006), made during King Abdullah’s visit, set the groundwork for a strategic partnership.

The Riyadh Declaration (2010), during Prime Minister Manmohan Singh’s visit, advanced the relationship to a higher strategic tier.

Recent Progress:

Prime Minister Modi's visits in 2016, 2019, and 2025 have broadened collaboration in areas such as energy, defense, space, and culture.

Crown Prince Mohammed bin Salman’s visits to India in 2019 and 2023 have further strengthened the bilateral relationship.

Current Opportunities for India-Saudi Arabia:

Economic Collaboration:

Saudi Arabia ranks as India’s fifth-largest trading partner, with bilateral trade reaching USD 42.98 billion in the fiscal year 2023-24.

There is significant investment potential, highlighted by the Public Investment Fund’s USD 10 billion investment in sectors including retail, technology, and agriculture.

Energy Collaboration:

Saudi Arabia is India’s third-largest supplier of crude oil, accounting for 3% of India’s oil imports in 2023-24.

There is ongoing collaboration in renewable energy through the International Solar Alliance (ISA).

Defense and Security Cooperation: Enhanced defense exchanges, naval exercises such as Al Mohed Al Hindi, and the joint land forces exercise Ex-Sada Tanseeq-I conducted in 2024.

Cultural and People-to-People Connections:

The Indian diaspora in Saudi Arabia, numbering 7 million, serves as a crucial socio-economic link.

Cultural memorandums of understanding, yoga initiatives, and increasing engagement in tourism and sports are notable developments.

Strategic Alignment: The convergence of Saudi Arabia’s Vision 2030 and India’s Viksit Bharat 2047 promotes synergies in infrastructure, innovation, and human capital development.

Challenges in India-Saudi Arabia Relations:

Geopolitical Instability: Ongoing regional conflicts, such as the Yemen War and tensions between Iran and Saudi Arabia, may influence the dynamics of their bilateral relationship.

Competition with China: Saudi Arabia's simultaneous engagement with China, including its participation in BRICS Plus, poses strategic balancing challenges for India.

Oil Dependence: India's significant reliance on Saudi oil (14.3%) renders it susceptible to fluctuations in the energy market.

Labour Issues: Concerns regarding the rights and welfare of Indian workers in Saudi Arabia occasionally arise, necessitating ongoing consular support.

Cultural Sensitivities: Although reforms are being implemented in Saudi Arabia, navigating the complex religious and cultural norms remains a sensitive issue for enhancing people-to-people relations.

Way Forward:

Diversify Economic Cooperation: Expand collaboration beyond oil to include sectors such as fintech, renewable energy, food security, and the digital economy.

Strengthen Defence and Security Ties: Foster enhanced cooperation in areas like defense production, cybersecurity, and counter-terrorism training.

Promote People-to-People Connect: Increase educational exchanges, cultural festivals, and tourism initiatives between the two nations.

Support Saudi Arabia’s Vision 2030: Invest in major Saudi projects like NEOM city and emerging sectors such as entertainment and tourism to capitalize on growth opportunities.

Build Multilateral Collaboration: Collaborate closely with Saudi Arabia in multilateral forums like G20, BRICS+, ISA, and regional platforms to advocate for a multipolar, rule-based global order.

Conclusion:

The relationship between India and Saudi Arabia has evolved into a comprehensive strategic partnership, characterized by strong political commitment and economic synergies. The current visit reinforces this positive trajectory, paving the way for enhanced cooperation in emerging sectors vital to the growth narratives of both countries.