India-Saudi Arabia Relations

Syllabus: International Relations

Source: IE

Context: Prime Minister of India visit to Saudi Arabia aims to strengthen the growing India-Saudi Strategic Partnership, with new agreements expected in trade, defence, and investment under the Strategic Partnership Council framework.

About India-Saudi Arabia Relations:

• Historical Background of India-Saudi Arabia Relations

• Establishment of Diplomatic Ties: Formal diplomatic relations were established in 1947.

• Major Milestones: Delhi Declaration (2006) during King Abdullah’s visit laid the foundation for a strategic partnership. Riyadh Declaration (2010) during PM Manmohan Singh’s visit elevated the relationship to a new strategic level.

• Delhi Declaration (2006) during King Abdullah’s visit laid the foundation for a strategic partnership.

• Riyadh Declaration (2010) during PM Manmohan Singh’s visit elevated the relationship to a new strategic level.

• Recent Developments: PM Modi’s visits in 2016, 2019, and 2025 have expanded the scope to energy, defence, space, and culture. Saudi Crown Prince Mohammed bin Salman’s visits to India in 2019 and 2023 further deepened ties.

• PM Modi’s visits in 2016, 2019, and 2025 have expanded the scope to energy, defence, space, and culture.

• Saudi Crown Prince Mohammed bin Salman’s visits to India in 2019 and 2023 further deepened ties.

Existing Opportunities for India-Saudi Arabia:

• Economic Partnership: Saudi Arabia is India’s 5th largest trading partner with bilateral trade of USD 42.98 billion (FY 2023-24). Huge investment potential, including PIF’s USD 10 billion investment in sectors like retail, technology, and agriculture.

• Saudi Arabia is India’s 5th largest trading partner with bilateral trade of USD 42.98 billion (FY 2023-24).

• Huge investment potential, including PIF’s USD 10 billion investment in sectors like retail, technology, and agriculture.

• Energy Cooperation: Saudi Arabia remains India’s 3rd largest crude oil supplier, contributing 3% of India’s oil imports in 2023-24. Collaboration in renewables through the International Solar Alliance (ISA).

• Saudi Arabia remains India’s 3rd largest crude oil supplier, contributing 3% of India’s oil imports in 2023-24.

• Collaboration in renewables through the International Solar Alliance (ISA).

• Defence and Security Ties: Increasing defence exchanges, naval exercises like Al Mohed Al Hindi, and joint land forces exercise Ex-Sada Tanseeq-I held in 2024.

• Cultural and People-to-People Linkages: Indian diaspora in Saudi Arabia numbers 7 million, acting as a vital socio-economic bridge. Cultural MoUs, yoga cooperation, and growing tourism and sports engagement.

• Indian diaspora in Saudi Arabia numbers 7 million, acting as a vital socio-economic bridge.

• Cultural MoUs, yoga cooperation, and growing tourism and sports engagement.

• Strategic Convergence: Alignment between Vision 2030 (Saudi Arabia) and Viksit Bharat 2047 (India) fosters synergies in infrastructure, innovation, and human capital development.

Challenges in India-Saudi Arabia Relations:

• Geopolitical Instability: Regional conflicts like the Yemen War or Iran-Saudi tensions could affect bilateral dynamics.

• Competition with China: Saudi Arabia’s parallel engagement with China, including joining BRICS Plus, could create strategic balancing challenges for India.

• Oil Dependence: India’s high dependency on Saudi oil (14.3%) makes it vulnerable to energy market fluctuations.

• Labour Issues: Issues related to the rights and welfare of Indian workers in Saudi Arabia occasionally surface, needing sustained consular intervention.

• Cultural Sensitivities: While reforms in Saudi Arabia are underway, navigating religious and cultural norms remains delicate for expanding people-to-people relations.

Way Forward:

• Diversify Economic Cooperation: Move beyond oil to sectors like fintech, renewable energy, food security, and digital economy.

• Strengthen Defence and Security Ties: Enhance cooperation in defence production, cyber security, and counter-terrorism training.

• Promote People-to-People Connect: Expand educational exchanges, cultural festivals, and tourism promotion between both nations.

• Support Saudi Arabia’s Vision 2030: Invest in Saudi megaprojects like NEOM city and emerging sectors like entertainment and tourism to leverage growth opportunities.

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

Conclusion:

India-Saudi Arabia ties have matured into a multifaceted strategic partnership driven by strong political will and economic complementarities. The current visit strengthens this trajectory, promising greater cooperation in emerging sectors critical for both nations’ growth stories.

• “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC-2018)