Published on 28 Jan 2025
Latest Developments
✔ Prince Mohammed attended the G20 Leaders' Summit in New Delhi, where he, along with Prime Minister Narendra Modi and President Joe Biden, unveiled the India-Middle East-Europe Economic Corridor. This extensive infrastructure project aims to link India with Europe through West Asia and could potentially compete with China's Belt and Road Initiative.
✔ An agreement between the Central Vigilance Commission of India and the Saudi Oversight and Anti-Corruption Authority, indicating their commitment to combating corruption and enhancing transparency.
✔ An agreement between the Indian Exim Bank and the Saudi Exim Bank, fostering economic cooperation and facilitating trade and investments between the two nations.
✔ An agreement between the National Institute of Technology of India and the Saline Water Conversion Corporation of Saudi Arabia, signifying cooperation in fields related to technology and water management.
✔ A pact between the National Archives of India and the King Abdulaziz Foundation of Saudi Arabia, which aims to promote collaboration in archival research and conferences, strengthening cultural and historical ties between the two countries.
✔ Agreement to upgrade their hydrocarbon energy partnership to a comprehensive energy partnership covering renewable, petroleum, and strategic reserves.
✔ Agreement to establishing a joint task force for $100 billion in Saudi investment in India.
✔ Both nations decided to explore the possibility of conducting trade in local currencies.
✔ Accelerated negotiations for a free trade agreement between India and the Gulf Cooperation Council, which includes Saudi Arabia.
✔ Conferred the King Abdulaziz Sash, Saudi Arabia's highest civilian honor, on the Indian Prime Minister, underscoring the significance of the bilateral relationship.
Areas of Cooperation
✔ Economy
● Bilateral Trade: India is Saudi Arabia's second-largest trade partner, while Saudi Arabia is India's fourth-largest trade partner.
o Example: In FY 2022-23, bilateral trade reached $52.76 billion, constituting 4.53% of India's total trade in that fiscal year.
● Investments: There were 2,783 Indian companies registered in Saudi Arabia, with total investments worth approximately $2 billion.
● Diaspora: The Indian community has a substantial presence, with over 2.4 million members. They are highly regarded for their contributions to Saudi Arabia's development and are viewed as a vital link between the two nations.
✔ Energy
● Crude Oil Supply: In FY23, Saudi Arabia ranked as India's third-largest supplier of crude oil and petroleum products.
● LPG Imports: India's LPG imports from Saudi Arabia in FY23 constitute 11.2% of its total petroleum product imports.
✔ Security
● High-Level Visits: In December 2020, then Army Chief General Manoj Mukund Naravane's visit to Saudi Arabia marked a significant milestone in strengthening defense ties.
● Naval Cooperation: Extensive naval cooperation exists between the two countries.
o
Example: Bilateral naval exercise, Al Mohed
al Hindi, have been successfully conducted.
Saudi Arabia holds a crucial position as one of India's foremost strategic partners. Both countries, known for their rapid economic growth, share a vital partnership that contributes to regional stability and prosperity.
World Affairs
Saudi Arabia
West Asia
IMEC
General Studies Paper 2
International Relations