Modi's Visit to Jeddah: 5 Key Aspects of India-Saudi Arabia Relation

Prime Minister Narendra Modi is set to visit Jeddah, the commercial hub of Saudi Arabia, on Tuesday, April 22, at the invitation of His Royal Highness Crown Prince and Prime Minister Mohammed bin Salman. This visit highlights the continued commitment of both nations to strengthen their bilateral relationship.

Prime Minister Narendra Modi, shakes hand with Saudi Crown Prince Mohammed bin Salman. AP

During the trip, Prime Minister Modi and Crown Prince Mohammed bin Salman will co-chair the second session of the India-Saudi Arabia Strategic Partnership Council. This important platform aims to boost collaboration across various sectors. The visit focuses on enhancing economic cooperation, advancing defense ties, and addressing critical regional political issues, emphasizing the need to fortify the enduring relationship between India and the modern Kingdom.

Here are five key diplomatic ties between India and Saudi Arabia:

1. Strategic Partnership Council (SPC)

Founded in 2019 by Prime Minister Modi and Crown Prince Mohammed bin Salman, this platform forms the cornerstone of bilateral relations between the two countries. The SPC fosters high-level diplomatic interactions and promotes cooperation and collaboration across multiple sectors. "Strategic Partnership Council helped India address its expectations and aspirations. In these four years, it has emerged as an effective medium to further strengthen our strategic partnership." PM Modi mentioned on his official page.

2. Economic and Trade Relations

The trade relationship between the two countries has progressively strengthened over time, with India becoming Saudi Arabia's second-largest trade partner, while Saudi Arabia ranks as the fifth-largest trading partner for India. According to the Ministry of External Affairs, bilateral trade reached USD 42.98 billion in the fiscal year (FY) 2023-24. Indian exports amounted to USD 11.56 billion, while imports totaled USD 31.42 billion, covering a wide range of sectors, including automobiles and petroleum.

3. Energy Collaboration

Energy continues to be a cornerstone of the India–Saudi Arabia bilateral ties, with Saudi Arabia serving as India's third-largest source of crude oil and petroleum. As per the Ministry of External Affairs, India imported 33.35 million metric tonnes (MMT) of crude oil from Saudi Arabia in FY 2023–24. Furthermore, Saudi Arabia was the third-largest supplier of liquefied petroleum gas (LPG), contributing 18.2% of India’s total LPG imports during the same period.

4. Defence Relations

Saudi Arabia and India, as maritime neighbors, have strengthened their naval collaboration through joint exercises. The inaugural exercise, ‘Al Mohed Al Hindi’, took place in August 2021, focusing on enhancing maritime security operations and naval maneuvers. Beyond naval cooperation, the two countries also conducted their first joint land forces exercise, ‘Ex-Sada Tanseeq-I’, in 2024.

A major milestone in defense relations occurred with the visit of Hon’ble Minister of State for Defence, Shri Ajay Bhatt, to Riyadh for the World Defence Show in February 2024. During this visit, a Memorandum of Understanding (MoU) was signed between Munitions India Limited and a local Saudi partner, facilitating the supply of artillery ammunition worth USD 225 million, underscoring the deepening defense production and export ties between the two nations.

5. Strategic Investments

Indian investments in Saudi Arabia have seen a significant rise in recent years, reaching approximately USD 3 billion by August 2023. These investments cover a range of sectors, including construction, IT, energy, and pharmaceuticals. Prominent companies like L&T, TATA Motors, and Wipro have made a notable impact in the Kingdom. Meanwhile, Saudi investments in India, including contributions from the Public Investment Fund (PIF) and other Saudi-backed entities, have totaled around USD 10 billion.

“India’s ‘Aatmanirbhar Bharat’ and Saudi Arabia’s ‘Vision 2030’ are national programmes that can be mutually beneficial to both sides.” Shri Ajay Bhatt mentioned in a press release following his visit to Saudi Arabia.

(This Article was originally published by First Post)