India and Saudi Arabia have a multifaceted strategic partnership that has been strengthening over the years . In 22 April 2025, Prime Minister Narendra Modi visited Saudi Arabia, further enhancing this relationship .
Key outcomes and aspects of the India-Saudi Arabia relationship:
- Strategic Partnership Council (SPC): The second leaders meeting of the India-Saudi Arabia SPC was co-chaired during the visit . To deepen defense cooperation, a new Ministerial Committee on Defence Cooperation was established under the SPC, along with a new Ministerial Committee on Tourism and Cultural Cooperation to strengthen cultural and people-to-people ties . The four committees under the SPC now include Political, Consular and Security Cooperation, Defence Cooperation, Economy, Energy, Investment and Technology, and Tourism and Cultural Cooperation .
- Economic Relations: India is Saudi Arabia’s second-largest trade partner, while Saudi Arabia is India’s fourth-largest trade partner . In fiscal year 2023-24, bilateral trade stood at USD 42.98 billion, with Indian exports at USD 11.56 billion and imports at USD 31.42 billion . Both countries seek to expedite negotiations for a Bilateral Investment Treaty . Saudi Arabia has also committed to invest USD 100 billion in India across multiple sectors .
- Energy Cooperation: Saudi Arabia is a major supplier of crude oil and petroleum products to India . In FY 2023-24, India imported 33.35 MMT of crude oil from Saudi Arabia, accounting for 14.3% of India’s total crude oil imports . The two sides are also looking to enhance cooperation in green and clean hydrogen, energy efficiency, and rationalizing energy consumption .
- Technology and Tourism: Both sides underscored the importance of cooperation in technology, including artificial intelligence, cybersecurity, and semiconductors . There is also an increasing focus on enhancing cooperation in tourism, supported by strong people-to-people ties .
- Defence Cooperation: India and Saudi Arabia are focusing on strengthening defense ties to achieve self-reliance and mutual growth in defense manufacturing . Saudi Arabia is aiming to transition from a defense consumer to a defense producer under Vision 2030 .
- Indian Diaspora: As of 2024, there were 2.7 million Indians in Saudi Arabia, the second largest number of foreign workers in the country . These workers contribute significantly to India’s foreign exchange reserves through remittances . In addition to these areas, India and Saudi Arabia are also cooperating on climate change, adhering to the principles of the United Nations Framework Convention on Climate Change and the Paris Agreement . They also expressed their full support for international and regional efforts to reach a comprehensive political solution to the crisis in Yemen .
Key areas of cooperation between India and Saudi Arabia :
India and Saudi Arabia are engaged in broad cooperation across various sectors. The most important areas are energy, trade and investment, defense, and the welfare of the Indian diaspora in Saudi Arabia .
Here’s a detailed breakdown:
- Economic and Trade Relations:
- Saudi Arabia is a major trading partner for India. Bilateral trade reached $42.98 billion in FY2023-24 .
- Saudi Arabia intends to invest $100 billion in India in sectors like petrochemicals, infrastructure, and mining .
- Both countries are working to expedite negotiations on the Bilateral Investment Treaty .
- Energy Cooperation:
- Saudi Arabia is a key supplier of crude oil to India, accounting for about 14.3% of India’s total crude oil imports in FY2023-24 .
- Cooperation extends to renewable energy, including green and clean hydrogen .
- Defense and Security:
- The countries are working to enhance defense cooperation, including defense industries and military collaboration .
- A new Ministerial Committee on Defence Cooperation has been established under the Strategic Partnership Council .
- Cultural and People-to-People Connections:
- A focus on strengthening cultural ties and tourism .
- A new Ministerial Committee on Tourism and Cultural Cooperation has been established under the Strategic Partnership Council .
- Indian Diaspora:
- Approximately 2.7 million Indians reside in Saudi Arabia, making them a significant part of the Kingdom’s workforce .
- Their remittances contribute substantially to India’s foreign exchange reserves .
- Technology:
- Cooperation in areas like artificial intelligence, cybersecurity, and semiconductors .
- Strategic Partnership Council:
- The Strategic Partnership Council (SPC) guides and monitors the overall strategic cooperation . It includes committees focusing on political, security, economic, and social issues.
- Other Areas:
- Collaboration on climate change, adhering to the UNFCCC and the Paris Agreement .
- Cooperation on regional issues, including efforts to resolve the crisis in Yemen . In summary, India and Saudi Arabia are strengthening ties across a wide range of sectors, including trade, investment, energy, defense, culture, and technology, underpinned by the Strategic Partnership Council…
