In recent years, India and Saudi Arabia have significantly strengthened their economic interactions and turned their bilateral relations into a strong partnership. This development reflects a strategic alignment of interests in the economy, energy security and geopolitical considerations.
Saudi Arabia has now become one of New Delhi’s largest trading partners. In 2021, the volume of trade between the two countries exceeded $34 billion. By comparison, China’s exports to Saudi Arabia alone were $29 billion in 2021 but, admittedly, the kingdom’s exports to China were only $11 billion that year. India imported goods worth just over $9 billion that year, mainly crude oil.
India exports a wide range of goods to Saudi Arabia with an upward trend. In 2023, they were $10.8 billion, still below $13.1 billion, which was the all-time high in 2014. India’s exports include refined petroleum products, chemicals, and agricultural products. A number of high-level visits and strategic agreements have strengthened this cooperation. The signing in 2019 of the Strategic Cooperation Council Agreement between India and Saudi Arabia marked an important event for the two sides. Saudi Arabia’s Vision 2030 plan aligns with India’s economic goals, thus strengthening cooperation in areas such as infrastructure, renewable energy, and technology.
Saudi Arabia provides a significant part of India’s energy needs. This cooperation extends beyond oil, with joint ventures in petrochemical and renewable energy projects. The Ratnagiri Petrochemical and Refinery project – a joint venture between Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and Indian companies – is a testament to the reality of their collaboration.
Saudi Arabia invests in various sectors in India, including real estate, healthcare, and technology. The Public Investment Fund (PIF) has invested heavily in Indian companies, particularly in the technology and e-commerce sectors. Indian companies have also increased their presence in Saudi Arabia.
Saudi Arabia is also a very important partner for Pakistan. This chance for the Saudis, to have good relations with both India and Pakistan, can help resolve the differences between the two South Asian states. The important thing to keep in mind is that all these three states have, in principle, positive relations with both the West and the BRICS.
Photo: MBS’s 2019 visit to India.
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