The recent inauguration of the India-Middle East-Europe Economic Corridor has brought new opportunities for economic and strategic cooperation between India and Saudi Arabia. This was highlighted during the state visit of the Crown Prince of Saudi Arabia, where both nations pledged to expedite the West Coast Refinery Project and further strengthen their strategic partnership.
Outcomes and Agreements Of The State Visit
During the state visit, significant developments were made towards strengthening the India-Saudi relationship.
Strategic Partnership Acknowledgment
The Prime Minister of India emphasized Saudi Arabia’s important role as a strategic partner for India, acknowledging the potential benefits this partnership could bring in terms of regional stability.
India-Saudi Strategic Partnership Council (SPC)
The two leaders co-chaired the inaugural meeting of the India-Saudi Strategic Partnership Council (SPC) during which they discussed areas for cooperation, including defence, energy, security, education, technology, transportation, healthcare, tourism, culture, space, and semiconductors.
West Coast Refinery Project Acceleration
A joint task force was established to expedite the West Coast Refinery Project, involving ARAMCO, ADNOC, and Indian Companies, with an estimated investment of USD 50 billion.
Bilateral Agreements and Cooperation
Eight agreements were signed during the visit, enhancing cooperation across various sectors like technology, education, and agriculture.
Assurance of Crude Oil Supply
Saudi Arabia reasserted its commitment to being a reliable exporter of crude oil supplies to India, ensuring energy security.
Defence and Anti-Terror Cooperation
Both nations pledged to increase their cooperation in defence and counter-terrorism efforts, specifically focusing on prohibiting access to missiles and drones for terrorist activities.
Geopolitical Significance
The visit holds geopolitical significance, illustrated by Saudi Arabia’s newfound membership in the BRICS and cessation of hostilities with Iran through a China-negotiated deal.
India-Saudi Strategic Partnership Council (SPC): An Overview
Formed in 2019, the SPC is a mechanism that guides and enhances the bilateral relationship between India and Saudi Arabia. The council comprises two sub-committees on Political, Security, Social, and Cultural Cooperation and Economy and Investments.
Functioning of the SPC
The SPC operates at four functional levels, providing a comprehensive platform for boosting collaboration across multiple sectors.
India’s Relationship with Saudi Arabia
The relationship between India and Saudi Arabia is multifaceted, comprising ties in oil and gas, bilateral trade, cultural linkages, defence, and emigration.
Oil and Gas
Saudi Arabia is the second-largest supplier of crude oil to India, meeting over 18% of India’s crude oil requirements.
Bilateral Trade
Saudi Arabia ranks as India’s fourth-largest trade partner, with bilateral trade valued at USD 29.28 billion in FY22.
Cultural Linkages
The cultural ties between the two countries are cemented by the Hajj pilgrimage and participation in cultural festivals.
Defence Cooperation
In 2021, India and Saudi Arabia kicked off their first-ever naval joint exercise, called the Al-Mohed Al-Hindi Exercise.
Indian Community in Saudi Arabia
With a population of 2.6 million, Indians form the largest expatriate community in Saudi Arabia, significantly contributing to its development.
