In a notable diplomatic event, the Indian Prime Minister embarked on a significant visit to Saudi Arabia, a strategic Middle-Eastern country. The trip spanned from 28th to 29th October 2019, marking its significance as the Prime Minister’s second visit to the Kingdom in a span of three years.
India-Saudi Strategic Partnership Council Establishment
A crucial outcome of this visit was the foundation of the India-Saudi Strategic Partnership Council. The council, formed to coordinate strategically vital issues, will be led by the Prime Minister and Crown Prince Mohammed. The leaders agreed on a frequency of meeting every two years. India is privileged to be the fourth country, following the UK, France, and China, with which Saudi Arabia has formed such partnerships.
Memoranda of Understanding Signed
This visit saw the signing of twelve Memorandum of Understandings (MoUs). Pertinently, these agreements cover various sectors including defence industries, security, air services, renewable energy, medical products regulation, the prevention of narcotics trafficking, and the adaptation of RuPay cards in Saudi Arabia. Beyond these, an MoU aimed at facilitating comfortable travel for Hajj pilgrims during pilgrimage seasons was also signed.
Joint Stand Against Terrorism
A united stand against terrorism formed a critical part of the discussions. Both countries condemned terrorism in all forms and emphasized that no specific religion, race or culture should be associated with international terrorism. Along with this, they discussed several regional conflicts, including the Syrian and Yemen wars. They also expressed their mutual desire for a peaceful resolution to the Palestinian issue, favoring the establishment of an independent Palestinian state based on the pre-1967 borders with Jerusalem as its capital.
Future Investment Initiative and Energy Cooperation
The Prime Minister’s visit coincided with Saudi Arabia’s annual investment forum, known colloquially as ‘Davos in the Desert’—an informal name derived from the World Economic Forum’s annual meeting held in Davos, Switzerland. The Prime Minister extended an invitation to Saudi companies to invest in India’s energy sector with a target investment of $100 billion by 2024.
Saudi Arabia expressed its interest in contributing to the creation of strategic petroleum reserves at Padur in Karnataka. The possibility of setting up the world’s largest greenfield refinery in Maharashtra by Saudi Aramco, Adnoc of the United Arab Emirates and Indian public sector oil companies is also under investigation.
| Facts |
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| India-Saudi Strategic Partnership Council was established in the year 2019. |
| Saudi Arabia is India’s second-largest supplier of crude oil and plays a significant role in India’s Strategic Petroleum Reserves (SPRs). |
| The India-Saudi bilateral trade stood at US$ 34.03 billion in 2018-19. |
| India hosts a 2.6 million-strong Indian community, making it the largest expatriate group in Saudi Arabia. |
India – Saudi Arabia Relations: An Overview
With the signing of the Riyadh Declaration in 2010, Saudi Arabia has become a strategic partner of India. It currently serves as India’s second-largest supplier of crude oil, meeting approximately 18% of its energy requirements. Furthermore, Saudi Arabia’s essential role in India’s Strategic Petroleum Reserves (SPRs) cannot be overstated.
Saudi Arabia and India have a strong trade relationship, with Saudi Arabia ranking as India’s fourth-largest trade partner. The mutual trade reached a significant total of US $ 34.03 billion in 2018-19.
The Indian community in Saudi Arabia, which is around 2.6 million strong, is the largest expatriate community in the Kingdom and is valued for their skills, sense of discipline, law-abiding nature and peace-loving attributes. Another key aspect of bilateral relations is the Hajj pilgrimage, an annual religious event that brings thousands of Indian Muslims to Saudi Arabia.
