The meeting of the Indian External Affairs Minister and the Foreign Minister of the Kingdom of Saudi Arabia, recently made headlines. The high-profile meeting was critical as it addressed numerous key points concerning the two nations.
Discussions on Cooperation in Multilateral Forums
At the heart of the discussions were proposals to strengthen collaboration in multilateral forums such as the United Nations, G-20, and the Gulf Cooperation Council (GCC). However, it is noteworthy that India is not a member of the GCC.
Strategic Partnership Council Agreement Implementation
The meeting also delved into the implementation of the Strategic Partnership Council Agreement, signed in 2019. This council, led by the Prime Minister and Crown Prince Mohammed, focuses on strategic issue coordination and meets biennially. Interestingly, India is only the fourth country with which Saudi Arabia has formed such an alliance, after the UK, France, and China. This strategic partnership has been thriving since the signing of the Riyadh Declaration in 2010.
Focus on Afghanistan and Other Regional Issues
Saudi Arabia, having previously backed the Taliban regime along with Pakistan and the UAE, was another critical discussion point, particularly in light of recent developments in Afghanistan.
Partnership Strengthening Measures
The two ministers discussed further steps to bolster their partnership across multiple sectors, including trade, investment, energy, defence, security, culture, consular issues, healthcare, and human resources.
Oil and Trade Ties: India and Saudi Arabia
Saudi Arabia holds a key position as India’s second largest supplier of crude oil, trailing only Iraq. With an eye on further collaboration, Saudi Arabia has expressed interest in contributing to the creation of Strategic Petroleum Reserves at Padur in Karnataka. Furthermore, an ongoing study is exploring the possibilities of establishing the world’s largest greenfield refinery at Raigarh in Maharashtra by Saudi Aramco, Adnoc of the United Arab Emirates and Indian public sector oil companies. In terms of trade, Saudi Arabia is India’s fourth-largest partner with bilateral trade valued at US $33.07 billion during FY 2019-20.
The Role of the Indian Diaspora
The 2.6 million-strong Indian community living in Saudi Arabia forms the Kingdom’s largest expatriate community. They are the ‘most preferred community’ due to their expertise, discipline, law-abiding nature, and peaceful demeanor.
Cultural Links and Naval Exercises
Cultural ties such as the Haj pilgrimage form a significant part of the bilateral relations between the two nations. Another landmark step in their partnership was the initiation of the first-ever joint Naval exercise, branded the Al-Mohed Al-Hindi Exercise.
Potential Areas for Further Cooperation
Despite these robust ties, the trade balance heavily favours Saudi Arabia, and India primarily exports agricultural products. To rectify this imbalance, India could expand its product base. Possible sectors for future cooperation include infrastructure, energy, skilling, and IT. Furthermore, India could persuade Saudi Arabia to utilise its influence over Pakistan to control the Taliban in Afghanistan. Such a collaborative effort would significantly transform the Southwest Asia sub-region.
