Brief Context
Context Prime Minister Narendra Modi paid a state visit to Saudi Arabia. List of Outcomes Strategic Partnership Council: The second leaders meeting of the India-Saudi Arabia Strategic Partnership Council (SPC) was co-chaired by the leaders. Ministerial Committee on Defence Cooperation under the SPC: To reflect the deepening of defence partnership over the past few years, the Council decided to create a new Ministerial Committee on Defence Cooperation under the SPC.
Source Content
Syllabus: GS2/IR
Context
- Prime Minister Narendra Modi paid a state visit to Saudi Arabia.
List of Outcomes
- Strategic Partnership Council: The second leaders meeting of the India-Saudi Arabia Strategic Partnership Council (SPC) was co-chaired by the leaders.
- Ministerial Committee on Defence Cooperation under the SPC: To reflect the deepening of defence partnership over the past few years, the Council decided to create a new Ministerial Committee on Defence Cooperation under the SPC.
- A new Ministerial Committee on Tourism and Cultural Cooperation: To strengthen cultural and people-to-people ties, the Council decided to create a new Ministerial Committee on Tourism and Cultural Cooperation under the SPC.
- The four committees under the India-Saudi Arabia SPC shall now be as follows:
- Political, Consular and Security Cooperation Committee.
- Defence Cooperation Committee.
- Economy, Energy, Investment and Technology Committee.
- Tourism and Cultural Cooperation Committee.
- High Level Task Force on Investment (HLTF): Building on the commitment of Saudi Arabia to invest USD 100 billion in India in multiple areas, the joint HLTF agreed to collaborate on establishing two refineries in India.
- List of MoUs/Agreements: MoU between the Saudi Space Agency and the Department of Space of India on Cooperation in the field of Space Activities for Peaceful Purposes.
- MoU between the Ministry of Health on Cooperation in the field of Health.
Brief on India and Saudi Arabia Relations
- Political Relations: The two countries established diplomatic relations in 1947.
- The royal visit of 2006 resulted in the signing of the Delhi Declaration, which was followed in 2010 by the Riyadh Declaration that elevated bilateral ties to a strategic partnership.
- The Strategic Partnership Council (SPC) Agreement was signed during the 2019 visit of the Indian PM to Riyadh, which established a high-level council to steer the Indo-Saudi relationship.
- Economic Relations: India is Saudi Arabia’s second-largest trade partner; Saudi Arabia is India’s fourth-largest trade partner.
- In FY 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.
- Energy Cooperation: Saudi Arabia remained India’s third largest Crude and Petroleum products sourcing destination for FY 2023-24.
- India imported 33.35 MMT of crude oil in FY 2023-24 from Saudi Arabia, accounting for 14.3% of India’s total crude oil imports.
- In FY 2023-24, Saudi Arabia was the 3rd largest LPG sourcing destination for India, accounting for 18.2% of the total LPG imports of India for 2023-24.
- Indian diaspora: As of 2024, there were 2.7 million Indians in Saudi Arabia. This is the second largest number of foreign workers in the country, after Bangladesh.
- Indian workers in Saudi Arabia send back significant remittances, contributing to India’s foreign exchange reserves.
- Regional Stability: Saudi Arabia plays a key role in Middle East politics. Stable and friendly ties with Saudi Arabia help India navigate the broader West Asian region diplomatically.
- Defence Cooperation: India and Saudi Arabia are focusing on strengthening defence ties to achieve self-reliance and mutual growth in defence manufacturing.
- Under Vision 2030, Saudi Arabia is aiming to transition from a defence consumer to a defence producer, with a target to localise 50% of its spending.
- Saudi Arabia signed a $250 mn contract for ammunition from Munitions India Limited, a Defence Public Sector Undertaking.
- Saudi Arabia has procured the 155mm Advanced Towed Artillery Gun System (ATAGS) from Bharat Forge.
- Joint exercises:
- Sada Tanseeq: The inaugural Army exercise held in 2024.
- Al Mohed Al Hindi: Bilateral naval exercise initiated in 2022.
Way Ahead
- The shared aspiration to reduce dependence on defence imports and boost local production presents significant opportunities for both nations.
- Joint ventures and collaboration in cutting-edge technologies such as AI and cybersecurity can enhance strategic autonomy.
- By aligning their goals under Vision 2030 and Make in India, India and Saudi Arabia can emerge as pivotal partners in shaping the global defence landscape.
Source: TH