India-Saudi Arabia: Deepening Strategic Partnership in Security

Counter-Terrorism and Trade: India-Saudi Arabia's Expanding Strategic Nexus

In Riyadh this week, at the third India–Saudi Arabia Security Working Group meeting, counter-terrorism strategies took center stage. Both nations agreed to intensify efforts against terror financing, technology misuse, and radicalisation. The focus on these priorities is unsurprising, given that Saudi Arabia’s vast financial systems and India's exposure to terror threats create shared vulnerabilities. Beyond symbolism, the stakes include a 2.7-million-strong Indian diaspora in Saudi Arabia, $43.3 billion in bilateral trade (2023-24), and critical energy dependencies that tie New Delhi to Riyadh’s political stability. Yet this trajectory, despite its promise, is riddled with challenges that transcend mere bilateralism.

The Framework: Strategic Partnership Council and Security Dialogues

The operational center of India-Saudi security cooperation is the Strategic Partnership Council (SPC), created in 2019 during Prime Minister Narendra Modi's visit to Riyadh. Under this elevated platform, the SPC organized the Security Working Group meetings to provide institutional continuity to their strategic dialogue. The security discussions integrate critical areas: terrorism, transnational crime, cyber threats, and radicalisation. The latest conference broadened this agenda to cover emerging threats like misuse of technology for terrorist purposes.

However, the SPC is not merely a procedural framework. It represents a shift in Indo-Saudi relations, which were historically economic and energy-centric but are now diversifying into security and defense. For example, Saudi Arabia’s recent contracts with India for Bharat Forge's Advanced Towed Artillery Gun System (ATAGS) and a $250 million ammunition deal underscore this evolution. This growing strategic convergence holds the promise of an Indo-Arab axis capable of reconceptualizing regional geopolitics.

The Case For: Mutual Benefits in Security and Stability

India’s case for deepening security cooperation with Saudi Arabia rests on three critical pillars: counter-terrorism, energy security, and regional stability. Saudi Arabia's role in combating terrorist financing — especially via its position as a global financial hub — aligns with India’s persistent concerns over cross-border terror emanating from Pakistan. The emphasis on institutionalized security dialogues under the SPC gives New Delhi access to collaborative mechanisms for intelligence-sharing and the dismantling of funding networks that often intersect Gulf financial sectors.

Take, for example, the nexus between terrorist financing and radicalization in cyberspace. With India second only to China in internet users, the potential for young populations to fall prey to extremists using social media is high. Saudi Arabia faces similar risks tied to the digital proliferation of Wahhabi ideologies, making this partnership an opportunity for joint cybersecurity protocols.

Economics further cement the strategic logic. India sourced 16.7% of its crude imports and 11.2% of its petroleum product imports from Saudi Arabia in FY23 — vulnerabilities accentuated amid fluctuating Gulf stability. Given the rise of petro-dollar diplomacy, Riyadh’s cooperation on India's energy demands reduces potential leverage that oil-exporting nations like Russia or OPEC+ allies might exert.

The Case Against: Fragile Foundations and Overreach

But does the rhetoric match the reality? Despite the high-level engagements and expanding agreements, the substance of India-Saudi counter-terrorism collaboration remains opaque. It is unclear, for instance, how far Saudi Arabia — often criticized for its alleged funding of transnational Islamist movements — is willing or able to implement strict policing of illicit financial flows. The Kingdom’s own geopolitical compulsions, especially within the broader Gulf Cooperation Council (GCC), may dilute commitments made during bilateral frameworks like the SPC.

Equally concerning is whether the institutional scaffolding of the Security Working Group can translate to granular execution. Terror financing networks thrive on gaps between national jurisdictions — a persistent problem for global counter-terrorism frameworks. Here, the absence of robust mechanisms for extradition and mutual legal assistance raises the question: How much of this partnership is aspirational rather than actionable?

Hawkish Indian policymakers might also overlook the risk of overdependence on Riyadh at the expense of broader Gulf diplomacy. For example, segments of India’s political establishment have treated Saudi Arabia’s strategic turn towards New Delhi as a counterweight to Pakistan. But this assumption disregards Riyadh’s historically ambivalent stance towards Islamabad — pragmatic, rather than oppositional. Should India calibrate its Gulf strategy heavily in Riyadh’s favor, it risks alienating key partners like the UAE or even Qatar.

International Comparisons: Australia's Model with Indonesia

This Indo-Saudi partnership could draw lessons from the Australia–Indonesia security architecture. Faced with shared maritime security threats and terror networks with regional reach in Southeast Asia, Canberra established robust intelligence-sharing mechanisms. A 2017 counter-terrorism partnership committed both nations to prevent online radicalisation and intercept financial flows linked to terror. Despite geographical and cultural differences, Australia avoided reducing its broader ASEAN partnerships to facilitate bilateral overreach towards Jakarta.

The catch was in execution: absent robust mutual legal frameworks, their collaboration remained patchy, much like the pitfalls facing India and Saudi Arabia. This is where the India-Saudi alignment could falter unless backed by highly specific and enforceable mechanisms that go beyond declarative agreements.

Where Things Stand: Steps Forward, Caution Advised

The India–Saudi security partnership shows significant ambition, but it rests on multiple vulnerabilities. While the economics of oil, trade, and labor underpin a deep mutual interest, the translation of intent into operational outcomes remains mixed. Without clearly defined timelines and specific protocols for mutual legal assistance on terror financing or radicalisation, New Delhi risks hollowing out its grand strategic rhetoric.

Additionally, structural disparities in Saudi Arabia’s internal political calculus — balancing Wahhabi interests with its modernization thrust under Vision 2030 — could complicate anti-radicalisation cooperation. For India, therefore, the short-term focus should be on measurable wins, such as joint cybersecurity exercises or targeted intelligence-sharing trials, while maintaining its broader Gulf outreach balanced.

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