India and Saudi Arabia have shared a complex relationship over the decades, marked by economic cooperation, cultural exchanges, and strategic partnerships. In the past decade, this relationship has achieved new heights, driven by mutual interests in economic development, regional security, and energy cooperation. This essay explores the significant milestones in India-Saudi Arabia relations over the past ten years and examines the future trajectory of this dynamic partnership.
Historically, India and Saudi Arabia have enjoyed a cordial relationship, largely influenced by trade and cultural exchanges dating back to ancient times. The formal diplomatic relations between the two countries were established soon after India gained independence in 1947. However, it was in the late 20th and early 21st centuries that the bilateral relationship began to gain substantial momentum, particularly with the increasing importance of energy security and economic cooperation.
The past decade has seen a significant strengthening of economic ties between India and Saudi Arabia. Trade and investment have been key pillars of this relationship. In 2019, Saudi Arabia became India’s fourth-largest trading partner, with bilateral trade amounting to approximately $33 billion. The two countries have engaged in various high-level visits to boost economic ties. For instance, during Saudi Crown Prince Mohammed bin Salman's visit to India in February 2019, the two nations signed several agreements to enhance trade and investment. The Crown Prince announced plans for investments worth $100 billion in India over the next few years, targeting key sectors such as energy, refining, petrochemicals, infrastructure, agriculture, minerals, and mining.
Energy security has been a cornerstone of India-Saudi Arabia relations. Saudi Arabia is one of the largest suppliers of crude oil to India, meeting a significant portion of its energy needs. The two countries have worked towards diversifying their energy cooperation beyond oil. In recent years, they have explored opportunities in renewable energy, particularly solar power. The International Solar Alliance (ISA), an initiative led by India, has found a willing partner in Saudi Arabia, which is keen to expand its renewable energy footprint.
The strategic and security dimension of India-Saudi Arabia relations has gained prominence in the past decade. Both countries share concerns about regional stability, particularly with regard to terrorism and extremism. They have enhanced cooperation in intelligence sharing and counter-terrorism efforts. In 2019, during the visit of Crown Prince Mohammed bin Salman, the two countries signed an agreement on cooperation in the field of security, including counter-terrorism, organised crime, and cyber security.
Cultural and people-to-people ties have also flourished. The large Indian expatriate community in Saudi Arabia, estimated at over 2.5 million, plays a crucial role in strengthening bilateral ties. The Indian community is actively involved in various sectors, including healthcare, IT, construction, and services, contributing significantly to the Saudi economy. Furthermore, initiatives like the Saudi-India Forum and various cultural exchanges have fostered a greater understanding and appreciation of each other’s cultures.
Vision 2030 and Beyond
Saudi Arabia's Vision 2030, a strategic framework aimed at reducing the country's dependence on oil, diversifying its economy, and developing public service sectors such as health, education, infrastructure, recreation, and tourism, has opened new avenues for collaboration with India. Vision 2030 aligns well with India’s own economic aspirations and provides a broad framework for future cooperation.
Saudi Arabia’s push for economic diversification offers significant opportunities for Indian businesses. The Kingdom is keen to attract foreign investment in various sectors, including infrastructure, technology, education, and healthcare. Indian companies, with their expertise and experience, are well-positioned to participate in these sectors. The establishment of the Saudi-India Strategic Partnership Council in 2019 is a testament to the commitment of both countries to deepen their economic ties and explore new areas of cooperation.
As the world transitions towards cleaner and more sustainable energy sources, India and Saudi Arabia can play a pivotal role in this global shift. Both countries have made substantial investments in renewable energy, particularly solar and wind energy. Cooperation in this field can lead to joint ventures, technology transfer, and research and development initiatives. The collaboration in renewable energy also aligns with global efforts to combat climate change and achieve sustainable development goals.
The evolving geopolitical landscape necessitates closer defence and security cooperation between India and Saudi Arabia. Both countries have shared interests in ensuring regional stability and combating terrorism. The potential for joint military exercises, defence technology collaboration, and enhanced intelligence sharing can further bolster their strategic partnership. The ongoing conflicts in the Middle East and the threat of extremism make it imperative for both nations to work together closely.
Cultural exchange and tourism are vital components of the bilateral relationship. Saudi Arabia's efforts to open up its tourism sector, as part of Vision 2030, provide opportunities for increased people-to-people interaction. India, with its rich cultural heritage, can attract Saudi tourists, while Saudi Arabia’s historical and religious sites can appeal to Indian travellers. Cultural festivals, academic exchanges, and tourism promotion can strengthen the social and cultural bonds between the two nations.
While the future of India-Saudi Arabia relations appears promising, several challenges need to be addressed to realise the full potential of this partnership.
The geopolitical dynamics of the Middle East and South Asia can impact India-Saudi Arabia relations. The ongoing tensions in the Persian Gulf, the conflict in Yemen, and the broader regional rivalries require careful navigation to ensure that bilateral ties remain strong. Both countries need to balance their respective foreign policy priorities and manage their relations with other regional powers.
Despite efforts towards economic diversification, Saudi Arabia’s economy remains heavily reliant on oil. Fluctuations in oil prices can impact bilateral trade and investment. It is essential for both countries to continue their efforts to diversify their economic cooperation beyond the energy sector and explore new areas of mutual interest.
The treatment of Indian expatriate workers in Saudi Arabia has been a concern. Ensuring the rights and welfare of the Indian community in the Kingdom is crucial for sustaining positive bilateral relations. Both governments need to work together to address labor issues and improve the living and working conditions of expatriates.
India-Saudi Arabia relations have indeed achieved new heights in the past decade, marked by significant milestones in economic, energy, strategic, and cultural cooperation. The vision for the future, guided by Saudi Arabia's Vision 2030 and India’s economic aspirations, promises even greater collaboration and mutual benefits. However, realising the full potential of this partnership requires addressing challenges and leveraging opportunities effectively.
As both nations continue to evolve and adapt to changing global dynamics, their partnership can serve as a model of constructive engagement and mutual prosperity. By fostering deeper economic ties, enhancing strategic cooperation, and promoting cultural exchanges, India and Saudi Arabia can pave the way for a more stable and prosperous future for their people and the broader region.
