India and Saudi Arabia

Context:

?   India and Saudi Arabia have decided to set up a Joint Committee on Defence Cooperation to give a boost to the defence ties.

India-Saudi Arabia Relations:

?   Establishment of diplomatic relations in 1947, and it was strengthened by the signing of Delhi Declaration in 2006 and elevated to a strategic partnership by signing of Riyadh Declaration            in         2010.

?   The Prime Minister of India’s visit to Riyadh in 2016 captured the spirit of enhanced cooperation in the political, economic, security, and defence realms.

?   King Salman conferred the King Abdulaziz Sash (the Kingdom’s highest civilian honour) to India’s Prime Minister, indicating the importance of Saudi Arabia-India relations.

Current Scenario:

?   India’s relations with Saudi Arabia have witnessed unprecedented growth in recent years, marked by a remarkable rise in trade and other investments.

?   Trade: India’s foreign trade with Saudi Arabia reached an all-time high of $52.75 billion in FY23.

?   India received $3.22 billion in FDI from Saudi Arabia between April 2000 and June 2023.

?   India sources crude petroleum,            petroleum products, fertilisers, raw plastic, organic and inorganic chemicals from Saudi Arabia.

?   Energy Security: Saudi Arabia contributes to India’s energy security as India is highly dependent on imports for its energy needs, importing 87% of oil consumed, and the Middle East accounts for over 60% of India’s crude oil imports.

?   Food Security: India complements Saudi countries in their food security as Saudi Arabia is largely import-dependent for its food needs and manufactured goods, including textiles.

?   Strategic Partnership Council (SPC): India is the fourth country after the UK, France, and China to partner with Saudi Arabia to establish the India-Saudi Arabia Strategic Partnership Council (SPC) in 2019.

Conclusion and Way Forward

?   Despite the challenges, both nations have recognized the importance of adapting their partnership to address modern challenges. They have established the India-Saudi Arabia Strategic Partnership Council (SPC) in 2019 to take forward mutual collaborations on the economy, investments, as well as social, political, and security matters.

?   India needs to patiently assess if China’s growing involvement in the Gulf is detrimental to its long-term security interests and the regional balance of power.

?   The I2U2 partnership between India, Israel, the UAE, and the US has already put India on the region’s alliance canvas.

?   At the same time, recent developments also provide a window of opportunity for India to embed itself as a significant player in the Middle East.