Why in the News?

During PM Modi’s visit to Jeddah, Saudi Arabia, the two countries are set to sign at least six MoUs.

What’s in Today’s Article?

• India-Saudi Arabia Relations (Introduction, Historical Background, Trade, Defence, Diaspora, etc.)
• Key Outcomes of PM Modi’s Visit

Introduction

• India and Saudi Arabia share a deep-rooted relationship based on historical, cultural, economic, and strategic ties.
• With increasing global uncertainty and regional transformations, the bilateral engagement between the two nations has grown stronger, culminating in Prime Minister Narendra Modi's April 2025 visit to Riyadh.
• The visit emphasized economic cooperation, investment flows, energy partnerships, and socio-cultural linkages.

Historical Background

• Bilateral diplomatic relations were formally established in 1947, and they have progressively deepened, particularly in the 21st century.
• Landmark visits, such as those of King Abdullah in 2006 and PM Modi in 2016 and 2019, have institutionalized cooperation through strategic agreements.

Political Relations

• The relationship was upgraded to a ‘Strategic Partnership Council’ during PM Modi's visit in 2019, institutionalizing high-level dialogue.
• Both nations support a multipolar world order and cooperate in multilateral platforms such as the G20, UN, and OIC.

Economic and Trade Relations

• Bilateral trade ties have grown steadily grown over the years.
• India is the 2^ndlargest trade partner of Saudi Arabia whereas Saudi Arabia is the 5^th largest trading partner of India.
• 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.
• India imports about 18% of its crude oil from Saudi Arabia. The kingdom is a key source of petrochemical products and fertilizers.
• India’s exports to Saudi Arabia include rice, machinery, textiles, chemicals, and IT services.

Defence and Security Cooperation

• Defence ties have witnessed a boost through joint naval exercises (Al-Mohed Al-Hindi), counter-terrorism cooperation, and intelligence sharing.
• Both countries have an interest in regional stability, especially in the context of West Asia and the Indian Ocean Region.

Indian Diaspora in Saudi Arabia

• Over 2.4 million Indians reside in Saudi Arabia, making them the largest expatriate group.
• The community is engaged in a range of professions and plays a crucial role in the Saudi economy.
• India is among the top beneficiaries of Hajj quotas, with more than 1.75 lakh pilgrims participating annually.

Cultural and Tourism Linkages

• Initiatives in cultural exchanges, tourism cooperation, and the Saudi Vision 2030 reforms (which now allow more open tourism policies) have contributed to closer people-to-people ties.

Key Outcomes of PM Modi's April 2025 Visit

• PM Modi’s visit to Saudi Arabia in April 2025 focused on strengthening economic, energy, and strategic cooperation. The key outcomes include:
• Signing of Six MoUs and Agreements
  • Energy Cooperation: Enhanced collaboration in oil exploration, refining, and renewable energy including green hydrogen.
  • Digital Infrastructure: Joint efforts to build robust digital public infrastructure and innovation-based partnerships.
  • Investment in Critical Sectors: Agreements focusing on the investment of Saudi sovereign wealth into India’s infrastructure, logistics, and energy corridors.
  • Pharmaceutical Trade: Strengthening supply chains and approvals for Indian pharma in Saudi markets.
  • Fintech and Banking: Frameworks to facilitate fintech collaboration and simplified banking channels for NRIs.
  • Cultural Exchange: New initiatives in tourism, film, and education under Vision 2030.
• Strategic Talks on Hajj Quota and Labour Welfare
  • PM Modi raised the issue of increasing the Hajj quota for Indian Muslims, citing the growing demand and demographic representation.
  • Agreements were made to strengthen the framework for labour protection and dispute redressal for Indian workers.
• Expansion of Strategic Partnership Council
  • New working groups on defence technology, space, and semiconductor manufacturing were added under the council’s purview.