Indo-Saudi Ties

rawan239

53 mins ago

Why in News: PM Modi’s state visit to Saudi Arabia and participation in the 2nd India-Saudi Arabia Strategic Partnership Council (SPC) meeting.
Key Outcomes:
- Creation of two new Ministerial Committees under the SPC: Defence Cooperation and Tourism & Cultural Cooperation.
- Saudi Arabia’s commitment to invest USD 100 billion in India across various sectors.
- MoUs signed on space, health, anti-doping, and postal cooperation.
Developed Relations:
- Diplomatic ties since 1947, elevated to a Strategic Partnership in 2010, and SPC formed in 2019.
- India is Saudi Arabia’s 2nd largest trade partner, and Saudi Arabia is India’s 5th largest. Bilateral trade at USD 42.98 billion in FY24.
- Saudi Arabia was India’s 3rd largest source of crude oil and LPG in FY24.
- Joint military exercises and cultural exchange, including Haj quota for Indian pilgrims and recognition of Yoga.
Key Challenges:
- Labour welfare concerns for Indian workers in Saudi Arabia.
- Worsening trade deficit due to reliance on Saudi oil imports.
- Regional instability and Saudi-Iran rivalry pose diplomatic challenges for India.
- Saudi Arabia’s closer ties with China and Pakistan.
Areas for Strengthening Relations:
- Green energy collaboration, especially in solar and green hydrogen.
- Technology and innovation partnership in IT, AI, and FinTech.
- Enhance the Strategic Partnership through IMEC.
- Utilizing GCC Platforms for regional stability and peace efforts.