India–Saudi Arabia ties evolve into strategic economic powerhouse
Indian Prime Minister Narendra Modi’s recent visit to Saudi Arabia signaled a strategic realignment between two of Asia’s major powers, cementing high-level cooperation in defence, security, energy, and investment.
• India and Saudi Arabia are forging a forward-looking partnership and their growing relations reflect not only mutual interests but a shared vision for a more multipolar global order.
When Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman exchanged greetings at the 2023 G20 Summit in New Delhi, it symbolized more than diplomatic courtesy—it marked a strategic shift between two of Asia’s key powers, reported Gulf News.
India, an emerging economic force with a young population and digital edge, and Saudi Arabia, an energy-rich nation reinventing itself through diversification, are forging a forward-looking partnership. Their growing ties reflect not only mutual interests but a shared vision for a more multipolar global order.
India–Saudi Arabia relations have evolved far beyond the traditional pillars of oil trade and remittances. Today, the partnership is broad-based, spanning sectors such as space technology, fintech, green hydrogen, infrastructure, security, and cultural exchange. This transformation marks a strategic shift from a transactional relationship to a deeply transformational one, powered by shared ambitions, capital flows, and long-term vision.
The bilateral trade between the two nations continues to grow steadily. India is Saudi Arabia’s second-largest trading partner, while Saudi Arabia ranks fifth among India’s top trade partners. In the fiscal year 2023–24, trade between the two countries reached $42.98 billion, with Indian exports totaling $11.56 billion and imports valued at $31.42 billion.
Indian investments in Saudi Arabia hit $3 billion
Saudi Crown Prince Mohammed bin Salman’s Vision 2030 aligns well with India’s economic growth trajectory and digital advancement. Indian investments in Saudi Arabia have risen to around $3 billion as of August 2023, across sectors like construction, IT, telecom, and pharmaceuticals.
On the other hand, Saudi investments in India—led by the Public Investment Fund (PIF), Vision Fund, and Saudi companies—stand at approximately $10 billion. These include significant stakes in Reliance Jio Platforms and Reliance Retail, along with agri-sector acquisitions such as Salic’s holdings in Daawat Foods and LT Foods.
The India–Saudi Arabia relationship has moved decisively beyond hydrocarbons into a broad-based strategic partnership. A major turning point came in 2019, when Prime Minister Narendra Modi’s visit to Riyadh led to the signing of the Strategic Partnership Council agreement. This institutionalized high-level cooperation across critical sectors such as defence, security, energy, and investment.
The unveiling of the India–Middle East–Europe Economic Corridor (IMEC) at the 2023 G20 Summit in Delhi further cemented this shift. IMEC, which connects India to Europe via the UAE, Saudi Arabia, Jordan, and Israel, signals a reimagining of global trade routes. Saudi Arabia’s role in the project positions the Kingdom as a logistics hub while boosting India’s strategic influence in the Indo-Pacific.
Strategic cooperation is growing deeper. Joint naval exercises highlight expanding defence ties, while both nations align on regional security, counter-terrorism, and cybersecurity.
Knowledge-based economy
As Saudi Arabia pushes towards a knowledge-based economy, Indian IT giants like TCS, Wipro, and Infosys are expanding operations there. Meanwhile, cultural exchanges—from Bollywood festivals to tourism and sports collaborations—underscore the growing soft power synergy.
Together, India and Saudi Arabia are shaping a new model of South-South cooperation marked by innovation, energy transition, and strategic autonomy—anchored in trust and a shared vision of global realignment.
