India and Saudi Arabia are poised to significantly strengthen their strategic partnership as Prime Minister Narendra Modi embarks on a two-day official visit to Riyadh from April 22 to 23, at the invitation of Saudi Crown Prince and Prime Minister Mohammed bin Salman.

This will be PM Modi’s third visit to the Kingdom, following his earlier visits in 2016 and 2019. It comes on the heels of Crown Prince Mohammed bin Salman’s visit to India in September 2023, during which he co-chaired the inaugural India-Saudi Arabia Strategic Partnership Council (SPC) meeting on the sidelines of the G20 Summit.

Highlighting the longstanding and friendly ties between the two countries, the Ministry of External Affairs (MEA) noted that India and Saudi Arabia enjoy robust cooperation across political, defence, security, energy, trade, investment, technology, health, education, and cultural sectors.

The MEA emphasized that PM Modi’s upcoming visit reflects the importance India places on its bilateral ties with the Kingdom and provides an opportunity to deepen the multifaceted partnership and exchange views on regional and global issues of mutual concern.

Saudi Arabia and India first established diplomatic relations in 1947, and in 2010 the partnership was elevated to a Strategic Partnership. However, relations have grown significantly stronger over the past decade, particularly after PM Modi’s landmark visit to Riyadh in 2016.

During that visit, King Salman conferred upon PM Modi the Kingdom’s highest civilian honor, the King Abdulaziz Sash, in recognition of his contributions to strengthening bilateral ties.

The Strategic Partnership Council, established during PM Modi’s visit in 2019, comprises two main pillars:

• Political-Security-Socio-Cultural (PSSC), co-chaired by the External Affairs Minister of India and the Saudi Foreign Minister
• Economic and Investment, co-chaired by India’s Commerce Minister and Saudi Arabia’s Energy Minister

The SPC is supported by eight Joint Working Groups and sub-committees, which conduct regular meetings to advance cooperation. The first SPC Summit was held in New Delhi in September 2023.

Since the beginning of 2024, there have been 11 high-level ministerial visits between the two nations, including visits from the Saudi Foreign Minister and the Minister of Industry and Mineral Resources.

Economic Ties:
Saudi Arabia is India’s fifth largest trading partner, while India is Saudi Arabia’s second largest. In FY 2023-24:

• India’s imports from Saudi Arabia totaled $31.42 billion,
• Exports to Saudi Arabia reached $11.56 billion.

Key Indian exports: engineering goods, rice, petroleum products, chemicals, textiles, ceramic tiles, and food products.
Key imports from Saudi Arabia: crude oil, LPG, fertilizers, plastics, and chemicals.

Investment Cooperation:
Saudi investments in India, including through the Public Investment Fund (PIF) and Vision Fund, exceed $10 billion, with significant stakes in:

• Reliance Jio Platforms
• Reliance Retail Ventures
• Oyo Hotels
• HealthifyMe
• Daawat Foods (via SALIC)
• SABIC’s $100M tech centre in Bengaluru

Key Saudi investors: ARAMCO, Zamil Group, Al Fanar, Petromin
Indian investments in Saudi Arabia have also grown, reaching $3 billion in August 2023, spanning construction, telecom, IT, consulting, financial services, and pharmaceuticals.

Major Indian companies in Saudi Arabia include L&T, Tata Group, Wipro, TCS, Shapoorji Pallonji, Air India, IndiGo, and SpiceJet.

Energy Ties:

• Saudi Arabia was India’s third-largest supplier of crude oil in FY 2023-24, with 33.35 MMT of crude imported (14.3% of total imports).
• It was also the third-largest LPG supplier, accounting for 18.2% of total imports.
• Saudi Arabia is India’s second-largest source of DAP fertilizer.

Diaspora and Cultural Links:

• The 2.7 million-strong Indian diaspora in Saudi Arabia plays a key role in economic ties.
• 1 lakh Indians moved to Saudi Arabia for employment last year alone.
• India’s Haj quota currently stands at 175,025 pilgrims annually.

The visit is expected to further advance the Strategic Partnership across sectors and reaffirm both nations’ shared commitment to regional stability, economic development, and global cooperation.