Saudi Arabia - India Relations

October 2023: Union Minister of Commerce and Industry, Shri Piyush Goyal attended the 7th Edition of Future Investment Initiative (FII) in Riyadh where he met several dignitaries from the host country of Kingdom of Saudi Arabia (KSA) including the Energy Minister His Royal Highness (HRH) Prince Abdul Aziz Bin Salman Al-Saud, Commerce Minister His Excellency (H.E.) Majid bin Abdullah AlKassabi, and Investment Minister H.E. Khalid A. Al Falih.   

Shri Piyush Goyal addressed the 7th Edition of FII and also co-chaired a conclave session on the theme “From Risk to Opportunity: Strategies for Emerging Economies in the New Industrial Policy Era” along with the KSA Investment Minister. 

Samvardhana Motherson International (SAMIL) has signed a Memorandum of Understanding (MoU) with the Ministry of Investment, Kingdom of Saudi Arabia to identify investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA).

The Strategic Partnership Council is a holistic institution covering various sectors of cooperation. The SPC has two pillars: i) Political-Security-Socio-Cultural (PSSC); and ii) Economy and Investment. Under the second pillar, 4 JWGs have been finalized covering the following heads: Industry and Infrastructure; Agriculture and food security; IT and Technology; and Energy.

During His Royal Highness the Crown Prince’s visit to India in Feb 2019, the two sides agreed on further deepening trade and investment cooperation between the two countries by aligning the Kingdom’s Vision 2030 and its 13 Vision Realization Programs with India’s flagship initiatives of "Make in India”, "Start-Up India”, "Smart Cities”, "Clean India”, and "Digital India”.

On the invitation of His Majesty King Salman, Prime Minister Shri Narendra Modi paid an official visit to Riyadh from 28-29 October 2019 during which the Strategic Partnership Council Agreement was signed, identifying India as one of the Kingdom’s Strategic Partner Countries under ‘Vision 2030’ with a high-level partnership council at the leadership level.

The landmark visits of Prime Minister Shri. Narendra Modi to the Kingdom in 2016 and 2019 and the State visit of Crown Prince Mohammad bin Salman to India in February 2019 marked a new era in bilateral relations, which culminated in the setting up of the Strategic Partnership Council (SPC), co-chaired by the two leaders. Besides that, the two sides signed 11 other MoUs in different fields between SA and India.

The visit of Prime Minister Narendra Modi to Riyadh in 2016 can be seen as a turning point in our growing engagements with the Kingdom of Saudi Arabia, which have taken an upward strategic direction.

The reciprocal visit by then Prime Minister Dr. Manmohan Singh to Saudi Arabia in 2010 raised the level of bilateral engagement to ‘Strategic Partnership’ and the ‘Riyadh Declaration’ signed during the visit enhanced cooperation in political, economic, security and defence realms.

The diplomatic relations between the two countries were established in 1947. The historic visit of King Abdullah to India in 2006 resulted in the signing of a ‘Delhi Declaration’ imparting a fresh momentum to the bilateral relationship.

Saudi Arabia is the 19th largest foreign investor in India with a cumulative Foreign Direct Investment (FDI) of $3.22 Bn from Apr 2000 to Dec 2023.

The business and visit visa fees for Indian nationals were decreased and fixed on reciprocal terms. Saudi Arabia is the 12^th largest market in the world for Indian exports and is the destination for around 2% of India’s global exports.

Saudi Arabia is India's fourth-largest trading partner. More than 18% of India's crude oil imports are sourced from Saudi Arabia. India's imports from Saudi Arabia reached $42.03 Bn and exports to Saudi Arabia were worth $10.72 Bn registering an increase of 22.48% over last year. Total trade with Saudi Arabia accounted for 4.53% of India's total trade in FY 2022-23.

Major commodities of export from India to Saudi Arabia include rice, meat, electrical machinery and equipment, vehicles, mineral oils, organic chemicals, ceramic tiles, and apparel. Whereas, major commodities of import for India from Saudi Arabia are crude oil, LPG, fertilizers, chemicals, plastic and products thereof, aluminium and its articles, iron and steel, copper and its articles, raw hides and skin (other than fur skins) and leather etc.

Saudi Arabia hosts a 2.4 Mn Indian community which has been living in harmony and contributing to the development and progress of Saudi Arabia. Indians in Saudi Arabia send back remittances to the tune of $11 Bn or more annually.

The year 2021-22 commemorates 75 years of establishment of diplomatic relations between India and Saudi Arabia. As part of this celebration, the Embassy is conducting a host of events from May 2021 till August 2023, which include cultural events, exhibitions, academic activities like quizzes, international film festivals, and sports activities like golf tournaments and cycle rallies.

India and Saudi Arabia signed a MoU on cooperation in the area of tourism. Saudi Arabia has recently opened its door for tourism which will further strengthen these relations. India has extended the e-visa facility to Saudi nationals.

On 21 July 2018, the 4^th International Day of Yoga was celebrated with fervour in the prestigious Al-Madi Park of the King Abdulaziz Historical Centre, Riyadh. This marked the first celebration of Yoga in the public domain in the Kingdom. The event witnessed huge participation from Saudis, diplomatic corps, officials, journalists, businessmen and the Indian diaspora. Two Saudi female Yoga trainers led the Yoga demonstrations on the occasion.

Janadriyah 2018: India successfully participated as ‘Guest of Honour’ in the 32^nd edition of the prestigious Saudi National Festival of Heritage and Culture – Janadriyah from 7 – 28 February 2018. The “Guest of Honour’ privilege comes in the backdrop of the historic visit of the Hon’ble PM to Riyadh in April 2016 and the historic bilateral relations.