India Saudi Arabia Relations: Trade Agreement, Summit, Partnership - UPSC Notes

Over the years, India and Kingdom of Saudi Arabia have built a multifaceted partnership driven by strategic alignment. Strategically located in the West Asia / Asia, Kingdom of Saudi Arabia plays an indispensable role in global politics and security. India established diplomatic ties with Kingdom of Saudi Arabia in 1947, setting the stage for a lasting and multifaceted partnership. India and Kingdom of Saudi Arabia share a Embassy, each having an embassy in the others capital, fostering strong bilateral ties. The relationship between India and Kingdom of Saudi Arabia holds Key regional power, energy security, counter-terrorism, trade partner, with an emphasis on defense collaboration, economic synergy, cultural exchanges, and collective global security efforts. 

• India and Kingdom of Saudi Arabia cooperate in Energy, trade, investment, security, defense, culture, tourism such as defense, nuclear energy, trade, space, oil and gas, cybersecurity, culture, and education. 
• To enhance mutual cooperation, India and Kingdom of Saudi Arabia have formalized several agreements, particularly in the realm of Delhi Declaration (2006), Riyadh Declaration (2010), Strategic Partnership Council (2019). 
• India and Kingdom of Saudi Arabia maintain a trade volume of USD 4298 billion (FY 2023-24), illustrating their growing economic partnership. 
• India regularly exports Petroleum products, engineering goods, rice, chemicals, textiles to Kingdom of Saudi Arabia, supporting mutual trade ties and economic collaboration across multiple sectors. 
• India’s imports from Kingdom of Saudi Arabia largely consist of Crude oil, petroleum products, fertilizers, chemicals, plastics, showing consistent trade flows. 

India’s engagement with Kingdom of Saudi Arabia in Cooperation in IT, skill development, higher education supports digital transformation and academic excellence. Focused on India Saudi Arabia Relations, this article explores Strategic Summits, Diaspora Remittances, and Import-Export Trends to assist candidates in enhancing their GS Paper 2 and PSIR notes. 

India Saudi Arabia Relations Establishment of Diplomatic Ties

India and Kingdom of Saudi Arabia share a history that began with Ancient trade and cultural links, formal ties in 1947. The diplomatic history of India and Kingdom of Saudi Arabia includes significant visits like King Saud (1955), PM Nehru (1956), PM Indira Gandhi (1982), King Abdullah (2006), PM Manmohan Singh (2010), PM Modi (2016, 2019, 2025), Crown Prince Mohammed bin Salman (2019, 2023), which fostered long-term cooperation. 

• India’s engagement with Kingdom of Saudi Arabia was previously challenged by events like Cold War alignments, some differing regional perspectives historically. 
• The relationship between India and Kingdom of Saudi Arabia has evolved through distinct phases such as Initial warmth, Cold War coolness, post-2006 strategic partnership.

India Saudi Arabia Relations - Establishment of Diplomatic Ties
Initial Engagements	Ancient trade and cultural links, formal ties in 1947
High-Level Visits (Historic)	King Saud (1955), PM Nehru (1956), PM Indira Gandhi (1982), King Abdullah (2006), PM Manmohan Singh (2010), PM Modi (2016, 2019, 2025), Crown Prince Mohammed bin Salman (2019, 2023)
Past Conflicts or Tensions	Cold War alignments, some differing regional perspectives historically
Phases of Engagement	Initial warmth, Cold War coolness, post-2006 strategic partnership

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Strategic & Political Cooperation of India Saudi Arabia Relations

The significance of India and Kingdom of Saudi Arabia ties is of Key regional power, energy security, counter-terrorism, trade partner, highlighted by their defense cooperation, economic collaboration, cultural exchanges, and common objectives in global security. 

• Joint exercises (Al Mohed Al Hindi, SADA TANSEEQ), industry collaboration reflects the growing military collaboration between India and Kingdom of Saudi Arabia through joint training, arms trade, and naval support. 
• Strong cooperation, intelligence sharing, combating terror financing helps India and Kingdom of Saudi Arabia protect their citizens through joint monitoring and timely information exchange. 
• Emerging area of cooperation, MoUs on IT between India and Kingdom of Saudi Arabia enhances cyber resilience, supports tech transfer, and drives growth in the digital economy. 
• G20, United Nations, India observer at OIC enable India and Kingdom of Saudi Arabia to cooperate on shared goals and tackle international challenges collectively. 
• India and Kingdom of Saudi Arabia work closely on Cornerstone, crude oil, LPG, strategic petroleum reserves, renewables, including initiatives to increase the share of renewables in their energy mix. 
• India and Kingdom of Saudi Arabia are dedicated to advancing MoU for peaceful purposes through collaborative research, technological innovation, and joint exploration activities. 
• India and Kingdom of Saudi Arabia have strengthened ties through initiatives like Agreements to boost tourism (2019), regular air services to promote greater connectivity and travel between their citizens. 
• India and Kingdom of Saudi Arabia are working through Double Taxation Avoidance Agreement (DTAA) in force to minimize tax evasion risks and improve cross-border compliance.

Strategic & Political Cooperation of India Saudi Arabia Relations
Strategic Importance	Key regional power, energy security, counter-terrorism, trade partner
Defense Cooperation	Joint exercises (Al Mohed Al Hindi, SADA TANSEEQ), industry collaboration
Counter-terrorism / Intelligence	Strong cooperation, intelligence sharing, combating terror financing
Cyber-security & Tech Sharing	Emerging area of cooperation, MoUs on IT
Multilateral Groupings	G20, United Nations, India observer at OIC
Energy Cooperation	Cornerstone, crude oil, LPG, strategic petroleum reserves, renewables
Space Cooperation	MoU for peaceful purposes
Tourism & Air-Services Agreements	Agreements to boost tourism (2019), regular air services
Taxation Agreements	Double Taxation Avoidance Agreement (DTAA) in force

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Trade and Economic Overview of India Saudi Arabia Relations

• Through key agreements in areas such as Delhi Declaration (2006), Riyadh Declaration (2010), Strategic Partnership Council (2019), India and Kingdom of Saudi Arabia aim to boost their cooperative efforts. 
• The trade volume between India and Kingdom of Saudi Arabia has reached USD 4298 billion (FY 2023-24), highlighting the strengthening of their economic ties. 
• Investment flows involve Saudi investment in India ~USD 10 billion, Indian ~USD 3 billion, as well as shared projects aimed at enhancing mutual investment ties. 
• Regular meetings like Strategic Partnership Council, High-Level Task Force on Investment, usually taking place annually or every two years, aim to promote and assess the trade and investment relationship between India and its partner country. 
• The recorded export volume from Kingdom of Saudi Arabia to India is USD 3142 billion (FY 2023-24 imports from Saudi Arabia). 
• As part of steady trade relations, India exports Petroleum products, engineering goods, rice, chemicals, textiles to Kingdom of Saudi Arabia to meet shared economic interests. 

India exported products to Kingdom of Saudi Arabia amounting to USD 1156 billion (FY 2023-24 exports to Saudi Arabia). L&T, TATA, Wipro, TCS, Shapoorji Pallonji, others represent the Indian private sector’s presence in Kingdom of Saudi Arabia.

Trade and Economic Overview of India Saudi Arabia Relations
Bilateral Trade Volume (Latest FY)	USD 4298 billion (FY 2023-24)
Top Indian Exports to Partner	Petroleum products, engineering goods, rice, chemicals, textiles
Top Indian Imports from Partner	Crude oil, petroleum products, fertilizers, chemicals, plastics
Key Bilateral Agreements	Delhi Declaration (2006), Riyadh Declaration (2010), Strategic Partnership Council (2019)
Investment Flows (FDI both ways)	Saudi investment in India ~USD 10 billion, Indian ~USD 3 billion
Joint Economic Commissions / Dialogues	Strategic Partnership Council, High-Level Task Force on Investment
Lines of Credit	N/A
Export to India (In $)	USD 3142 billion (FY 2023-24 imports from Saudi Arabia)
Import from India (In $)	USD 1156 billion (FY 2023-24 exports to Saudi Arabia)
Indian Companies Operating There	L&T, TATA, Wipro, TCS, Shapoorji Pallonji, others

Socio-Cultural & Diaspora Engagement

Through the powerful presence of their diaspora, India and Kingdom of Saudi Arabia collaborate effectively, reinforcing Living bridge, economic contribution, skill transfer. Yoga, films, Pravasi Parichay, heritage, arts, sports help India and the partner country celebrate their differences and find common ground. By promoting Scholarships, institutional collaborations, skill development programs, India and the partner country are creating more chances for education. 

• Kingdom of Saudi Arabia, primarily consisting of students and professionals, enhances cultural, educational, and economic connections, with numbers around Approximately 27 million. 
• Through the deployment of Defense deals, joint exercises, cultural diplomacy, diaspora, yoga, India and Kingdom of Saudi Arabia seek to reinforce their strategic position and elevate their influence on the world stage.
• India and Kingdom of Saudi Arabia share strong bilateral relations, with Significant source of remittances to India playing a pivotal role in enhancing economic development.

Socio-Cultural & Diaspora Engagement
Indian Diaspora	Approximately 27 million
Diaspora Remittances	Significant source of remittances to India
Role of Diaspora	Living bridge, economic contribution, skill transfer
Cultural Exchanges	Yoga, films, Pravasi Parichay, heritage, arts, sports
Education Cooperation	Scholarships, institutional collaborations, skill development programs
Hard Power & Soft Power Instruments	Defense deals, joint exercises, cultural diplomacy, diaspora, yoga

India Saudi Arabia Relations Recent Developments

Through PM Modi to Saudi Arabia (April 2025), Crown Prince to India (September 2023), India and Kingdom of Saudi Arabia have strengthened bilateral cooperation across strategic and economic sectors. Energy, banking, investment, manufacturing, anti-corruption, desalination (September 2023) highlight mutual efforts to strengthen partnerships across priority areas of bilateral interest. 

• West Coast Refinery project, various infrastructure and energy collaborations underline key areas of engagement between India and Kingdom of Saudi Arabia. 
• India and Kingdom of Saudi Arabia have acknowledged Regional geopolitical complexities, oil price volatility, labor issues as areas needing constructive resolution. 
• Strengthening strategic partnership, expanding non-oil trade, Vision 2030 alignment are central to future planning between India and Kingdom of Saudi Arabia.

India Saudi Arabia Relations Recent Developments & Future Outlook
Recent High-Level Visits	PM Modi to Saudi Arabia (April 2025), Crown Prince to India (September 2023)
Recent Agreements Signed	Energy, banking, investment, manufacturing, anti-corruption, desalination (September 2023)
Ongoing Projects	West Coast Refinery project, various infrastructure and energy collaborations
Challenges / Issues	Regional geopolitical complexities, oil price volatility, labor issues
Future Prospects	Strengthening strategic partnership, expanding non-oil trade, Vision 2030 alignment

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UPSC Relevance of India Saudi Arabia Relations

• Questions on India’s bilateral relations with Kingdom of Saudi Arabia may feature in UPSC Prelims under International Relations or Current Affairs.
• Economic cooperation and trade agreements with Kingdom of Saudi Arabia support GS3 answers related to India’s external sector and economic diplomacy.
• The bilateral framework showcases how India’s foreign policy aligns with constitutional and ethical principles.
• In PSIR, India–Kingdom of Saudi Arabia relations directly relate to Paper 2 topics on Indias foreign policy and bilateral ties.

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