The trade between Saudi Arabia and India had grown even amid global challenges, with energy, agriculture and fertilizers as key sectors, Prime Minister Narendra Modi said in an interview to Arab News on his two-day visit to Saudi Arabia. Modi is visiting the country on the invitation of Crown Prince Mohammed bin Salman.
“Indian companies have also maintained a strong presence across various sectors in Saudi Arabia,” Modi told the Saudi Arabian newspaper, welcoming deeper integration of Saudi and Indian businesses, particularly in emerging sectors like green hydrogen and technology.
Modi highlighted that the two countries are working on a Bilateral Investment Treaty and the proposed Free Trade Agreement between India and GCC has immense potential to transform the economic relationship between India and Saudi Arabia, and the region in general.
This is Modi’s third visit to the country since 2016. He also highlighted how bilateral relations had expanded significantly since the creation of the Strategic Partnership Council in 2019 while describing the Kingdom as “a trusted friend and strategic ally”.
Modi and the Crown Prince will co-chair the second meeting of the Strategic Partnership Council, established during the prime minister’s 2019 visit to strengthen bilateral ties.
The Indian Prime Minister also pointed to growing defense cooperation and landmark joint military exercises as signs of increasing strategic trust between the two nations.
“While sectors like energy, agriculture and fertilizers are the main areas of our trade, efforts at diversification have borne fruits. Indian businesses and Saudi industry are building stronger connections,” he said, adding that building stronger connections between the two nation’s businesses and industry and enhancing investment partnership is adding resilience to this relationship.
Modi said that the trade ties between the two countries have survived even amidst several global challenges and have grown further.
“Saudi Arabia is a leading energy partner for India. Likewise, India is contributing to food security in Saudi Arabia. I am told people in Saudi Arabia prefer Indian rice! India too loves Saudi dates,” Modi told Arab News.
The prime minister also invited Saudi companies to take advantage of opportunities in India in sectors such as next-generation infrastructure, logistics, renewable energy, healthcare, utilities, innovation, start-ups and “blue economy”. “Deeper engagements and two-way collaborations between companies of both countries will go a long way in strengthening the bilateral economic partnership,” he said.
Saudi Arabia has been one of the top suppliers of crude oil to India. Saudi-based Saudi Aramco has also showcased its interest in investing in the Indian oil sector. The company was about to close a deal with India’s Reliance Industries back in 2019 but the deal fell apart after two years. Now, there have been renewed talks of Aramco’s re-entry into the Indian market. In March, Saudi Arabia remained the third largest oil supplier to India, as per data by Kpler.
“Energy has been an important pillar of our economic partnership. Saudi Arabia has been a strong and reliable energy partner for us. It is one of our top suppliers of crude and other petroleum products. As India seeks to become a developed country, our energy demands will continue to grow. And Saudi Arabia will remain a close partner in our energy security. As strategic partners we agree that our energy cooperation is not limited to mere buyer-seller relationships. We are also exploring joint projects in refineries and petrochemicals,” Modi said.
On the renewable energy front, Modi said that there is an immense scope for the two countries to collaborate in the sector. “This includes the areas of supply chains, circular economy, energy efficiency and green hydrogen. As partners in the International Solar Alliance, both countries can work toward innovative solutions for future energy needs,” he said. India has laid an ambitious target of achieving 500 GW renewable energy target by 2030.
Speaking about the India-Middle East-Europe Economic Corridor (IMEEC), launched during the G20 Summit in September 2023, Modi said the project would be “a key catalyst of commerce, connectivity and growth in the entire region.”
The minister informed that the country is working on feasibility studies for electricity grid interconnectivity between India and Saudi Arabia and the wider region. “As you can see, we are moving ahead with the vision of a comprehensive energy partnership between our two countries,” he added.
Talking about the corridor, Modi said that it will facilitate development of resilient and dependable supply chains, increase trade accessibility and improve trade facilitation. The corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs and lower greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East, he said.
India and Saudi Arabia are working on clean and green hydrogen and related supply chains under this initiative, Modi said calling the corridor the new Silk Route of the 21st century that will bring benefit to the generations to come.
The prime minister also noted that other than strengthening energy ties, the two nations have seen steady progress in security cooperation too primarily in areas such as counterterrorism, combating extremism, disrupting terror financing and tackling drug trafficking. He said that India and Saudi Arabia are also exploring new frontiers of cooperation in cybersecurity, recognizing its growing importance in today’s interconnected world.
“I am glad that we have been able to meet some needs of the armed forces in Saudi Arabia. We support deeper engagement between private-sector players from both countries. We would welcome Saudi investment into the defense manufacturing sector in India that has been opened for private investment,” Modi said.
India has emerged as an important supplier of defense equipment to more than 100 countries around the world.
During his visit to the Kingdom, Modi seeks to deepen ties with the major oil exporter amidst rising geopolitical uncertainty and US President Donald Trump’s emerging tariff policy. The two countries are set to sign at least six memoranda of understanding (MoUs) during Modi’s visit to Jeddah.
According to the news agency, PTI, Modi is also expected to discuss issues relating to Hajj, including the quota for Indian pilgrims, during his meeting with the Crown Prince and Prime Minister of Saudi Arabia, Mohammed bin Salman Al Saud.
The two sides are expected to sign agreements in the fields of space, energy, health, science and scientific research, culture and advanced technology.