Economic and political synergy: Saudi-Indian ties deepen with Crown Prince's visit

  • 9/11/2023
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The eagerly awaited official visit of Saudi Crown Prince and Prime Minister Mohammed bin Salman to India holds great significance for both nations. This visit offers promising prospects for deepening and strengthening bilateral cooperation between the two countries. It marks the fourth high-level visit in the past eight years, following a prior visit by the Saudi Crown Prince to India in February 2019 and two visits by the Indian Prime Minister to Saudi Arabia in 2016 and 2019. In recent years, both countries have expressed a desire not only to solidify their bilateral relations but also to enhance them. Their motivation is driven by a historical relationship between the world"s largest democracy and the largest economy in the Arab world and the Middle East, along with their rapid economic growth and collaborative efforts within the G20 and other international forums. Moreover, their coordination in the Saudi-Indian Strategic Partnership Council covers numerous political, security, economic, and trade-related issues. For India, its relationship with Saudi Arabia holds significant importance. Approximately 1.88 million Indians reside in Saudi Arabia, constituting nearly a quarter of the total foreign residents in the country, as per official figures from last year. Additionally, India heavily relies on oil imports from Saudi Arabia to meet its energy needs for its vast economy, which the International Monetary Fund has deemed a "bright spot in the global economy." On the other hand, Saudi Arabia recognizes India as one of the world"s fastest-growing economies, with a GDP now exceeding $3.1 trillion, making it the fifth-largest economy globally. Official Indian data reveals that over 20% of India"s crude oil imports come from Saudi Arabia, and during the 2022-2023 fiscal year, Indian imports from Saudi Arabia surpassed $42 billion, with exports to Saudi Arabia reaching $10 billion, an increase of over 22% from the previous year. Both leaders, the Saudi Crown Prince and the Indian Prime Minister, have enacted transformative changes that have propelled both nations toward economic progress and social advancement. Prime Minister Narendra Modi welcomed recent reforms undertaken by the Saudi Crown Prince to promote moderation and openness in Saudi Arabia. In turn, the Saudi Crown Prince expressed admiration for the Indian model of inclusivity, pluralism, and tolerance during his official visit to India in February 2019. Saudi Arabia also extended assistance to India during the COVID-19 pandemic, sending much-needed oxygen during the second wave when the South Asian nation faced a severe oxygen shortage. Both nations have collaborated in various sectors, aligning with Saudi Arabia"s Vision 2030 development goals. Areas of cooperation include boosting bilateral investments and ongoing discussions, according to Indian sources, about cooperation in the digital economy, mining, refining and petrochemicals, infrastructure, agriculture, manufacturing, education, and healthcare. Diplomatic relations between the two countries date back for over seven decades, with the current year marking the 76th anniversary. Historical sources reveal that relations were established shortly after India gained independence in 1947. King Faisal, who was Crown Prince at the time, visited India in May 1955, laying the groundwork for the subsequent development of bilateral ties. This momentum continued with King Saud"s visit to India in November of the same year, followed by an official visit by Indian Prime Minister Jawaharlal Nehru to Saudi Arabia in the following year. Another significant visit was that of Prime Minister Indira Gandhi to Saudi Arabia in 1982, leading up to the historic visit of King Abdullah bin Abdulaziz to India in 2006, which resulted in the signing of the "Delhi Declaration," giving fresh impetus to bilateral relations. Since then, India and Saudi Arabia have engaged in multiple political dialogues, including the "Riyadh Declaration" signed in 2010 during the visit of then-Indian Prime Minister Manmohan Singh to Saudi Arabia. This visit marked the first official visit by an Indian Prime Minister to Saudi Arabia in 28 years and included cooperation agreements across various domains, including counter-terrorism, information sharing, and enhancing economic, trade, and technological collaboration. Prime Minister Narendra Modi also visited Saudi Arabia in April 2016, further solidifying this growing partnership. Observers from both sides anticipate that bilateral relations will continue to evolve, not only in economic aspects but also in political, security, and military cooperation. This expectation is grounded in several factors, including the shared history of relations spanning decades, the economic growth witnessed by both nations, their collaboration within the G20 and other international forums, and their joint efforts within the Saudi-Indian Strategic Partnership Council, which addresses various political, security, economic, and trade-related matters.

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