Image Credit: Wionews.com
Context
A high-level Saudi Arabia delegation paid a visit to its Secretary in an attempt to develop further bilateral cooperation in textile industry.
Key Highlights
- India and Saudi Arabia are bilaterally trading USD 41.88 billion in FY 2024-25.
- However, India became the second-largest supplier of Saudi Arabian textile and apparel industry with USD 517.5 million representing 11.2 per cent of the total textile and apparel imports in Saudi Arabia in 2024.
- The very fact that Saudi Arabia and India acknowledged each other as powerful partners in the sphere of petrochemical industries and Man-Made Fibre (MMF) and technical textile development respectively was one of the most important aspects of the meeting.
Brief on India and Saudi Arabia Relations
- Political Relations: In the year 1947, the two nations established political relations.
- This was as a result of the royal visit in 2006 which resulted in the signing of the Delhi Declaration and in 2010 the Riyadh Declaration was signed which elevated the bilateral relationship to a strategic partnership.
- Strategic Partnership Council (SPC): In 2019, the Indian PM paid a visit to Riyadh and formed a higher-order council to direct the Indo-Saudi relationship.
- Economic Relations: Saudi Arabia, India are the second and fourth largest trade partners respectively.
- In FY 2023-24, bilateral trade stood at USD 42.98 billion in which the exports and imports of India were USD 11.56 billion and USD 31.42 billion respectively.
- Energy Cooperation: Saudi Arabia was also the third biggest source of Crude and Petroleum products by India during the FY 2023-24.
- During FY 2023-24, Saudi Arabia exported 33.35 MMT of crude oil to India amounting to 14.3 percent of the total crude oil imports in India.
- Saudi Arabia had been the 3 rd largest LPG source country of India in FY 2023-24 with 18.2 percent of total LPG imports of India in 2023-24.
- Indian diaspora: 2.7 million Indians were in Saudi Arabia in 2024. This is second only to the country of Bangladesh in terms of foreign employees.
- Defence cooperation: India and Saudi Arabia emphasise on defence relations development in order to be self-sufficient and create defence production.
- The Vision 2030 aims to transform Saudi Arabia into a defence producer and also be a defence consumer with the target of localising half of her spending.
- Munitions India Limited which is a Defence Public Sector Undertaking concluded a 250 mn ammunition deal with Saudi Arabia.
- Bharat Forge has sold Saudi Arabia the Advanced Towed Artillery Gun System (ATAGS) of 155mm.
- Joint exercises:
- Sada Tanseeq: The initial Army drill in 2024.
- Al Mohed Al Hindi: Bilateral naval exercise was inaugurated in 2022.
Areas of Concern
- Trade and Economic imbalance: It is even marked by the fact that the trade basket is dominated by the imports of Saudi crude oil and hence, the Indian trade deficit.
- Geopolitical Differences in the Region: India has maintained a normalised relationship with Iran, Israel and the U.S, but Saudi Arabia has made the connections with all of them complicated.
- Pakistan and Islamic world: Pakistan is inclined to exploit its religious position to influence the Saudi image and associate itself with the positions of OIC (Organisation of Islamic Cooperation).
- Labour and Diaspora Issues: The Saudi Arabian labour and Diaspora issue is of approximately 2 million Indian workers who have been in an exhibited wage conflicts and labour rights abuses.
Way Ahead
- Mutual interest in reducing the dependence on the importation of defence goods and manufacturing more on local level is a tremendous opportunity to both nations.
- The strategic freedom can be enhanced with the help of the joint venture and the collaboration in the evolution of the most modern technologies, such as AI and cybersecurity.
- India and Saudi Arabia can make the world defence environment development an important actor with their goals modified to align with Vision 2030 and Make in India.
Source: The Hindu
Prelims PYQ
(Q) Which of the following is not a member of ‘Gulf Cooperation Council’? (2016)
(a) Iran
(b) Saudi Arabia
(c) Oman
(d) Kuwait
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