Source: The Hindu
India and Saudi Arabia have reached an agreement to cooperate in order to balance the dynamics of the world energy market and improve the stability of the world oil markets. They underlined how important it is to provide supply security for all energy sources in international markets. The parties also agreed that efforts should be made to develop energy-related supply chains and projects, facilitate business collaboration, improve energy efficiency collaboration, rationalize energy use in the transportation, industry, and building sectors, and increase awareness of the significance of energy efficiency
Regarding climate change, both parties reiterated the significance of upholding the tenets of the Paris Agreement and the UN Framework Convention on Climate Change, as well as the necessity of creating and executing climate accords that prioritize emissions.
The significance of collaboration in technology, particularly in cutting-edge fields like cybersecurity and artificial intelligence, was emphasized by both parties. Additionally, they were pleased to see the Telecom Regulatory Authority of India and the Communications, Space and Technology Commission of Saudi Arabia sign a Memorandum of Understanding for collaboration in the digital and regulatory domains.
Model Question:
“India–Saudi Arabia relations have evolved from an energy-based partnership to a multidimensional strategic relationship.” Discuss the key areas of cooperation and challenges in the current India–Saudi Arabia bilateral ties.
Model Answer:
India and Saudi Arabia share a historically cordial relationship rooted in trade, cultural exchanges, and strong people-to-people ties. In recent decades, the relationship has evolved significantly, expanding from an energy-centric engagement to a comprehensive strategic partnership.
Key Areas of Cooperation:
- Energy Security: Saudi Arabia is India’s second-largest crude oil supplier. With India aiming to diversify its energy basket, cooperation in renewables (especially green hydrogen) is emerging.
- Economic and Investment Ties: Saudi Arabia is a key partner in India’s FDI landscape, especially through the Public Investment Fund (PIF). Collaboration under Vision 2030 and India’s infrastructure goals has opened new investment opportunities.
- Strategic and Defence Cooperation: The 2019 elevation of ties to a Strategic Partnership Council has boosted political and security dialogues. Recent joint military exercises, and intelligence sharing enhance counter-terrorism cooperation.
- Diaspora and Remittances: Over 2.2 million Indians live in Saudi Arabia, contributing significantly to India’s remittance inflow. Efforts are ongoing to ensure their welfare and labor rights.
- Connectivity and Trade: The proposed India-Middle East-Europe Economic Corridor (IMEEC) highlights Saudi Arabia’s strategic importance in regional connectivity.
Challenges:
- Geopolitical divergences, especially concerning Pakistan and regional conflicts like Yemen.
- Volatility in oil prices and production cuts affecting India’s energy security.3
- Issues related to labor rights and treatment of migrant workers occasionally cause friction.
India–Saudi Arabia relations are witnessing a strategic shift with increasing convergence on energy diversification, regional security, and investment. By deepening trust and addressing mutual concerns, both nations can further consolidate their partnership in a rapidly changing global order.
