Following the recent unveiling of the India-Middle East-Europe Economic Corridor (IMEC) during the G20 Summit, India and Saudi Arabia have inked eight agreements, reaffirming their commitment to enhancing cooperation across various sectors, including energy, digitalization, and security.
A Bilateral Meeting with Strategic Significance
Indian Prime Minister Narendra Modi engaged in a bilateral meeting with Saudi Crown Prince and Prime Minister Mohammed bin Salman Bin Abdulaziz Al-Saud, commonly known as MBS. They jointly chaired the inaugural session of the India-Saudi Arabia Strategic Partnership Council, established in 2019. PM Modi emphasized the importance of this partnership, given the stature of both nations as significant, rapidly growing economies. MBS praised India for its role in the G20 Summit and expressed optimism about future collaborations.
Agreements Spanning Diverse Fields
During the meeting, the two nations signed eight pivotal agreements. These include the transformation of their hydrocarbon energy partnership into a comprehensive one encompassing renewable energy, petroleum, and strategic reserves. Furthermore, they established a joint task force for a $100 billion Saudi investment, with half of this earmarked for a refinery project along India’s western coast. Plans for enhanced interconnectivity were also discussed, covering areas such as ports, railways, roads, power, gas grids, and optical fiber networks.
IMEC and Counterbalancing China’s Belt-and-Road Initiative
India and Saudi Arabia’s collaboration on interconnectivity extends to the larger framework of the India-Middle East-Europe Economic Corridor (IMEC), which is set to connect multiple countries, including the United States, Saudi Arabia, India, the European Union, and the United Arab Emirates. IMEC is seen as a response to China’s Belt-and-Road Initiative.
Diverse Agreements for Broader Cooperation
In addition to energy and connectivity, the agreements span diverse areas, such as anti-corruption cooperation, investment entities, small and medium enterprise banks, the National Archives, and desalination and renewable energy projects. Discussions also centered around the possibility of trading in local currencies and expediting negotiations for a free trade agreement with the Gulf Cooperation Council, of which Saudi Arabia is a member.
Strengthening Economic Ties
Both nations expressed their interest in deepening economic ties and exploring investment opportunities across various sectors. They are keen on exploring cooperation in payment systems, including the acceptance of RuPAY cards in Saudi Arabia, particularly for the benefit of Indian pilgrims visiting Haj and Umrah.
Robust Trade Relations
India and Saudi Arabia acknowledged the significance of their trade relationship, with bilateral trade surpassing $52 billion in 2022-23, marking a remarkable 23% growth. India ranks as Saudi Arabia’s second-largest trade partner, and Saudi Arabia is the fourth-largest trade partner for India.
Collaboration in Defence and Counterterrorism
The two countries emphasized their cooperation in the defence sector, with discussions on joint development and production of defence equipment. They also strongly condemned terrorism in all forms and pledged to prevent the use of terrorism as a means to destabilize other nations.
Commitment to Afghanistan’s Stability
India and Saudi Arabia highlighted the importance of achieving security and stability in Afghanistan. They stressed the need for an inclusive government that represents all segments of the Afghan population and prevents Afghanistan from becoming a safe haven for terrorist and extremist groups.
India’s Appreciation
India expressed gratitude to Saudi Arabia for its support of Indian expatriates and its assistance in evacuating Indian nationals stranded in Sudan. Additionally, Saudi Arabia’s warm hospitality to Indian Haj and Umrah pilgrims was acknowledged.
A Flourishing Partnership
In the evening, a banquet hosted by President Droupadi Murmu celebrated the vibrant Indian expatriate community in Saudi Arabia, emphasizing the nurturing environment that Saudi Arabia provides for their growth and prosperity.