Oil, investments and security: India, Saudi Arabia expand strategic ties

New Delhi, Apr 23: Prime Minister Narendra Modi was accorded a red-carpet welcome in Jeddah on April 22, marking his latest state visit to the Kingdom of Saudi Arabia. The meeting with Crown Prince and Prime Minister Mohammed bin Salman (MBS) was no mere diplomatic formality. Co-chairing the second India–Saudi Arabia Strategic Partnership Council (SPC), the two leaders announced a raft of new initiatives and reinforced their resolve to deepen an already expansive bilateral agenda. At the heart of the engagement was a mutual reaffirmation of trust built since their last meeting in New Delhi in September 2023. "The leaders noted with appreciation the intensification in bilateral engagement and the large number of high-level visits... that have built trust and mutual understanding," the joint press release stated.

The tone was one of warmth but also urgency, especially in the wake of the recent terror attack in Pahalgam, which claimed multiple lives. HRH Crown Prince “strongly condemned the ghastly terror attack” and extended his “deepest condolences,” with both leaders vowing to “combat terrorism tooth and nail.” The language, though formal, signals a rare convergence of security interests between the Gulf monarchy and India.

A $100 Billion Bet

Trade and investment remained central to the discussion, with the leaders reviewing the progress of the High-Level Task Force on Investment. The Saudi commitment to invest $100 billion in India, across sectors ranging from petrochemicals and energy to health and fintech was reiterated and given fresh impetus. Both sides welcomed an agreement to collaborate on building two new oil refineries in India, a move that not only underscores energy interdependence but also hints at Saudi Arabia’s long-term interest in anchoring itself in India's expanding consumer and industrial base. Modi went a step further, proposing financial innovations: “To further strengthen economic ties, both countries could work for connecting payment gateways and trade settlement in local currencies.” In an era where de-dollarization has become a talking point in global forums, such a move would be watched closely by other emerging economies.

Strategic Silk Roads

The leaders also assessed progress in the India-Middle East-Europe Economic Corridor (IMEEC), an ambitious trade and connectivity initiative first unveiled at the G20 summit in Delhi. While details remain sparse, the bilateral connectivity projects under the IMEEC umbrella suggest Saudi Arabia’s growing role as more than just an energy supplier, it seeks to be a pivotal node in a new transcontinental corridor rivalling China’s Belt and Road Initiative. The Strategic Partnership Council has, meanwhile, broadened its institutional architecture. Two new ministerial committees, Defence Cooperation and Tourism and Culture, have been established. This structural deepening reflects both countries’ desire to move beyond traditional energy diplomacy. On the security front, the move aligns with recent joint naval drills and growing interoperability between Indian and Saudi defence establishments. On the softer side, the cultural initiative is a nod to a younger Saudi Arabia eager to diversify its image under Vision 2030, and to India’s own soft power prowess, from Bollywood to yoga.

Diaspora and Devotion

The Prime Minister made a point of thanking the Kingdom for its support to the Indian diaspora, one of the largest expatriate communities in Saudi Arabia. He also expressed gratitude for the "support provided by the Saudi government for Indian Haj pilgrims," a reminder that people-to-people ties remain an important pillar of the bilateral relationship. Adding further momentum to the visit, the two countries signed four Memoranda of Understanding, covering areas as diverse as space cooperation, health, sports anti-doping efforts, and postal services. These may seem technocratic, but they reflect a modern diplomatic playbook: diversify engagements to build institutional resilience.

The meetings concluded with the signing of the SPC meeting’s minutes and a personal invitation from Modi to MBS to visit India for the third Council session. While such state visits often involve ceremonial excess, this meeting was different. It demonstrated that both Riyadh and New Delhi are serious about building a multipolar relationship, one that spans oil wells, orbital satellites, financial systems, and cultural exchanges. What remains to be seen is how swiftly and substantively these agreements translate into outcomes on the ground. With geopolitical equations shifting in the Middle East and the Indo-Pacific, this bilateral partnership is poised to play a larger role than mere headlines suggest.