RIYADH: Trade and economic relations between India and Saudi Arabia have taken another step forward after the two countries held their first High-Level Task Force on Investments earlier this week.
The body was established in 2023, when the kingdom’s Crown Prince Mohammed bin Salman paid an official visit to the Asian nation, a visit that came four years after he pledged $100 billion worth of investments in India during a trip to New Delhi.
The first meeting of the task force was held virtually on July 30 and was co-chaired by Saudi Energy Minister Prince Abdulaziz bin Salman and PK Mishra, Principal Secretary to Indian Prime Minister Narendra Modi.
During the talks, India invited the Public Investment Fund of Saudi Arabia to set up an office in the Asian nation in a bid to attract funds from the Kingdom.
“Constructive discussions were held on various bilateral investment opportunities in different areas of public and private sectors, including refining and petrochemicals, new and renewable energy, power, telecommunications, innovation, among others,” the Indian Prime Minister’s Office said in a statement after the high-level task force meeting.
The statement further said that an authorised delegation, led by the country's Oil Secretary, will visit Saudi Arabia for further discussions on mutually beneficial investments in the oil and gas sector.
Both countries also agreed to hold regular consultations between their respective technical teams to advance discussions and reach agreement on specific investments.
India also invited the Saudi Energy Minister to visit New Delhi for the next round of high-level task force meetings.
India and Saudi Arabia: A History of Long-Standing Relations
Though India and Saudi Arabia have enjoyed strong economic and trade relations since 1947, their bilateral ties took a new turn after the signing of the Delhi Declaration in 2006.
It was followed by the Riyadh Declaration in 2010, when then Indian Prime Minister Manmohan Singh visited Saudi Arabia, elevating bilateral relations to a strategic partnership between the two nations.
Subsequently, Modi's visit to Saudi Arabia in 2016 captured the spirit of greater cooperation in the political, economic, security and defence sectors between Riyadh and New Delhi.
When the Crown Prince visited India in 2023, on the sidelines of the G20 leaders' summit and to co-chair the first leaders' meeting of the India-Saudi Strategic Partnership Council, both countries signed eight agreements in various sectors, including energy, banking and investment, as well as manufacturing, archival cooperation, anti-corruption and water desalination.
Apart from growing economic and trade ties, India and Saudi Arabia also share a strong emotional and cultural bond, with the Kingdom being the most sought-after destination for Indian talent and religious tourists.
Data from the Indian embassy in Riyadh revealed that more than 2.65 million Indians live in Saudi Arabia, which serves as a “living bridge between the two countries”.
The embassy further added that in recent years, cultural cooperation between India and Saudi Arabia has also expanded into new areas of film and entertainment, sports activities such as cricket and football, and tourism exchanges.
Latest Saudi Arabia-India Trade Statistics
According to data from the Consulate General of India in Jeddah, Saudi Arabia is the Asian country's fourth largest trading partner, while India is the Kingdom's second largest trading partner.
The Consulate General of India also recognizes that Saudi Arabia is not just a trading partner, but an “important pillar for its energy security and a major economic partner for investments, joint ventures and technology transfer projects.”
Data from the General Statistics Authority reveals that in 2023, Saudi Arabia's exports to India amounted to SR113.35 billion ($30.20 billion), while the Kingdom's imports to the Asian nation amounted to SR43.57 billion.
In 2023, Saudi Arabia was the third largest exporter of crude oil to India, with 39.5 million tonnes, or 16.7% of the country's total oil imports.
Another report released by GAST in July highlighted that outbound shipments from Saudi Arabia to India were worth SR 8.03 billion in May.
In terms of non-oil exports, the Kingdom exported goods worth SR2.23 billion in May, with chemicals and related products topping the list with shipments worth SR1.27 billion.
In the same month, Saudi Arabia exported plastic and rubber products to India worth a total of SR 448 million, while outgoing shipments of base metals reached SR 347.8 million.
As for imports, shipments worth SR 3.54 billion arrived in Saudi Arabia from India in May.
Mechanical equipment and household appliances were the most important goods imported from India to the Kingdom in May, totalling SR886.1 million.
In the same month, India exported chemicals and allied products worth SR470.4 million, followed by plant products and basic metals worth SR580.3 million and SR342.2 million respectively.
Developments in the tourism sector
Apart from trade relations, India and Saudi Arabia also share strong ties in the tourism sector.
According to the Saudi Tourism Authority, over 1.5 million Indian tourists visited the Kingdom in 2023, a 50 percent increase from the previous year.
In a bid to increase the number of Indian tourists visiting the Kingdom, the STA organised networking events in Mumbai, Ahmedabad, Bengaluru and Delhi and interacted with tourism industry associations in February.
The STA, as part of its broader tourism strategy, aims to attract 7.5 million Indian visitors over the next seven years.
Data from India's Ministry of External Affairs reveals that more than 170,000 Indian pilgrims performed Hajj in 2024, marking a significant increase from 139,000 and 57,000 in 2023 and 2022, respectively.
Air connectivity between Saudi Arabia and India also increased by 31 percent between 2019 and 2023. Flights now connect 12 major hubs in India with Saudi cities including Riyadh, Jeddah and Dammam.
Saudi Arabia's growth as a global tourist destination is fueled by the Kingdom's major projects, such as NEOM, along with developments in the areas surrounding Alula, Diriyah and the Red Sea.
India is also emerging as a favorite destination for tourists from Saudi Arabia.
A report released in July by travel app Wego revealed that Saudi Arabia was one of the top five sources of Middle Eastern travellers to India.
The analysis found that Riyadh to New Delhi and Riyadh to Lucknow were the most popular routes among Middle Eastern travellers in the first half of this year.
“The findings suggest a dynamic travel landscape where India remains a key destination for both business and leisure travellers from across the world, driven by various factors such as tourism, entrepreneurial ventures and family ties,” said Bernard Corraya, general manager, Wego India office.
