India-Saudi Arabia Relations in 2025 Amid Saudi-Pakistan Strategic Defence Alliance: Facts, Developments & Strategic Reality

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Introduction

India and Saudi Arabia’s partnership has transitioned from ancient trade and cultural bonds to a modern strategic alliance. Recent rapid expansion in trade, investment, defence, technology, and global connectivity—alongside enduring people-to-people, religious, and cultural ties—positions this relationship as one of the key pillars of New Delhi’s West Asia policy.

Historical Evolution

  • Ancient Roots: Trade links date back over 5,000 years. Spices, textiles, and pearls from India were traded via Arab merchants, connecting civilizations and influencing language and cuisine.

  • Diplomatic Foundations: Modern ties began in 1947, with a strong non-aligned perspective. India’s Ambassador to Saudi Arabia was among the earliest envoys to be posted abroad after independence.

  • Milestone Visits:

    • 1955: King Saud’s visit to India, the first by a Saudi monarch.

    • Repeated reciprocal state visits, including those by King Abdullah (2006) and PM Narendra Modi (2016, 2019, 2024 and 2025), have underlined growing trust and ambition.

  • Declarations: The Delhi Declaration (2006) and Riyadh Declaration (2010) formally established a strategic partnership, later institutionalized through the Strategic Partnership Council (SPC) in 2019.

Political and Strategic Dialogue

  • Strategic Partnership Council:

    • Set up in 2019, upgraded in 2025; it coordinates cooperation through new ministerial committees (e.g., for defence, tourism, culture).

    • Regular exchanges at Foreign Minister and National Security Advisor levels help manage strategic interests and differences.

  • Geopolitical Coordination:

    • Close consultations on regional security (GCC, Iran), counter-terrorism, and maritime security are crucial due to shared interests in the Indian Ocean and Gulf.

Economic and Trade Ties

  • Trade Volume:

    • Bilateral trade crossed USD 42 billion in 2024–25. India is Saudi Arabia’s second-largest trading partner in Asia, and fourth globally.

    • India imports crude oil and petrochemicals, while exporting food, textiles, chemicals, and engineering goods.

  • Major Investments:

    • Saudi Public Investment Fund (PIF) invested over USD 7 billion in India’s Reliance, Jio, and other ventures.

    • Indian companies (L&T, TCS) contribute to Saudi infrastructure, IT, and services.

  • Future Prospects:

    • Ongoing talks for a bilateral investment treaty and FTA with GCC to reduce barriers and boost business.

Energy and Green Technology

  • Oil and Gas:

    • Saudi Arabia is India’s second-largest oil supplier. The long-term contracts stabilize both economies.

    • Joint investments in refineries and petrochemicals, including plans for a mega-refinery on the west coast of India.

  • Renewables and Green Hydrogen:

    • Cooperation in solar power and green hydrogen, aligning with Saudi Vision 2030 and India’s green energy ambitions.

    • India's “One Sun One World One Grid” initiative synergizes with projects in Saudi deserts to create solar energy exports.

Defence and Security

  • Joint Exercises and Capacity Building:

    • Regular high-level meetings (JCDC), defence MoUs, navy and airforce joint exercises since 2019.

    • India has exported ammunition and is developing joint R&D initiatives for modern weaponry.

  • Critical Sectors:

    • Maritime security in the Indian Ocean.

    • Counter-terrorism, intelligence sharing, and cyber-defence minerals and technology.

India–Middle East–Europe Economic Corridor (IMEC)

  • Geostrategic and Economic Significance:

    • Announced in 2023 at the G20 Summit; involves India, Saudi Arabia, UAE, Europe, and the US.

    • IMEC aims to create a multi-modal transport corridor (sea, rail, road, digital, and energy pipelines) from India through the Middle East (UAE, Saudi Arabia, Jordan, Israel) and onwards to Europe, reducing trade time by 40% and logistics costs by 30% compared to the Suez route.

    • Saudi Arabia has committed $20 billion to the project, unlocking greater FDI, green energy flows, and digital connectivity in the region.

    • The corridor complements India’s flagship initiatives like “Make in India” and “Digital India” by positioning it as a global trade and logistics hub.

    • It undermines Pakistan’s monopoly on regional connectivity, and reduces India’s strategic dependence on the INSTC and Chabahar routes through Iran.

  • Innovation and Sustainability:

    • Focuses on green logistics, data-driven transport, and climate-friendly energy infrastructure—integrating hydrogen, solar, and digital networks.

Cultural, Educational, and People-to-People Links

  • Diaspora and Labor:

    • Over 2.7 million Indians in Saudi Arabia serve as a vital economic and human link, sending significant remittances and contributing to development.

    • New agreements on labor standards, skills verification, and migrant welfare help protect and empower Indian workers.

  • Tourism and Hajj:

    • Hajj quota for Indians reset to 1.75 lakh in 2024. Digitization of Hajj processes, health apps, and e-tagging have facilitated safer journeys.

    • Tourism ties boosted with new Ministerial Committee and active engagement in international fairs and festivals.

  • Cultural Diplomacy:

    • Major events such as the Pravasi Parichay festival, Red Sea International Film Festival participation, performances by Indian maestros (e.g., Amjad Ali Khan, 2025) showcase vibrant engagement.

    • Yoga’s recognition as a sport in Saudi Arabia and bilateral MoU (2021) promote holistic cultural exchange.

  • Education and Research:

    • MoUs for higher education, scholarships, academic exchanges, and Arabic/Hindi language promotion.

    • Indian institutions offer opportunities for Saudi students; archives and museums collaborate on heritage preservation.

Technology, Health, and Climate Cooperation

  • Tech Transfer and Innovation:

    • Indian IT and start-ups partner with Saudi smart city and digital transformation projects (e.g., NEOM, Riyadh Digital City).

    • Joint plans for AI and FinTech innovation labs in Riyadh and Bengaluru.

  • Health Security:

    • MoUs on pharma trade, pandemic response, and telemedicine were signed during and after the COVID-19 pandemic.

    • Skill development and training of health professionals are ongoing priorities.

  • Climate Change Initiatives:

    • Shared commitments under Saudi Vision 2030 and India’s net zero targets encourage joint projects in clean energy, carbon capture, and global green alliances.

Multilateral and Regional Engagement

  • G20, GCC, and International Platforms:

    • Saudi Arabia and India coordinate at bodies like G20, OIC (Organization of Islamic Cooperation), and the UN on issues ranging from counter-terrorism to pandemic response.

    • India leverages the GCC platform for regional peace, especially given Iran-GCC rivalries and evolving US-China dynamics.

Challenges

  • Pakistan Factor:

    • Saudi-Pak Mutual Defence Agreement (2025) complicates India’s regional calculus, though Riyadh seeks to “balance sensitivities” between partners.

  • Geopolitical Tensions:

    • Instability in the Middle East (e.g., Israel-Hamas conflict) temporarily impacted IMEC momentum.

    • Differences on certain global issues (e.g., stance on Yemen, Syria) persist.

  • Labor Rights and Welfare:

    • Protection of Indian workers remains a recurring challenge, despite reforms.

  • Oil Price Volatility:

    • Fluctuations require continuous dialogue to ensure stable, predictable supplies and pricing.

  • Trade Diversification:

    • Dependency on oil; efforts are ongoing to diversify into tech, renewables, and services.

Way Forward

  • IMEC Operationalization:

    • Prioritize resolution of diplomatic bottlenecks to fast-track IMEC infrastructure, leveraging it as a platform for green trade, digital integration, and sustainable logistics.

  • Strategic Autonomy and Balancing:

    • Deepen engagement with both Saudi Arabia and GCC, while maintaining independent, multidimensional relations with Iran and other powers.

  • Innovation and Knowledge Partnerships:

    • Establish more joint research centers, technology parks, and academic collaboration, especially in areas like AI, renewables, and bio-health.

  • Human Capital and Skill Mobility:

    • Enhance labor rights and expand the skill development corridor for Indian migrants; set up high-level grievance and welfare redressal committees.

  • Green Energy Leadership:

    • Exploit the synergy between India’s solar innovation and Saudi green hydrogen, positioning both as global leaders in energy transition.

  • Cultural and Tourism Diplomacy:

    • Expand exchange programs, sports collaborations, and heritage preservation initiatives to nurture mutual understanding and tourism flows.

  • Multilateral Cooperation:

    • Jointly shape rules in global forums on digital, health, and climate governance; use G20 and IMEC for proactive, inclusive agenda-setting.

Conclusion

India–Saudi Arabia relations today encompass a strategic, multi-layered partnership. Anchored in history, strengthened by shared economic and energy interests, enriched through dynamic people-to-people ties, and powered by visionary projects like IMEC, this relationship offers immense promise. Continued dialogue, balanced geopolitics, and innovative collaboration will ensure both nations navigate challenges and seize the opportunities of a rapidly changing world.

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