Hindu Editorial Analysis : 21-September-2023
The relationship between New Delhi and Riyadh has seen a notable improvement in recent years. These two nations, India and Saudi Arabia, have a long history of diplomatic engagement, and their collaboration has evolved significantly over time. In this essay, we will explore the establishment of their relations, the milestones that have enhanced their partnership, and the challenges they face in this dynamic geopolitical landscape.
Establishment of Diplomatic Relations
India and Saudi Arabia established diplomatic relations in 1947, setting the foundation for future cooperation between the two countries.
Delhi and Riyadh Declarations
The relationship reached significant milestones with the Delhi Declaration in 2006 and the Riyadh Declaration in 2010. These declarations elevated bilateral ties to a strategic partnership, indicating a commitment to deeper cooperation.
Strategic Partnership Council (SPC) Agreement
In 2019, during Indian Prime Minister Modi’s visit to Riyadh, the Strategic Partnership Council (SPC) Agreement was signed, creating a high-level council to oversee various aspects of the Indo-Saudi relationship. This agreement led to the establishment of subcommittees focusing on political, security, social and cultural cooperation, as well as the economy and investments.
Economic Ties
India and Saudi Arabia have built a strong economic partnership, with bilateral trade valued at $52.76 billion in FY 2022-23. This growing economic relationship benefits both nations:
- India is Saudi Arabia’s second-largest trade partner.
- Saudi Arabia is India’s fourth-largest trade partner.
- Over 2,783 Indian companies have invested approximately $2 billion in Saudi Arabia.
- Saudi Arabia has made direct investments of $3.15 billion in India.
Energy Cooperation
Saudi Arabia plays a crucial role in ensuring India’s energy security. It ranks as India’s third-largest source of crude oil and petroleum products. In FY23:
- India imported 39.5 million metric tonnes of crude from Saudi Arabia.
- India’s LPG imports from Saudi Arabia accounted for 11.2% of its total petroleum product imports.
Defence Partnership
The defence partnership has witnessed remarkable growth, with both nations engaging in naval cooperation and joint exercises. They are also exploring joint development and production of defence equipment.
Indian Diaspora in Saudi Arabia
The Indian community in Saudi Arabia, with over 2.4 million members, contributes significantly to the nation’s development. They serve as a bridge connecting the two countries.
Recent Engagements Between India and Saudi Arabia
Recent engagements between India and Saudi Arabia have further strengthened their relationship:
- The India-Middle East-Europe Economic Corridor, a massive infrastructure project, was announced during Crown Prince Mohammed bin Salman’s visit to India.
- The first meeting of the India-Saudi Arabia Strategic Partnership Council resulted in eight agreements, including upgrading their energy partnership and exploring a free trade agreement with the Gulf Cooperation Council.
Challenges
Despite the positive developments, challenges persist in India-Saudi Arabia relations:
- Riyadh’s economic aid to Pakistan contradicts its security cooperation commitments with India in combating terrorism.
- China’s increasing influence in the Middle East may indirectly benefit Pakistan, complicating the dynamics of regional geopolitics.
Why In News
In recent years, the New Delhi-Riyadh partnership has been steadily strengthening, fostering deeper diplomatic ties and bolstering cooperation across various sectors. This collaborative momentum has not only benefited both nations but also contributed positively to regional stability in the Middle East and South Asia.
MCQs about India-Saudi Arabia: Nurturing a Robust Partnership
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What key challenge exists in India-Saudi Arabia relations related to Pakistan?
A. Economic competition
B. Security cooperation
C. Terrorism financing
D. Energy trade
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What is the significance of the Delhi and Riyadh Declarations in India-Saudi Arabia relations?
A. They marked the beginning of diplomatic ties.
B. They elevated bilateral ties to a strategic partnership.
C. They initiated trade agreements.
D. They focused on cultural cooperation.
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What was the key outcome of the 2019 visit by the Indian Prime Minister to Riyadh?
A. Signing of the Delhi Declaration
B. Establishment of the Strategic Partnership Council (SPC) Agreement
C. Increase in LPG imports from Saudi Arabia
D. Formation of the India-Middle East-Europe Economic Corridor
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