Hindu Editorial Analysis : 25-September-2023
The recent state visit to India by Crown Prince Muhammad bin Salman of Saudi Arabia, coinciding with the G20 Summit in New Delhi, marked a significant moment in the ever-evolving relationship between the two nations. This visit resulted in the signing of several Memoranda of Understanding (MoUs) and agreements, further solidifying their ties. This essay explores the recent developments, the historical context of India-Saudi Arabia relations, their economic ties, energy cooperation, defense partnership, and the significance, as well as the challenges, that lie ahead.
Recent MoUs & Agreements
In the context of the recent visit, both countries inked eight major MoUs covering various areas such as vigilance, financial regulation, and desalination technology. Additionally, agreements spanning IT, petrochemicals, pharmaceuticals, clean energy technology, manufacturing, and defense were also reached. An essential development was the proposal of the India-Middle East-European Corridor (IMEC), aiming to establish port-railroad connectivity between India, Gulf countries, and the European Union, challenging China’s Belt and Road Initiative.
India-Saudi Arabia Strategic Partnership Council
During the visit, the Crown Prince and the Indian Prime Minister co-chaired the inaugural meeting of the India-Saudi Arabia Strategic Partnership Council. This signifies the intent to deepen the relationship. Saudi Arabia expressed its intention to invest another $50 billion and set up a Sovereign Wealth Fund office in Gujarat International Fin Tech-City. Discussions also revolved around trading in local currencies and a free trade agreement with the Gulf Cooperation Council.
India-Saudi Arabia Relations: A Historical Perspective
India and Saudi Arabia established diplomatic relations in 1947. Notable milestones include the Delhi Declaration in 2006 and the Riyadh Declaration in 2010, which elevated their ties to a strategic partnership. In 2016, Prime Minister Modi received the King Abdulaziz Sash, the highest civilian honor in Saudi Arabia, highlighting the importance of their relationship.
Economic Ties and Energy Cooperation
Economically, India is Saudi Arabia’s second-largest trade partner, with bilateral trade valued at $52.76 billion in FY 2022-23, a significant growth. India also imports a substantial amount of crude oil and petroleum products from Saudi Arabia, contributing to its energy security.
Defense Partnership and Indian Diaspora
The defense partnership between the two nations has witnessed substantial growth, with naval cooperation and joint exercises. Furthermore, the Indian diaspora in Saudi Arabia, numbering over 2.4 million, plays a crucial role in bridging the cultural and economic gap between the two countries.
Significance of the Developments
The proposed India-Middle East-European Economic Corridor holds the potential to reshape global supply chains, deepening India’s engagement with the Arabian Peninsula. Saudi Arabia’s possible permanent membership in BRICS can be a game-changer for its vision of a post-oil economy. Saudi investments in India can also enhance India’s energy security.
Challenges Ahead
Despite the positive developments, challenges remain. The core element of their relationship continues to revolve around energy, particularly Saudi Arabia’s export of crude oil. Additionally, Saudi Arabia’s aid to Pakistan, while engaging with India, raises concerns. The role of China in the region and its increasing influence can indirectly impact India and Pakistan’s dynamics.
Why In News
India-Saudi Arabia Relations: Opportunities and Challenges in the Wake of Crown Prince Muhammad bin Salman’s State Visit and the G20 Summit in New Delhi
MCQs about India-Saudi Arabia Relations
-
What was the primary purpose of Crown Prince Muhammad bin Salman’s recent state visit to India?
A) To sign a comprehensive defense agreement.
B) To participate in the G20 Summit.
C) To discuss Saudi Arabia’s trade relations with India.
D) To establish a new economic corridor in India.
-
Which of the following agreements aims to create port-railroad connectivity between India, the Gulf countries, and the European Union?
A) Clean Energy Agreement
B) India-Saudi Arabia Strategic Partnership Council
C) India-Middle East-European Corridor (IMEC)
D) Bilateral Trade Agreement
-
What is the significance of Saudi Arabia’s possible permanent membership in BRICS, as mentioned in the essay?
A) It will strengthen Saudi Arabia’s energy security.
B) It will boost India’s energy exports to Saudi Arabia.
C) It aligns with Saudi Arabia’s vision of a post-oil economy.
D) It will deepen the India-China economic partnership.
-
What is the major challenge discussed in the essay regarding India-Saudi Arabia relations?
A) India’s dependence on Saudi oil.
B) Competition with China in the region.
C) Lack of economic cooperation.
D) Saudi Arabia’s support for Pakistan despite ties with India.
Boost up your confidence by appearing our Weekly Current Affairs Multiple Choice Questions
