AIR- Strengthening Bilateral Relationship between India and Saudi Arabia | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Why Saudi Arabia is important for India

• India places great importance on its relationship with Saudi Arabia, primarily due to the presence of the largest expatriate community, numbering around 2 million. 
• This community is esteemed for its discipline, law-abiding nature, and peaceful demeanor. Additionally, Saudi Arabia stands as a crucial and dependable source for India's energy needs, contributing significantly to the country's crude oil imports at 18%. Bilateral trade between India and Saudi Arabia has flourished, reaching $27.48 billion, making Saudi Arabia India's fourth-largest trading partner.
• Furthermore, Saudi Arabia has committed substantial investments, approximately $100 billion, in various sectors such as energy, refining, petrochemicals, infrastructure, agriculture, minerals, and mining. 
• The collaboration extends to major projects, with Saudi Aramco actively participating in a significant refinery and petrochemical venture on India's west coast. 
• The bilateral cooperation encompasses diverse areas, including defense, security, trade, culture, education, and people-to-people contacts.
• During the Crown Prince's visit to New Delhi in February 2019, he pledged over $100 billion in priority sectors for India, emphasizing the strategic economic partnership between the two nations.

Why India is important for Saudi Arabia?

• Saudi Arabia acknowledges the substantial contributions made by the Indian community to its development, with around 70,000 Indians returning to India during an amnesty period announced by Saudi authorities. 
• Pragmatism guides Saudi Arabia's approach as it undergoes economic reforms, relying on India for both economic and technological support. 
• Given its limited experience in countering threats from groups like Houthi militias, Saudi Arabia seeks India's expertise, fostering joint military training programs.

Current Scenario and its analysis:

• Both India and Saudi Arabia demonstrate a strong political will to elevate their relations to new heights. 
• The current scenario differs from the Cold War era, where ties were significantly influenced by the Pakistani factor. 
• Recent indications suggest Saudi Arabia is less inclined to interfere in India's internal affairs, fostering politico-economic ties and progressing cooperation in the security realm.

Challenges for India:

• Navigating the complex and multidimensional politics of the Middle East presents challenges for India, particularly concerning the Saudi Arabia-Turkey rivalry and the Saudi Arabia-Iran rivalry. 
• Striking a balance between ties with Iran, Saudi Arabia, and the United States remains a challenge for India.

Way Forward:

• To strengthen bilateral ties, both countries should enhance cooperation in maritime security, potentially through joint naval exercises. 
• Exploring engagement in the space domain, such as collaboration with the Saudi Space Agency, could open new avenues. 
• Additionally, the next stage of cooperation could involve synergy in Indian infrastructure, agriculture, start-ups, skilling, and IT. 
• Shifting labor-intensive establishments from Saudi Arabia to India aligns with national priorities, reducing the kingdom's expatriate population and supporting India's 'Make in India' initiative.