Source: The post is based on the article “Not Just Oil- New momentum in ties between India and Saudi Arabia could be a game changer” published in “Indian express” on 25th September 2023.
Syllabus: GS2- International relation- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
News: The article discusses growing friendly relations between India and Saudi Arabia. It mentions a recent visit by the Saudi Crown Prince to India, leading to many agreements between the two countries. Saudi Arabia is investing in India’s energy and technology sectors. This improved relationship benefits both nations.
What are the new developments in India-Saudi relations?
Enhanced Bilateral Ties: The Saudi Crown Prince, Muhammad bin Salman, recently visited India, marking his second state visit in four years, highlighting strengthened relations.
Economic Collaboration: The nations have seen trade soar to $52.75 billion in 2022-23, with Saudi Arabia investing $50 billion in energy projects in India, including a Maharashtra refinery.
Strategic Initiatives: India and Saudi Arabia have proposed the IMEC (India-Middle East-European Corridor) to rival China’s Belt-Road-Initiative, aiming to enhance port-railroad connectivity between India, the Gulf countries, and the European Union.
Agreements Concluded: Eight major MoUs were signed in diverse areas like finance, technology, and desalination during the bilateral meet.
Investment in Technology: Saudi Arabia is diversifying its investments, pledging another $50 billion, and plans to open a Saudi Sovereign Wealth Fund office in Gujarat International Fin-Tech City.
How does this relationship benefit both countries?
Benefits to India:
Stable Trade Partner: With trade at $52.75 billion in 2022-23, Saudi Arabia is a significant partner for India.
Enhanced Energy Security: Saudi Arabia has been a reliable source of crude oil for India, addressing its energy needs.
Foreign Capital Influx: Saudi Arabia’s commitment to investing $50 billion in energy projects and another $50 billion in different sectors bolsters India’s economy.
Benefits to Saudi Arabia:
Economic Diversification: Collaborating with India supports Saudi Arabia’s 2030 vision to develop a post-oil economy.
Enhanced Global Reach: The proposed IMEC project and BRICS induction would increase Saudi Arabia’s global influence and connectivity.
Access to Skilled Workforce: Saudi Arabia values the role of Indian expatriates in its development.
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