News Highlight
The first ministerial meeting of the Committee on Political, Security, Social and Cultural Cooperation (PSSC) was held between India and Saudi Arabia.
PSSC was established under the framework of the India-Saudi Arabia Strategic Partnership Council.
India-Saudi Bilateral Relations
Background
- India and Saudi Arabia enjoy cordial and friendly relations reflecting the centuries-old economic and socio-cultural ties.
- The establishment of diplomatic relations in 1947 was followed by high-level visits from both sides.
- The historic visit of King Abdullah to India in January 2006 was a watershed moment that resulted in the signing of the Delhi Declaration.
- Delhi Declaration imparted fresh momentum to the bilateral relationship.
- The ‘Riyadh Declaration’, signed in 2010, elevated the bilateral relationship to a Strategic Partnership.
Cultural Relations
- India participated as the Guest of Honour at the 32nd edition of the prestigious Saudi National Festival of Heritage and Culture – Janadriyah in February 2018.
- The year 2021-22 commemorates 75 years of India’s independence as ‘Azadi ka Amrit Mahotsav’. These celebrations also coincide with 75 years of diplomatic relations between India and Saudi Arabia.
- The annual Hajj pilgrimage is another important component of Indo-Saudi bilateral relations.
- In February 2019, it was announced that India’s Hajj quota would be increased, enabling 2,00,000 Indians to perform Hajj in August 2019.
Indian Diaspora
- The approximately 2.2 million strong Indian community is the largest expatriate community.
- In October 2019, the two sides announced that India’s e-Migrate system would be integrated with the Kingdom’s e-Thawtheeq system to streamline the migration process for workers.
Strategic Relations
- Prime Minister visited Riyadh in October 2019, during which the Strategic Partnership Council (SPC) Agreement was signed, establishing a high-level council to steer the Indo-Saudi relationship.
- The Strategic Partnership Council (SPC) has two sub-committees –
- Committee on Political, Security, Social and Cultural Cooperation
- Committee on Economy and Investments.
- The Strategic Partnership Council (SPC) has two sub-committees –
Economic Relation
- Trade
- Saudi Arabia is India’s fourth largest trade partner (after the USA, China and UAE)
- Saudi Arabia is a major source of energy as India imports around 18% of its crude oil requirement and ~22 % of its LPG requirement from the Kingdom.
- In FY 2021-22, bilateral trade was valued at the US $42.8billion.
- In FY 2021-22, India’s trade with Saudi Arabia accounted for 4.14% of India’s total trade.
- An MoU was also signed to roll out the RuPay card in the Kingdom, making Saudi Arabia the third country in the Persian Gulf after the UAE and Bahrain to introduce India’s digital payment system.
- Investments
- Indian Investments in Saudi Arabia
- Indian investments in the Kingdom of Saudi Arabia have crossed USD 2 Billion.
- Saudi Investments in India
- Saudi Arabia is the 17th largest investor in India, with investments amounting to $3.13 billion (March 2021).
- Ministry of Finance signed an MoU with the Saudi Ministry of Energy, Industry and Mineral Resources in February 2019 to invest in India’s National Investment and Infrastructure Fund Limited (NIIF).
- Indian Investments in Saudi Arabia
Commercial Relation
- Major commodities of export from India to Saudi Arabia include engineering goods, rice, petroleum products, chemicals, textiles, food products, and ceramic tiles.
- Whereas major commodities of import for India from Saudi Arabia are crude oil, LPG, fertilisers, chemicals, plastic and products thereof etc.
Defence Relation
- Naval Exercise: India and Saudi Arabia started their first-ever Naval joint exercise called the Al-Mohed Al-Hindi Exercise.
Collaboration during COVID-19
- Throughout the pandemic, both nations have been sharing national experiences and supporting each other to ensure a continued flow of food, medicines and other essential items.
- In February and March 2021, in two separate consignments, India provided 4.5 million COVISHIELD vaccines to the Kingdom, whereas, during the second wave, the latter provided India with COVID-relief material, particularly liquid oxygen.
Pic Courtesy: Indian Express
Content Source: Indian Express