News Highlight
The Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles visited Saudi Arabia to attend the Ministerial meeting of the India-Saudi Arabia Strategic Partnership Council.
Key Takeaway
- The Strategic Partnership Council was instituted in 2019 during the visit of the Prime Minister of India to the Kingdom of Saudi Arabia and had two main pillars.
- Political, Security, Social, and Cultural Committee.
- The Committee on the Economy and Investments.
India-Saudi Bilateral Relations
- Background:
- India and Saudi Arabia enjoy cordial and friendly relations, reflecting the centuries-old economic and socio-cultural ties.Â
- High-level visits from both sides followed the establishment of diplomatic relations in 1947.
- The historic visit of King Abdullah to India in 2006 was a watershed moment that resulted in the signing of the Delhi Declaration.
- The 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.
- 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 critical 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 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:
- The Prime Minister visited Riyadh in 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 the Economy and Investments.Â
- Bilateral trade:
- Saudi Arabia is India’s fourth largest trade partner (after the USA, China, and UAE).Â
- Saudi Arabia is a major energy source, as India imports around 18% of its crude oil requirements and 22 % of its LPG requirements from the Kingdom.Â
- 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.
- Investment:
- Indian investments in the Kingdom of Saudi Arabia have crossed USD 2 billion.
- Saudi Arabia is the 17th largest investor in India, with investments amounting to $3.13 billion (March 2021).Â
- The Ministry of Finance signed an MoU with the Saudi Ministry of Energy, Industry, and Mineral Resources in 2019 to invest in India’s National Investment and Infrastructure Fund Limited (NIIF).
- 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 shared national experiences and supported each other to ensure a continued flow of food, medicine, and other essential items.Â
- 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.Â
Pic Courtesy: South Asian Voices
Content Source: PIB