India and Saudi Arabia Relations
Saudi Arabia occupies a uniquely pivotal place in India’s West Asia policy. It is a leading energy supplier, the custodian of Islam’s holiest sites (Mecca and Medina) — which gives it profound resonance with India’s large Muslim population — home to a ~2.6-million Indian community, and a rising source of investment.
For decades the relationship was hobbled by Riyadh’s tilt towards Pakistan; yet since the 2000s it has been transformed, through the Delhi and Riyadh Declarations and a Strategic Partnership Council, into one of India’s most consequential Gulf partnerships.
This section traces that arc from estrangement to strategic embrace.
Historical Background
Cold-War Oscillations
India and Saudi Arabia established diplomatic ties in 1948, but the Cold War kept them uneasy. Saudi Arabia’s identity as an Islamic state and custodian of the holy sites drew it towards Pakistan, which it backed on Kashmir and in the wars of 1965 and 1971 — even declining to recognise Bangladesh after 1971.
Brief thaws did occur (Prince Faisal and King Saud visited India in the mid-1950s; Nehru visited Riyadh in 1956; Indira Gandhi in 1982), but Saudi Arabia’s pro-West alignment and use of Pan-Islamism to weaken pro-India Egypt kept the relationship cool. India’s response to Pakistan-funded extremism in Kashmir and the 1992 Babri Masjid demolition added further strain into the 1990s.
The Post-9/11 Convergence
The turning point was strategic recalculation after 9/11. The US invasions of Afghanistan and Iraq alarmed Riyadh: with Saddam Hussein (a Sunni counterweight) removed, Saudi Arabia feared unchecked Iranian ambition — anxieties deepened by the rise of a hardline leadership in Tehran.
King Abdullah therefore chose to diversify beyond the US and build new partnerships, including with a rising India.
The Foundational Declarations
- Delhi Declaration (2006): King Abdullah was Chief Guest at India’s Republic Day and the two signed the first comprehensive bilateral document, laying foundations in energy and counter-terrorism.
- Riyadh Declaration (2010): During PM Manmohan Singh’s visit, ties were elevated to a Strategic Partnership, widening cooperation into space and energy.
Timeline at a Glance
| 1948 | Diplomatic ties established; soon strained by Saudi–Pakistan alignment. |
| 1965–71 | Saudi backs Pakistan in wars; declines to recognise Bangladesh. |
| 1982 | Indira Gandhi visits Riyadh amid regional churn (Iran revolution, etc.). |
| 2006 | King Abdullah = Republic Day Chief Guest; Delhi Declaration. |
| 2010 | Riyadh Declaration; ties elevated to Strategic Partnership. |
| 2019 | Strategic Partnership Council established; US$100 bn investment pledge. |
| 2023–25 | MBS co-chairs 1st SPC Leaders’ Meeting (2023); PM’s Jeddah visit (2025). |
Why Saudi Arabia Matters — Key Drivers
| Driver | Significance for India |
| Energy security | A top supplier of crude oil and LPG (around a fifth of India’s crude) — central to India’s energy and cooking-gas needs. |
| Diaspora & remittances | Home to ~2.6 million Indians and a major source of remittances; also manages the annual Haj pilgrimage. |
| Investment | A US$100-billion investment pledge and the sovereign Public Investment Fund (PIF) make Riyadh a key source of long-term capital. |
| Islamic-world weight | Custodian of Mecca and Medina and leader of the OIC — its stance matters for India’s outreach to the Islamic world and on Pakistan. |
| Strategic balancing | A counterweight to Pakistan’s traditional influence and a partner in balancing Iran and regional security. |
| Vision 2030 opportunity | Saudi diversification away from oil opens vast opportunities for Indian technology, manpower and investment. |
Areas of Cooperation
Political and Strategic
The relationship is now institutionally anchored. Building on the Delhi and Riyadh Declarations, the two established the Strategic Partnership Council (SPC) during PM Modi’s 2019 Riyadh visit — making India one of a select few countries with such a mechanism with Saudi Arabia.
Crown Prince Mohammed bin Salman (MBS) visited India in 2019 (announcing the US$100-billion pledge) and again in 2023, when he co-chaired the first SPC Leaders’ Meeting alongside the G20 Summit. PM Modi’s 2025 visit to Jeddah carried the momentum forward.
Energy and Oil Diplomacy
Energy is the historic backbone. Saudi Arabia is among India’s largest crude-oil and LPG suppliers, and the Delhi Declaration first framed the goal of energy security through long-term supply contracts.
Cooperation now extends to strategic petroleum reserves and downstream investment — most notably Saudi Aramco’s interest in the giant west-coast (Ratnagiri) refinery project. Crucially, as Vision 2030 pushes Saudi diversification, both sides are aligning on the clean-energy transition, including green hydrogen and solar (via PIF-backed investments in Indian renewables).
Trade and Investment
- Trade: Bilateral trade is substantial (in the US$40–50 billion range), though import-heavy due to crude oil. India exports cereals, meat, engineering goods, chemicals and pharmaceuticals.
- Investment pledge: Saudi Arabia’s US$100-billion commitment spans energy, refining, petrochemicals, infrastructure, mining and agriculture, steered by a high-level joint task force; the PIF has invested in Indian firms such as ReNew and Reliance ventures.
- Institutional base: A Bilateral Investment Protection Agreement and Double Taxation Avoidance Agreement (2006), plus 500+ Indian firms operating in the Kingdom, underpin commerce.
Defence and Security
- Naval cooperation: The two navies hold Al-Mohed Al-Hindi — the maiden edition in 2021 and a second in 2023 — reflecting shared interests in the Indian Ocean and Red Sea.
- Army cooperation: The armies conducted their first-ever joint exercise, Sada Tanseeq, in Rajasthan in 2024.
- Counter-terrorism: The Delhi Declaration made counter-terrorism a founding pillar, with growing cooperation on intelligence, security and defence production.
Diaspora, Labour and Culture
The ~2.6-million Indian community is a vital human bridge and a major remittance source. India and Saudi Arabia have advanced labour reforms — including standardised contracts for domestic workers, minimum-wage protections and welfare safeguards — through an MoU on labour cooperation.
Saudi Arabia also facilitates India’s large annual Haj pilgrimage, and cultural ties are expanding in step with the social opening under Vision 2030.
Multilateral and Connectivity
Saudi Arabia is a key node in the India–Middle East–Europe Economic Corridor (IMEC), linking India to Europe via the Gulf. Both engage in the G20 and are drawn into the expanded BRICS orbit, giving India and Saudi Arabia widening platforms for coordination.
| Recent Milestones — Quick Recall 2006 / 2010: Delhi Declaration (King Abdullah Chief Guest) and Riyadh Declaration (Strategic Partnership). 2016: PM’s visit; conferred the King Abdulaziz Sash (Saudi Arabia’s highest civilian honour). 2019: Strategic Partnership Council established; MBS’s US$100-billion investment pledge. 2023: MBS co-chairs the 1st SPC Leaders’ Meeting alongside the G20 Summit. 2025: PM’s Jeddah visit; agreements on joint-venture refineries, space, health and more. |
Issues and Challenges
- Incomplete de-hyphenation: Riyadh’s historic closeness to Pakistan persists; joint statements condemn terrorism but stop short of naming Pakistan, and Saudi financial support to Islamabad remains a concern.
- The Iran balance: Tilting too far towards Saudi Arabia risks antagonising Iran; India must maintain a careful Iran–Saudi equilibrium amid the Shia–Sunni divide.
- Energy dependence & trade deficit: Heavy reliance on Saudi crude yields a large trade imbalance and exposure to oil-price and supply shocks.
- Delivery gap: The US$100-billion pledge has been slow to translate into on-the-ground investment, requiring sustained follow-through.
- Labour welfare: Despite reforms, the Kafala sponsorship system and conditions for blue-collar workers remain concerns.
- Regional volatility & China: West Asian instability endangers the diaspora and energy flows, while China’s deepening ties with Riyadh (including its Iran–Saudi mediation) intensify competition.
Way Forward
- Leverage Vision 2030: Position India as a partner of choice for Saudi diversification — supplying technology, skilled manpower, and food security in exchange for investment and energy.
- Deepen de-hyphenation: Patiently press Riyadh to decouple its India ties from Pakistan and take a firmer line on cross-border terrorism.
- Diversify the energy basket: Move from a pure buyer-seller link to joint refining, petrochemicals and green energy, correcting the trade imbalance.
- Institutionalise the SPC: Use the Strategic Partnership Council and its task forces to convert pledges into projects and sustain high-level momentum.
- Expand defence co-production: Build on Al-Mohed Al-Hindi and Sada Tanseeq towards joint manufacturing and maritime-security cooperation.
- Hold the regional balance: Sustain a balanced West Asia policy — engaging Saudi Arabia, Iran, Israel and the Gulf simultaneously — to preserve strategic autonomy.
Conclusion
India–Saudi Arabia relations have travelled from Cold-War estrangement — shaped by Riyadh’s Pakistan tilt — to a multi-dimensional Strategic Partnership spanning energy, investment, defence, technology and the diaspora.
The Delhi and Riyadh Declarations, the Strategic Partnership Council, the US$100-billion investment pledge and the alignment of Vision 2030 with India’s growth story together mark a genuine transformation.
Challenges endure — the Pakistan factor, the Iran balance, and the gap between promise and delivery — but the trajectory is firmly upward. Managed with patience and a balanced regional posture, the partnership can become a cornerstone of India’s Look West policy and its quest for energy security and strategic depth in the Gulf.