India and Saudi Arabia have reaffirmed their intention to expedite negotiations for a Bilateral Investment Treaty, underscoring the growing economic cooperation between the two countries. The announcement came during Prime Minister Narendra Modi’s State Visit to the Kingdom of Saudi Arabia on April 22, at the invitation of Crown Prince and Prime Minister Mohammed bin Salman.
This visit marked Prime Minister Modi’s third trip to Saudi Arabia and followed the Crown Prince’s visit to India in September 2023 for the G20 Summit and the inaugural meeting of the India-Saudi Arabia Strategic Partnership Council (SPC). During the latest visit, both leaders co-chaired the second meeting of the SPC, where they reviewed the progress made since the council’s launch.
The discussions covered a wide spectrum of bilateral relations, including defense, security, trade, energy, health, education, technology, and cultural cooperation. A key outcome of the meeting was the mutual desire to swiftly finalize a Bilateral Investment Treaty to facilitate increased investment flows between the two nations.
Both leaders welcomed the momentum gained through the High-Level Task Force (HLTF), established in 2024, which has played a pivotal role in enhancing cooperation in areas such as taxation, infrastructure, petrochemicals, digital infrastructure, and healthcare. The HLTF also reached understandings on collaborative projects, including plans to establish two refineries.
India lauded the launch of an India Desk at the Public Investment Fund (PIF), aimed at facilitating Saudi investments in India. Both sides acknowledged the contributions of the Saudi-India Investment Forum, held in New Delhi in 2023, and emphasized the importance of public-private partnerships in advancing bilateral economic interests.
Energy cooperation was another focal point, with both countries agreeing to work together to ensure the stability of global oil markets and expand collaboration across sectors such as crude oil supply, petrochemicals, and renewables. A joint study on electrical interconnection and collaboration in clean and green hydrogen, energy storage, and energy efficiency were among the areas discussed.
On the climate front, India expressed support for Saudi initiatives including the Saudi Green Initiative and Middle East Green Initiative. In return, Saudi Arabia appreciated India’s leadership in global climate action, including efforts like the International Solar Alliance and the Mission Lifestyle for Environment.
In addition to economic ties, both countries acknowledged the growing depth of their defense relationship. They highlighted the creation of a Ministerial Committee on Defence Cooperation and ongoing joint military exercises and training exchanges. The two leaders also emphasized their shared commitment to counter-terrorism and condemned the terror attack in Pahalgam, Jammu and Kashmir, on April 22.
Further cooperation was agreed upon in the fields of cybersecurity, border security, and efforts to combat transnational crime. Health cooperation was enhanced with the signing of new MoUs, including one on antimicrobial resistance and another extending the partnership on medical product regulation for five more years.
The two sides also signed agreements in the areas of space cooperation, postal services, and anti-doping. They acknowledged growing collaboration in education, technology, and the cultural sector, including initiatives to promote literature, performing arts, tourism, and sports.
Both sides reiterated their support for the India-Middle East-Europe Economic Corridor and committed to enhancing connectivity through infrastructure, port linkages, and energy interconnectivity. They also agreed to deepen coordination at international forums such as the G20, IMF, and World Bank.
India stands as the second-largest trading partner of Saudi Arabia, while the Kingdom ranks as India’s fifth-largest. In the financial year 2023-24, bilateral trade between the two nations reached USD 42.98 billion, with Indian exports accounting for USD 11.56 billion and imports from Saudi Arabia totaling USD 31.42 billion.
