India Saudi Arabia Trade

Economic Relations and Investments

• Saudi Arabia is the 19th largest investor in India with an investment value reaching US$ 3.22 billion (April 2000- March 2024). Major Saudi investment groups include ZAMIL, ARAMCO, SABIC, E-holidays, and Al Batterjee Group. In addition to this, Soft Bank’s ‘Vision Fund’ has invested in Indian startups such as Delhivery, FirstCry, Grofers, Ola, OYO, Paytm, and PolicyBazaar. On the other hand, major Indian companies and corporate groups such as TCS, L&T, TCIL, TATA, Wipro, Shapoorji & Pallonji, etc. are keeping a strong foot in Saudi Arabia.
• Union Minister of Commerce and Industry, Mr. Piyush Goyal, concluded a successful visit to Saudi Arabia, participating in the 8th Future Investment Initiative. He emphasized the importance of international partnerships and urged global investors to explore opportunities in India's high-growth sectors, including AI and renewable energy. Co-chairing the 2nd Ministerial Meeting of the India-Saudi Strategic Partnership Council, he reviewed progress in key areas like agriculture, energy, and technology. Engaging with Saudi ministers, he fostered collaborative initiatives, resulting in actionable agreements focused on enhancing trade, investment, energy transition, and digital transformation to accelerate economic growth between the two nations.
   
• Saudi Arabia plays an important role in the import, energy security, and strategic oil reserves program of the second-largest economy in Asia. Riyadh considers New Delhi to be a basic and key buyer of oil and has many plans in the energy sector in coordination with India.
• Riyadh has also paid more attention to India’s potential with economic reform programs and oil economy diversification, asset diversification, “Vision 2030“, and turning Aramco into “the world’s largest sovereign wealth fund”. India’s position in the vision of 2030 is prominent.
• It is noteworthy that the bilateral trade in the fiscal year 2022-23 stood at US$ 52.76 billion, and the kingdom alone accounts for 18% of India’s energy import, which reflects the significance of the country from the standpoint of New Delhi’s energy and economic security calculus.
• Major proposed investments include the US$ 44 billion ‘West Coast Refinery & Petrochemicals Project’ in Maharashtra, which is being jointly built by Saudi Aramco, Abu Dhabi National Oil Company, and an Indian consortium.
• In January 2024, India and Saudi Arabia sign the Bilateral Haj Agreement 2024, allocating a total quota of 1,75,025 pilgrims. The agreement reserves 1,40,020 seats for the Haj Committee, benefiting first-time pilgrims, while 35,005 seats are designated for Haj Group Operators.
• India and Saudi Arabia, during bilateral discussions, decide to boost investments in each other's new and renewable energy sectors. The Union Minister for Power and New and Renewable Energy Mr. R. K. Singh encourages Saudi investors to explore opportunities in solar, wind, and green hydrogen in India.
• India and Saudi Arabia sign a Memorandum of Understanding (MoU) in Electrical Interconnections, Green/Clean Hydrogen, and Supply Chains. The agreement focuses on cooperation in electricity exchange, co-development of projects, green hydrogen production, and resilient supply chains for renewable energy materials.