INTRODUCTION :
Bilateral ties between the two countries had existed for much longer, pre-dating colonial times ,when trade between the two nations was of monumental importance , and Arabia held a monopoly over spice trade with India. Later, in India’s post-independence era, the two nations put in conscious efforts to foster and maintain these relations of trade, security and cooperation which are quite evidently advantageous to both.The complex relationships between India and Saudi Arabia show their long-standing economic and sociocultural linkages. Trade ties between India and Saudi Arabia date back several centuries, making them longtime commercial partners. Today, ongoing engagement and cooperation, including a regular exchange of business delegations, are contributing to the gradual expansion and further strengthening of the bilateral economic connections. In addition to being a significant trading partner, India views the Kingdom as a key supporter of its energy security and a crucial economic partner for projects including investments, joint ventures, and the transfer of technology.
WHY IN NEWS :
To attend the Ministerial Meeting of the India-Saudi Arabia Strategic Partnership Council, the Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles recently travelled to Saudi Arabia.
Trade:
We import around 20% of the crude oil we need, making Saudi Arabia our fourth-largest trading partner in the world (after China, the United States, and the United Arab Emirates). According to data supplied by the Directorate General of Foreign Commerce, the bilateral trade between India and Saudi Arabia fell to USD 26.71 billion in 2015–16, a 31.98% reduction from USD 39.27 billion the previous year. Low commodity and gasoline prices as well as decreased worldwide demand may be mostly to blame for the reduction. Our exports to Saudi Arabia totaled USD 6.40 billion during this time period, representing a decrease of 8.61% over the previous year (USD 28.11 billion) while our imports from Saudi Arabia reached USD 20.31 billion.Saudi Arabia is the eighth-largest export market for India and receives more than 2.46% of the country’s total exports. On the other side, 5.38% of India’s total imports come from Saudi Arabia. India is Saudi Arabia’s fifth-largest export market, receiving 8.87% of the country’s total exports, according to figures from 2014. India is the source of about 3.60% of Saudi Arabia’s overall imports and is ranked 7th in terms of its imports.
India-Saudi Arabia Cultural relations :
The introduction of formal Yoga standards and programmes in the Kingdom was made possible by the signing of an MoU on Yoga Cooperation in 2021 between the Saudi Ministry of Sports and India’s Ministry of AYUSH. This was the first Gulf country to implement such standards.Approximately 2.2 million strong Indian community is the largest expatriate community in the Kingdom.In 2019, it was announced that India’s Hajj quota would be increased by 24,975 in 2019, enabling 2,00,000 Indians to perform Hajj in August 2019.India has also digitized the Hajj process by providing the Hajj mobile app, health facility – e-MASIHA, e-luggage pre-tagging, and linking the HGOs (Hajj Group Organizers) with the digital system, which has simplified the procedures for pilgrims.
INDIA-SAUDI ARABIA STRATEGIC COUNCIL:
The strategic Partnership Council was instituted in October , 2019 during the visit of the Prime Minister of India to the Kingdom of Saudi Arabia. It has two main pillars: Political,Security,Social and Cultural Committee, Committee on economy and Investments. India is the fourth country with which Saudi Arabia has formed such a strategic partnership ,after the UK, France and China.
NAVAL EXERCISES :
In 2021, India and Saudi Arabia started their first ever Naval joint exercise called the AL-Mohed-Al-Hindi exercise. India can utilize the friendly relations with Saudi Arabia by convincing the kingdom to exercise its influence over Pakistan in controlling the Taliban in Afganistan. A joint collaborative effort of both economies will transform the southwest Asia sub region.
Conclusion:
The introduction of formal Yoga standards and programmes in the Kingdom was made possible by the signing of an MoU on Yoga Cooperation in 2021 between the Saudi Ministry of Sports and India’s Ministry of AYUSH. This was the first Gulf country to implement such standards.Southwest Asia will change as a result of both economies working together.India now has a USD 25.25 billion trade deficit with Saudi Arabia. India should put greater effort into fostering exports across a range of industries. It would allow us to develop positive trade partnerships while preserving the kingdom’s trade balance.
