India-Saudi Arabia Strategic Partnership | Around The World | UPSC | Drishti IAS English

Summary

India and Saudi Arabia are deepening their strategic relationship, extending beyond oil and trade. A recent agreement focuses on workforce development, enhancing opportunities for Indian workers in Saudi Arabia, and a significant $100 billion investment from Saudi Arabia aims to boost cooperation in sectors like agriculture, fintech, and infrastructure. Both nations have strengthened ties in defense and security, particularly in combating terrorism. Their partnership, formalized through the Strategic Partnership Council, is creating new opportunities for economic growth, regional stability, and cultural exchange, marking a new chapter in their bilateral relations.

Takeaways

• 😀 India and Saudi Arabia's relationship has evolved from trade to include economic, security, and cultural cooperation.
• 😀 Bilateral trade between India and Saudi Arabia reached USD 27.4 billion in 2017-18, with Saudi Arabia primarily exporting oil and India exporting various products.
• 😀 Saudi Arabia announced a USD 100 billion investment in India, aimed at enhancing cooperation in energy, agriculture, fintech, skill development, and infrastructure.
• 😀 India and Saudi Arabia signed a Memorandum of Understanding (MoU) to exchange expertise in workforce development and skill systems.
• 😀 Approximately 2.6 million Indian expatriates work in Saudi Arabia, contributing significantly to both countries' economies.
• 😀 The India-Saudi Arabia Strategic Partnership Council, established in 2019, aims to expedite diplomatic, trade, and cultural exchanges.
• 😀 Both countries are collaborating on defense and security, with agreements to fight terrorism through intelligence sharing and joint training programs.
• 😀 The collaboration between India and Saudi Arabia goes beyond economic interests and focuses on strategic, cultural, and human resource development.
• 😀 India and Saudi Arabia's partnership sets a benchmark for other Asian and Gulf countries, emphasizing mutual growth and regional stability.
• 😀 India and Saudi Arabia's enhanced cooperation will contribute to economic growth, employment opportunities, and regional stability in both countries.

Q & A

What is the significance of the recent agreement between India and Saudi Arabia?

The recent agreement between India and Saudi Arabia focuses on enhancing cooperation in workforce development, skill systems, and social security. This partnership is expected to improve employment opportunities for Indian workers in Saudi Arabia and strengthen their contributions to both economies.

How has India-Saudi Arabia trade evolved in recent years?

India-Saudi Arabia trade has seen significant growth, with bilateral trade reaching USD 27.4 billion in the 2017-18 fiscal year. Saudi Arabia mainly exports oil to India, while India exports a variety of goods to Saudi Arabia. Recently, Saudi Arabia announced a USD 100 billion investment in India, further boosting economic ties.

What is the Strategic Partnership Council between India and Saudi Arabia?

The Strategic Partnership Council, established in October 2019, aims to expedite diplomatic, trade, and cultural decisions between India and Saudi Arabia. The council focuses on strengthening cooperation in defense, security, and energy sectors, and plays a crucial role in enhancing bilateral relations.

How does the agreement between India and Saudi Arabia affect Indian expatriates in Saudi Arabia?

The agreement will offer better opportunities for Indian expatriates working in Saudi Arabia, enhancing their contributions to the Saudi economy. Currently, around 2.6 million Indian expatriates work in Saudi Arabia, playing a significant role in both countries' economies.

What measures are being taken by India and Saudi Arabia to combat terrorism?

India and Saudi Arabia have signed multiple agreements to combat terrorism, including intelligence sharing, joint training programs, and coordinated actions against terrorist organizations. This collaboration aims to enhance the security and stability of both nations and send a unified message against global terrorism.

What impact is the USD 100 billion investment from Saudi Arabia expected to have on India?

The USD 100 billion investment from Saudi Arabia is expected to strengthen economic ties between the two countries and boost employment opportunities in India. The investment will focus on sectors such as energy, agriculture, fintech, skill development, and infrastructure.

What historical trade relationship did India and Saudi Arabia share before the modern era?

Historically, India and Saudi Arabia shared a prosperous trade relationship, particularly in spices, tea, silk, and cotton. Arab merchants would travel to India’s Malabar Coast, fostering strong trade ties until European powers disrupted this exchange.

What recent visa-related developments benefit Indian tourists?

In 2025, Russia is expected to introduce visa-free travel for Indian tourists, simplifying travel and reducing costs. Additionally, Thailand has extended visa-free entry for Indian tourists, allowing them to stay up to 60 days with a possible extension of 30 days, promoting tourism in the region.

How have UK sanctions on Russia impacted international relations?

The UK has imposed extensive sanctions on Russia in response to its aggressive actions, including involvement in the Ukraine War, support for mercenaries in Africa, and incidents like the nerve agent attack in the UK. These sanctions have sparked opposition to Russia across Europe and the international community.

What role does India play in Saudi Arabia's workforce development?

India plays a significant role in Saudi Arabia’s workforce development by providing skilled workers in various sectors. The recent agreement between both nations aims to enhance the quality of the Indian workforce in Saudi Arabia, facilitate knowledge exchange, and improve social security systems for workers.