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India, Saudi Arabia unveil steps to boost cooperation; PM Modi curtails visit over J&K attack
The meeting between PM Modi and MBS began with a reference to the terror attack in Jammu and Kashmir. Both leaders expressed their condemnation of the incident
India and Saudi Arabia on Tuesday unveiled a range of measures to boost defence cooperation and to bolster investments, including the setting of two oil refineries as joint ventures, even as Prime Minister Narendra Modi curtailed his visit to the kingdom because of a terror attack in Jammu and Kashmir.
Modi and Saudi Crown Prince Mohammed bin Salman, or MBS as he is popularly known, co-chaired the second meeting of the Strategic Partnership Council, the apex body that oversees bilateral cooperation in a range of areas, during their meeting in Jeddah. They also held informal talks at Al Salam Palace, though Modi decided to skip a formal dinner after reports of the terror attack near Pahalgam came in.
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After a meeting of the bilateral High Level Task Force on Investments in Riyadh on Monday addressed several concerns on the Saudi side, including the taxation of investments, the two sides agreed on a range of measures to drive two-way investments. People familiar with the matter said this will pave the way for the Saudi side to go ahead with plans to invest up to $100 billion in India, which were first announced during MBS’s visit to India in 2019.
Modi and MBS welcomed the decision to collaborate on establishing two oil refineries as joint ventures in India, Indian ambassador Suhel Khan told a media briefing. “They also welcomed the progress which has been made in the areas of taxation and the forward-looking agreements made to facilitate investments on both sides,” he said.
The two sides decided to expand the scope of the Strategic Partnership Council by setting up two new ministerial committees under it to oversee cooperation in defence, and tourism and culture. The Council earlier had two ministerial committees to oversee cooperation in political and security matters, and the economy and investments.
The two sides also signed four memorandums of understanding for cooperation in space, health, sports and postal services.
The meeting between Modi and MBS began with a reference to the terror attack in Jammu and Kashmir, and both leaders expressed their condemnation of the incident, Khan said. MBS conveyed his condolences and sympathies and offered any help that Saudi Arabia could provide in this regard.
“The terror attack in Kashmir was discussed and MBS conveyed his condolences. Both the leaders condemned this terror attack,” Khan said. “India and Saudi Arabia have excellent cooperation on issues related to terrorism and we continue to work together on this issue, where both countries believe in a similar vision.”
Total Saudi investments in India, including those of sovereign wealth funds, are worth about $10 billion.
Two-way trade was worth $43.3 billion in 2023-24, with Indian exports increasing during this period by 7.8% to almost $12 billion. Saudi Arabia is India’s fifth-largest trade partner, while India is Saudi Arabia’s second-largest trade partner and plays a key role in the kingdom’s food security, with rice exports alone worth about $1 billion annually.
Energy trade was worth $25.7 billion during 2023-24, and Saudi Arabia was India’s third largest source of both crude oil imports (14.3% of total imports) and liquefied petroleum gas (18% of total imports).
