Maarg Manthan · Topic 3.4

India-Saudi Arabia Relations: Strategic Partnership Council

International Relations & Places in News › India and Its Extended Neighbourhood · Topic 3.4

India and Saudi Arabia have a Strategic Partnership Agreement of 2010, raised in 2019 to the Strategic Partnership Council, which has ministerial committees on political, economic, defence and cultural cooperation. The second leaders' meeting was held in Jeddah on 22 April 2025. Saudi Arabia is among India's top crude oil suppliers, and about 2.6 million Indians live there. Energy, investment, defence and the Haj are the main themes.

5 min read · UPSC Prelims · International Relations · India and Its Extended Neighbourhood

At a Glance

Council Strategic Partnership Council (2019)
Latest leaders’ meeting Jeddah, 22 April 2025
Oil Third largest crude supplier in 2023-24; 14.3% of imports
FDI Cumulative 3.22 billion dollars, 2000-2024
Defence EX-SADA TANSEEQ (army) and Al Mohed Al Hindi (navy)
Exam link UPSC Prelims, International Relations: India and Its Extended Neighbourhood

Where Does It Fit?

This is the fourth topic of the macro on India and its extended neighbourhood. Saudi Arabia is the largest economy of the Gulf, the custodian of Islam’s holiest sites and a major energy partner of India. Previous topic: India-Gulf Cooperation Council (GCC) Countries: Energy Security, Diaspora Remittances. Next topic: India-UAE Relations: Comprehensive Economic Partnership Agreement (CEPA).

What Is the Strategic Partnership Council?

Origin: the Strategic Partnership Agreement was signed in 2010, during the visit of the Saudi King, as a follow-up to the Riyadh Declaration. In 2019 India and Saudi Arabia set up the Strategic Partnership Council during Prime Minister Modi’s visit.
Leaders’ meetings: the second leaders’ meeting was co-chaired by Prime Minister Modi and Crown Prince Mohammed bin Salman in Jeddah on 22 April 2025.
Committees: the 2025 meeting created two new ministerial committees, on defence cooperation and on tourism and cultural cooperation. The council now has four ministerial committees, one of which covers economy, energy, investment and technology.
Vision 2030: Saudi Arabia’s economic diversification plan, Vision 2030, matches India’s strengths in information technology, health, food and manufacturing.
Digital and technology links: Indian firms and institutions work with Saudi counterparts in digital payments, space, health technology and renewable energy, and Saudi funds have looked at Indian start-ups and infrastructure.
Corridor: the proposed India-Middle East-Europe Economic Corridor would run through Saudi territory, and it gives the partnership a connectivity dimension beyond oil.

What Are the Main Areas of Cooperation?

Area	Details
Energy	Saudi Arabia was India’s third largest source of crude oil in 2023-24, with 14.3 per cent of imports. The two sides agreed to work on building two oil refineries in India
Investment	The Kingdom pledged around 100 billion dollars of investment in India during a 2019 visit, but cumulative FDI equity inflows from 2000 to 2024 were only 3.22 billion dollars, making Saudi Arabia 20th among sources. Both sides vowed to conclude a bilateral investment treaty early
Defence	The first India-Saudi joint land exercise, EX-SADA TANSEEQ, took place in India in 2024, and the naval exercise Al Mohed Al Hindi has been held. The new defence committee covers training, exercises and defence industry collaboration
People	About 2.6 million Indians work in Saudi Arabia, and India is one of the largest sources of Haj pilgrims, with an annual quota under a bilateral agreement
Trade	Saudi Arabia is among India’s top trading partners, and India exports food, engineering goods and petroleum products
Multilateral	Saudi Arabia is a member of the G20 and OPEC, and part of the India-Middle East-Europe Economic Corridor announced in 2023

What Are the Challenges?

Investment gap: the large pledges have not led to equal inflows, because of regulatory issues, project readiness and global conditions.
Oil dependence: India’s reliance on imported oil is high, and prices and supply are affected by OPEC decisions and regional tensions, as in OPEC and OPEC+.
Labour issues: wage protection, working conditions and the legal safety of Indian workers need constant attention.
Pakistan factor: Saudi Arabia has close security ties with Pakistan, which India watches.
Regional security: the conflict in the wider region, including involving Iran, can disrupt shipping and projects.

As an analytical point, the partnership is shifting from oil and labour to investment, technology and defence. Its test is turning pledges into projects, such as refineries and the investment treaty, and balancing Saudi ties with the other Gulf states and Iran, while using the new committees on defence and tourism to widen the relationship beyond energy and migrant labour, in a way that also brings benefit to Indian students, businesses and pilgrims, as shown in India-Gulf Cooperation Council (GCC) Countries: Energy Security, Diaspora Remittances.

Why Is This Topic Important?

Mechanism Council committees asked
Energy Oil share and refineries
People Haj and workers

What Came Next?

The next topic covers the United Arab Emirates, India’s closest Gulf partner. Next topic: India-UAE Relations: Comprehensive Economic Partnership Agreement (CEPA).

Key People and Terms

Strategic Partnership Council Leaders-level cooperation framework
Vision 2030 Saudi economic reform plan
BIT Bilateral investment treaty
Haj quota Yearly pilgrim allotment
EX-SADA TANSEEQ India-Saudi army exercise
Riyadh Declaration 2010 India-Saudi declaration

Exam Corner

Points to Remember

Strategic Partnership Agreement: 2010; Council: 2019.
Second leaders’ meeting: Jeddah, 22 April 2025.
Saudi share of India’s crude imports: 14.3% (2023-24).
About 2.6 million Indians in Saudi Arabia.
Army exercise: EX-SADA TANSEEQ; navy: Al Mohed Al Hindi.

Do Not Confuse With

Strategic Partnership Agreement and Council 2010 agreement versus 2019 body
Saudi Arabia and the UAE Different Gulf partners with separate agreements
Haj and Umrah Annual pilgrimage versus pilgrimage at any time

Memory Hook

Ten made the pact, nineteen the council; Jeddah in twenty-five added defence and tourism.

Mains Angle

Questions ask about the shift from oil to wider cooperation. These points add depth.

Past Oil and labour
Now Investment and defence
Gap Pledges and flows

A Question You May Face

An original practice question, not a past paper question.

“Examine how India-Saudi Arabia relations have changed from a buyer-seller link to a strategic partnership.”

How to Answer

Mechanism Council and committees.
Areas Energy, investment, defence.
Gaps FDI and jobs.
Way forward Treaty and projects.

GS Relevance

Prelims: Strategic Partnership Council, Haj quota, joint exercises, Vision 2030, Saudi refinery plans. GS Paper 2: India and West Asia; Indian diaspora; energy diplomacy.

Frequently Asked Questions

What is the India-Saudi Arabia Strategic Partnership Council?

The Strategic Partnership Council is a leaders-level framework set up in 2019 to guide India-Saudi cooperation. Its second leaders' meeting in Jeddah on 22 April 2025 added committees on defence and on tourism and culture, to the existing political, economic and energy committees.

How important is Saudi Arabia for India's oil supply?

Saudi Arabia was India's third largest source of crude oil in 2023-24, accounting for 14.3 per cent of India's imports. The two countries have also agreed to work towards building two oil refineries in India with Saudi participation.

What defence cooperation exists between India and Saudi Arabia?

India and Saudi Arabia held their first joint land exercise, EX-SADA TANSEEQ, in India in 2024 and have conducted a naval exercise called Al Mohed Al Hindi. A ministerial committee on defence was added in April 2025 to deepen training and industry cooperation.

How much has Saudi Arabia invested in India?

Saudi Arabia pledged about 100 billion US dollars of investment in India during a 2019 visit, but cumulative FDI equity inflows from 2000 to 2024 were 3.22 billion dollars, ranking it 20th. Both sides have said they will conclude a bilateral investment treaty early.

Why is Saudi Arabia important to Indian Muslims?

Saudi Arabia hosts Mecca and Medina, and the Haj pilgrimage is organised under a bilateral agreement that fixes India's annual quota of pilgrims. Large numbers of Indians also work in the Kingdom, so relations affect millions of families.

PYQ Practice — Statement Analysis

1 The India-Saudi Strategic Partnership Council was set up in 2019.

True

The second leaders' meeting was in 2025.

2 EX-SADA TANSEEQ is an India-Saudi naval exercise.

False

It is an army exercise; the naval exercise is Al Mohed Al Hindi.

3 Saudi Arabia was among India's top crude oil suppliers in 2023-24.