India and Saudi Arabia have begun to increasingly look like natural strategic and economic partners, with many growing convergences. The leadership in both countries in recent years appears determined to establish a solid partnership for mutual gains.
Recently, India and Saudi Arabia elevated their relationship:
- Establishment of a Strategic Partnership Council (SPC). India to become the fourth country to sign such an agreement with Saudi Arabia. The SPC will have two parallel tracks:
- Political, Security, Social and Cultural Committee
- Committee on Economy and Investments
- Saudi Arabia supported India’s decision to revoke the special status of Jammu and Kashmir.
Delhi Declaration 2006 laid foundation of strategic partnership.
- The two Governments would closely and actively cooperate to fight the menace of terrorism and other transnational crimes like money-laundering, drugs and arms smuggling in a sustained and comprehensive manner.
- Both countries would develop a strategic energy partnership based on complementarity and interdependence.
- The two countries would work for closer cooperation in the field of technology, in particular in the field of information technology, agriculture, biotechnology, etc.
- The two Governments would encourage and support entrepreneurs in both countries to harness each other’s strengths.
Importance of Saudi Arabia
- Energy Security: Saudi Arabia is India’s second largest supplier of crude oil (~18% of the total import). India also sources ~32% of its LPG requirements from Saudi Arabia.
- Recently, Saudi Arabian oil major ARAMCO has decided to partner in Ratnagiri Refinery and Petro-Chemical Project in Maharashtra, a Joint Venture of US$ 44 billion billed as the world’s biggest.
- Bilateral Trade & Investment
- Total bilateral trade is around $34 billion, in 2018-19. India is 4th largest trading partner of Saudi Arabia.
- Saudi Arabia had expressed intent to invest about $100 billion in India.
- Saudi Arabia identified India as one of the Kingdom’s 8 Strategic Partner Countries under ‘Vision 2030’ to reduce Saudi Arabia’s dependence on oil and diversify its economy.
- Socio-cultural relations
- Of the 11 million Indians working in West Asia, 2.6 million are in Saudi Arabia.
- Saudi is source of foreign remittances (up to $11 billion annually).
- India has the world’s 3rd largest Muslim population that’s why Saudi [have Islam’s holiest sites Mecca & Medina] becomes important in India’s strategic calculus.
- Strategic and security cooperation
- Riyadh Declaration (2010) has raised the level of partnership to strategic partnership which will help to tackle terrorism and radicalization.
- Both cooperate on ensuring the security and safety of waterways in the Indian Ocean region and the Gulf region.
- Global cooperation
- India and Saudi Arabia been working together within the G20 to reduce inequality and promote sustainable development.
- Both sides cooperate in climate change, green energy and disaster management.
Challenges in India-Saudi Arabia Relations
- Saudi – Pakistan relation: Pakistan is a “historical ally” of the Saudis. Saudi gains from mostly unbridled military and political support from Pakistan.
- Ideological support to terrorism: Saudi money has been accused of funding Wahhabi Islamic groups around the world, which ultimately channel to terrorist groups acting against India.
- Saudi-Iran rivalry: The sectarian rivalry is destabilizing West Asia and influencing West Asian geopolitics. Considering its economic interests in Iran, India needs to walk on a tightrope balancing relations between the two countries.
- Saudi Arabia’s aggressive foreign policy in West Asia (E.g. in Yemen and Syria): It is doing great damage to regional stability, which is India’s most important goal in the region.
- Bilateral Issues: The working conditions for the Indian blue collared laborers in Saudi Arabia, Restrictive visa & hiring policies, stringent labor laws, lack of human rights & absence of minimum wage provision has resulted into many cases of exploitation of Indian workers.
Way Forward
- As Saudi Arabia attempts to shed its conservative image and move towards a more open and moderate economy and society alike, India is being seen as a major collaborator and market.
- The potential areas for next stage of bilateral cooperation could be greater bilateral synergy in Indian infrastructure, agriculture, start-ups, skilling and IT.
- Holding joint naval exercises is important for maritime security cooperation as well as to safeguard international trade via sea routes.
- Space is an important domain where bilateral engagements as Saudi newly established Saudi Space Agency.
- India needs to continue the balancing act in West Asia that allows it to have good relations with Saudi Arabia, Iran and Israel, the three poles of power at loggerheads with each other in the region.
- At the same time, maintaining distance from regional fractures and conflicts would allow India to pursue its economic and geo-strategic aims in the region.
- Formation of the India-Saudi Strategic Partnership Council that will “help India address its expectations and aspirations.” There is strong political will in both India and Saudi Arabia to take relations to new heights.
Conclusion:
The Indo-Abrahamic framework syncs well with Saudi Arabia’s strategic ambitions to leverage its ‘unique strategic location’ to transform into a global hub between Asia, Europe, and Africa in Vision 2030. The kingdom sees itself as being ‘at the heart of the Arab and Islamic worlds.
India presents itself as a solid strategic and economic partner to Saudi Arabia, as Riyadh seeks strategic autonomy and establishes itself as a global middle power.
CHANGING FOREIGN POLICY OF SAUDI – ARABIA
For past many years, Saudi’s foreign policy centred around Iran and it resulted into the proxy conflicts across the region. The rivalry between Saudi Arabia and Iran is rooted in Islamic sectarianism. While Iran is the foremost Shia state in the world, Saudi Arabia is considered to be the religious home of Sunni Islam. This sectarian rivalry has translated into a tussle for regional hegemony and both sides being involved in multiple proxy conflicts against each other in Iraq, Lebanon, Syria and most devastatingly, Yemen.
Saudi’s changing foreign policy:
- It agreed to establish ties with Iran through talks mediated by China.
- Saudi – Omani delegation hold talks with Houthi rebels for a permanent ceasefire.
- It is holding talks with Syria to normalize ties with Assad Regime which may result into re-entry of Syria to Arab League.
- It is also trying to balance its relationships with the US, Russia, and China.
The reason behind the shift:
- Saudi’s past endeavours in West Asia were either unsuccessful or only partially successful.
- In Yemen, Saudi led coalition failed to oust Houthi’s from Sana’a (Yemen’s Capital).
- Saudi Arabia’s “Vision 2030” calls for diversifying the oil-dependent economy by attracting tourism and foreign investment. Regional peace will be crucial to turning Saudi Arabia into the global hub that “Vision 2030” envisions. This has led to Saudi Arabia making concerted efforts to end long-standing conflicts/rivalries with powers across the region.
- As the U.S. shifts its priorities away from West Asia, Saudi Arabia is confronted with a choice to either persist in their unsuccessful efforts to contain Iran in a region or they can work towards establishing a new balance with Iran.
Implications for the region:
- Saudi Arabia’s normalization talks with Syria would help improve the overall relationship between Syria and other Arab capitals.
- If Saudis can reach a settlement with Houthis, it could infuse some stability in the Gulf region.
