Other Bilateral Relations of India

India Supports Cyprus’s Sovereignty

Context: Recently, the Prime Minister of India visited Cyprus. This is the first visit by an Indian PM to Cyprus in over 20 years, and is being seen by many as a strategic signal to Turkey, which has steadily deepened its ties with Pakistan.

Relevance of the Topic: Prelims: Location of Cyprus. Mains: Bilateral Relations: India-Cyprus.

India-Cyprus Ties

India has backed the territorial integrity of Cyprus and called for a resolution of the Cyprus issue under UNSC resolutions and international law.
Cyprus supports Indiaʼs candidature as a permanent member of the expanded UN Security Council.
Cyprus has extended its full support for the India-US Civil Nuclear Agreement, within the Nuclear Supplier Group (NSG) and the International Atomic Energy Agency (IAEA).
On issues like Kashmir, Cyprus has supported India and even showed solidarity after the April 2025 Pahalgam terror attack.
The small but active Indian community in Cyprus strengthens people-to-people ties and enhances India’s soft power presence in the region.

Why is Cyprus important to India?

Strategic location in Mediterranean: Cyprus' geographic location makes it a crucial part of the India-Middle East-Europe Economic Corridor (IMEC), an infrastructure project that India expects multiple benefits from.
- IMEC is supposed to boost trade and connectivity between India and Europe via the Middle East, and Cyprus, in the Mediterranean, has an important role to play.

Upcoming EU Presidency: Cyprus is set to hold the Presidency of the Council of the EU in the first half of 2026. looks to build stronger trade and security ties with Europe, so Cyprus could be a crucial ally.
Counter Turkey: Cyprus has a long-standing and unresolved conflict with Turkey, which occupies Northern Cyprus and recognises it as a separate state.

Location of Cyprus:

Cyprus (Republic of Cyprus) is an island country in the eastern Mediterranean Sea.
Situated in West Asia, it is located southeast of Greece, south of Turkey, west of Syria and Lebanon, northwest of Israel and Palestine, and north of Egypt.

Political Boundaries:

Cyprus is divided into two main political entities.

The Republic of Cyprus controls the southern two-thirds of the island. It is internationally recognised and a member of the European Union (EU).
The northern part is administered by the Turkish Republic of Northern Cyprus (TRNC), which is only recognised by Turkey, with heavy Turkish military and economic backing.
The division of the island dates back to 1974 following a Turkish invasion triggered by a Greek-led coup (aimed at annexing the island to Greece).
The buffer zone is known as the Green Line, and is patrolled by United Nations peacekeepers.

By deepening engagement with Cyprus, a rival of Turkey, India s sending a subtle but firm diplomatic message- If Turkey continues to back Pakistan's anti-India agenda, India would not hesitate to build stronger ties with its adversaries in the region.

Old Continent Rises: India-Europe Relations in a Shifting World Order

Context: India is deepening strategic ties with Europe amidst Trump-era volatility, enhancing prospects for a multipolar world.

Relevance of the Topic: Mains: Significance of Europe for India in a changing world order.

External Affairs Minister S. Jaishankar’s visit to Europe, along with Prime Minister Narendra Modi’s participation in the 2025 G7 summit in Canada, and his upcoming visits to Croatia and Cyprus, highlights India’s renewed emphasis on deepening strategic ties with Europe.

India’s recalibrated approach acknowledges Europe's emerging role as a potential swing state amid the shifting power equations among the US, Russia, and China.

Why does Europe matter to India now?

Europe, once on the periphery of India’s foreign policy, is now emerging as a strategic partner due to three key global shifts:

Trump-era volatility: Trump’s “America First” doctrine and his transactional approach to alliances like NATO and G7 has created uncertainty in the west, pushing India to diversify ties with Europe.
Europe as a Swing State: As the US-China rivalry intensifies, Europe is emerging as a strategic swing state, it gives India a chance to build balanced, independent partnerships in trade, defence, and technology, supporting India’s vision of a multipolar world.
Shared Outlook on Multipolarity: Europe’s push for strategic autonomy aligns with India’s vision of a multipolar, de-hyphenated world order.
Security Realignments: Post-Ukraine war, European nations like Germany, France, and Poland are taking more responsibility for their own security. This opens space for India to collaborate on defence, especially in the Indo-Pacific.

The strategic alignment grounded in shared economic interests, democratic values, and the pursuit of enhanced national security.

How India is deepening ties with Europe?

High Level Engagements: Indian PM’s visit to the G7 Summit presents an opportunity to strengthen links with the broader Western bloc, and engage with the G7 on global issues like climate change, digital governance, and economic resilience. External Affairs Minister’s frequent visits to Europe.
Trade and Tech cooperation:
- The EU-India Trade and Technology Council (TTC), established in 2023, advances cooperation in AI, quantum computing, outer space, and green technologies.
- The once unlikely India-EU Free Trade Agreement is now back on track, reflecting growing mutual interest in deeper economic integration.
Connectivity Initiatives: India-Middle East-Europe Economic Corridor (IMEC) aims to create alternative trade routes and reduce supply chain dependency on China.
Defence Collaboration: Joint military exercises (E.g., with France), co-development talks, and Europe’s €800 billion ReArm 2030 plan offer scope for defence industrial partnerships.

Challenges:

Russia remains a sensitive factor in India-EU relations. India maintains long-standing defence ties with Russia and has refrained from criticising Russia’s war in Ukraine. Europe is at the receiving end of Russia’s ambitions to rearrange the regional order. However, both India and the EU have prioritised pragmatic engagement over ideological arguments.

As the West grapples with internal divisions and the US-China rivalry grows, Europe offers India a reliable partner for balanced cooperation in trade, defence, and technology. Together, both can play a key role in shaping a stable, multipolar world order.

About G-7:

A group of 7 advanced economies- the US, UK, France, Germany, Italy, Canada, Japan that meet annually to discuss global economic and political issues.
India is not a member, and is regularly invited as a guest member.
G7 Summit 2025 is being hosted by Canada.

India not keen to dent Trade ties with Turkey

Context: Amid the calls to curb the trade, India is not keen to dent the trade ties with Turkey, as the country runs a $2.73 billion bilateral goods trade surplus, and any blockade could be counterproductive for India.

Relevance of the Topic: Mains: Bilateral Relations: India-Turkey: Key Trends

India-Turkey Trade Relations

India’s exports to Turkey have steadily grown, especially in industrial sectors. In FY25, the exports to Turkey totalled $5.72 billion, largely driven by engineering exports which comprise over 50%. Notably, the Micro, Small and Medium Enterprises (MSME) sector dominated the segment.
India's Exports to Turkey: Mineral fuels and oil, engineering goods, electrical equipment, auto and its parts, chemicals, pharma, tanning and dyeing items; plastic, rubber; cotton; man-made fibres and filaments, iron and steel.
Imports from Turkey: Marble, mineral oil, fresh apples, gold, vegetables, lime, cement, chemicals, natural or cultured pearls and iron and steel.
India runs a $2.73 billion bilateral goods trade surplus and any blockade could be counterproductive.

India's trade relations with Turkey are facing new challenges after the country voiced "support for Pakistan" and criticised India's strikes on terror camps in Pakistan and Pakistan-occupied Kashmir.

Despite growing tensions and industry pressure, the government is proceeding cautiously on Turkish imports, balancing political messages with economic logic.

India-Mongolia Joint Military Exercise: Nomadic Elephant

Context: The 17th edition of the joint military exercise 'Nomadic Elephant 2025' between India and Mongolia was undertaken at the Special Forces Training Centre in Ulaanbaatar, Mongolia in June 2025.

Relevance of the Topic:Prelims: Key facts: Nomadic Elephant 2025

Nomadic Elephant 2025

This annual exercise is conducted alternately in India and Mongolia.
Objective: To enhance the operational readiness of both armies and contribute to deepening the enduring defence relationship between the two nations.
The training focuses on conducting non-conventional operations in semi-urban and mountainous terrain under a United Nations mandate.
The joint drills included counter-terrorism operations in semi-mountainous terrain, endurance training, reflex shooting, small team tactics, rock craft training, and cyber warfare aspects.
Participating contingents actively exchange best practices in counter-terrorism operations and precision sniping, thereby improving interoperability.

Through these joint drills, Indian and Mongolian forces aim to strengthen their ability to respond effectively to contemporary security challenges.

India and EU conduct joint Naval Exercise in Indian Ocean

Context: India and the European Union Naval Force (EUNAVFOR) held a joint major naval exercise in the Indian Ocean in the first week of June 2025. This exercise was undertaken to boost maritime security cooperation between the two forces.

Relevance of the Topic: Prelims: India-EU Naval Exercise Mains: India-EU Relations: India-EU Security Cooperation

India-EU Naval Exercise:

The exercise involved forces from the EUNAVFOR Operation ATALANTA and the Indian Navy.
Focus: To improve interoperability between the naval forces and advance counter-piracy tactics.
EU and Indian naval ships and air assets (such as maritime patrol aircraft and a helicopter) cooperated on monitoring the situation, gathering intelligence, and planning hostage rescue.
Indian ship included- Indian frigate TRIKAND supported by the respective air assets; Indian Maritime Patrol aircraft.

Significance:

The boosting of Indian-EU cooperation is necessary for a secure, free and open Indian Ocean and Indo-Pacific. The Indian Ocean is a vital maritime corridor for global trade and security. India-EU share commitment to tackle various threats in the region, including piracy, arms smuggling and illegal fishing.

India-EU Security Cooperation:

India-EU held a fourth Maritime Security Dialogue in March 2025. It emphasised the need for cooperation to counter illicit maritime activities and explore new joint maritime initiatives aligned with the objectives of the joint exercise.
India-EU have previously conducted passing exercises (PASSEX) to ensure that navies are able to communicate and cooperate in times of crisis at sea.
India-EU naval cooperation has expanded beyond the Indian Ocean. Joint exercises have taken place in the Gulf of Guinea and Gulf of Aden. The Indian Navy also supports escort missions for World Food Programme vessels coordinated by EUNAVFOR ATALANTA.

President of Paraguay visits India

Context: The President of Paraguay is on a three-day state visit to India in June, 2025. India and Paraguay are looking at new opportunities to strengthen economic partnership in several areas, including digital technology and critical minerals.

Relevance of the topic:

Prelims: Location of Paraguay; Key facts about MERCOSUR.

Mains: India’s economic & strategic partnership prospects in South America.

India-Paraguay Relations

Diplomatic Relations: India-Paraguay bilateral diplomatic ties were established in 1961. The countries share cordial relations with shared principles and values- democracy, human rights, rule of law, freedom of expression, peace, respect for sovereignty and territorial integrity.
Bilateral Trade: India-Paraguay bilateral trade stood at USD 477 million in FY23.
- India's imports: soya oil and related products, iron and steel, aluminium, and animal products.
- India’s exports: motor vehicles, agrochemicals, auto parts and pharmaceutical products.
Economic cooperation: The two countries can expand cooperation in areas such as digital technology (Digital Public Infrastructure), critical minerals, energy, agriculture (AgriStack), healthcare, defence, railways and space.
- Paraguay is rich in natural resources and minerals and has the potential to be a reliable regional partner to India.
- India can share the expertise in the Digital Public Infrastructure with Paraguay.
India has a Preferential Trade Arrangement with South American trading bloc MERCOSUR. India and Paraguay can partner in expanding regional commerce in Latin America.

The two countries are integral parts of the Global South with shared challenges- such as cybercrime, organised crime, and drug trafficking.

MERCOSUR:

MERCOSUR is a Latin American trade bloc including Brazil, Bolivia, Argentina, Paraguay and Uruguay formed in 1991.
MERCOSUR members agree to the free movement of goods and services between member countries.
MERCOSUR-India Preferential Trade Agreement (PTA) signed in 2004.

Location of Paraguay

Paraguay is a landlocked country in south-central South America.
It shares its borders with three countries: Bolivia, Argentina and Brazil.

The President’s first visit will add new strength to the pillars of trust, trade, and close cooperation in the relations and will also add new dimensions to India-Latin America relations.

25 Years of India-Germany Strategic Partnership

Context: India and Germany celebrate 25 years of strategic partnership rooted in peace, prosperity, people-to-people ties, and sustainable development.

Relevance of the Topic: Mains: India-Germany Strategic Partnership.

With the recent articulation of Germany’s- Focus on India strategy, new German Coalition Treaty, and reaffirmation through high-level political engagements, the partnership is poised to deepen further.

As the 3rd and 4th largest economies in the world respectively, Germany and India share robust economic and developmental partnership, essentially standing on four pillars- peace, prosperity, people and the future of our planet.

India-Germany Bilateral Relations:

Multilateral Cooperation:

Both countries exchange views in multilateral fora including G20 and in the UN on global issues such as Climate Change and Sustainable Development.
Germany and India support each other on UNSC expansion within the framework of the G4.
Germany is also a part of International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI).

Bilateral exchanges: Since 2000, India and Germany have had a 'Strategic Partnership' which has been further strengthened with the launch of Intergovernmental Consultations (IGC) in 2011 at the level of Heads of Government.

Economic Partnership:

Germany is India’s largest trading partner in the EU, with bilateral trade crossing $25 billion (2022-23), showing strong economic interdependence.
Collaboration on Infrastructure projects like- Projects like the Delhi-Meerut RRTS, operated by Deutsche Bahn (German National Rail Company). Around 2,000 German companies are active in India, and they create more than 750,000 jobs for Indians.
In 2022, Under Indo-German Green and Sustainable Development Partnership (GSDP), Germany committed €10 billion in preferential loans and grants for India, over a span of 10 years.
India-EU Free Trade Agreement could further amplify the economic integration between two major global economies.

Energy Partnership: German technology and investment are supporting large-scale solar and wind energy projects, particularly in states like Gujarat. German private companies are contributing to India’s green infrastructure. E.g., producing rotor blades for wind turbines deployed in India.

Emerging technologies: Joint research in areas such as green hydrogen, AI, biotechnology, and climate tech. Cooperation in the renewable energy sector, biodiversity and smart city projects.

Defence cooperation: Bilateral Defence Cooperation Agreement provides the framework for bilateral defence ties. Joint military exercises like Tarang Shakti Exercise (2024). Mutual Legal Assistance Treaty between India and Germany ensures greater synergy in countering terror by sharing intelligence and coordinating joint operations.

People-to-People Ties: Over 50,000 Indian students study Germany, the largest group of foreign students in German universities.

Enhanced cooperation in the Indo-Pacific, green technologies, and skilled workforce mobility, alongside progress on the India-EU Free Trade Agreement will be critical to advancing the full strategic potential of this bilateral partnership.

India-Oman FTA faces ‘Omanisation’ Policy Hurdle

Context: India and Oman are currently negotiating a Comprehensive Economic Partnership Agreement (CEPA) aimed at deepening bilateral trade, investment, and strategic engagement. ‘Omanisation’ is the last key issue in conclusion of India-Oman FTA talks.

Relevance of the topic:

Prelims: Key facts related to FTA, CEPA.

Mains: Significance of India-Oman FTA and challenges.

Major Highlights:

Initiated in November 2023, the CEPA was expected to be concluded by mid-2024. However, progress has been impeded by Oman’s ‘Omanisation’ policy.
Omanisation policy implemented by Oman aims to boost the employment of its citizens in the private sector. The policy mandates companies to meet specific quotas for hiring Omani nationals. These quotas vary by sector and are periodically revised.
India’s Response: India wants that the regulations on compulsory employment of Omanis in various sectors be frozen at the current level for India, and not increased after the India-Oman CEPA is signed.

India-Oman Trade Relations

Oman is India’s third largest trading partner in the Gulf Cooperation Council (GCC). The bilateral trade was ~$9 billion in FY2024.
India’s key imports from Oman: petroleum products and urea account for over 70% of imports. Other important items- propylene and ethylene polymers, pet coke, gypsum, chemicals and iron and steel.
India’s main exports to Oman: petroleum products, iron and steel, rice (particularly basmati), processed minerals, ships, boats and floating structures, electrical machinery, machinery parts, tea, coffee, spices, fruits and meat products.

Potential Gains from CEPA

Boost to Indian Exports: Indian goods worth $3.7 billion like gasoline, iron & steel, electronics, machinery may benefit from removal of 5% import duty in Oman.
Services Sector Opportunity: India hopes to send more professionals to Oman, and hence does not want increased restrictions related to employment of expats.
Strategic Leverage in West Asia: India-Oman CEPA can widen India’s access to West Asia, fostering economic and strategic ties in a region of critical importance. Enhances India’s trade connectivity and access to critical maritime routes and markets in the Gulf.

India-Oman CEPA holds strategic and economic significance for India’s outreach to West Asia. Resolving the ‘Omanisation’ hurdle is key to unlocking trade potential, enhancing market access, and strengthening bilateral ties in a critical region.

CPEC set to be expanded to Afghanistan

Context: China-Pakistan Economic Corridor (CPEC) is set to be expanded to Afghanistan with the foreign ministers of the three countries agreeing on it as part of broader efforts to boost trilateral cooperation.

Relevance of the topic:

Prelims: Key facts related to CPEC.

Mains: Strategic Challenges for India post CPEC extension to Afghanistan.

What is the China-Pakistan Economic Corridor?

CPEC is a flagship project under China’s Belt and Road Initiative (BRI) launched in 2015.
It aims to connect China’s Xinjiang province to Pakistan’s Gwadar Port through a network of roads, railways, and energy projects in order to facilitate trade and economic integration.
The project has been touted to boost Pakistan's economy and provide China with direct access to the Arabian Sea.
The original $46 billion infrastructure project has now ballooned to over $62 billion in investments.

What does CPEC’s entry into Afghanistan mean?

The CPEC’s extension into Afghanistan involves connecting Pakistani infrastructure to Afghan roads, railways and mineral-rich provinces, potentially linking the entire region to China’s western logistics and trade networks.
This move could include:
- Expanding the ML-1 railway line to connect with Afghan freight corridors
- Building highways through Torkham and Spin Boldak crossing points (key border crossing points between Pakistan and Afghanistan).
- Chinese access to Afghanistan’s vast lithium and rare earth resources.
- Energy pipelines connecting Iran and Central Asia through Afghan territory.
- Potential military logistics disguised as trade infrastructure.

India’s concerns around CPEC:

India has been severely critical of the CPEC as:

Violate India’s Sovereignty: The project is a violation of India’s sovereignty and territorial integrity as it passes through Pakistan-occupied-Kashmir, part of India’s territory.
Strategic Encirclement: India perceives CPEC as part of China's strategy to encircle India through infrastructure and military partnerships with neighbouring countries, thereby increasing China's influence in South Asia.
Security Concerns: The development of infrastructure in PoK and Balochistan under CPEC raises security concerns for India, as it could facilitate greater military mobility for Pakistan and China in the region.
Terror-nexus risk: Taliban regime, which once harboured Jaish-e-Mohammed and Lashkar-e-Taiba fighters, may once again serve as a launchpad for anti-India activities. With Chinese funds and Pakistani intelligence support, this triangle could fund, train, and export terrosim into Indian territory.
Undermines India's regional connectivity projects: India fears that CPEC could undermine its own regional connectivity projects, such as the Chabahar port in Iran, by providing alternative trade routes that bypass India.

Expansion of CPEC into Afghanistan represents a strategic challenge for India, as it could alter the regional balance of power and affect India's security and economic interests.

Thus, India needs to reassess its regional strategies and strengthen its diplomatic engagements to safeguard its interests and maintain its influence in South Asia.

India restricts Bangladeshi Exports via all Land Ports

Context: India has restricted Bangladeshi ready-made garment exports through land ports, citing unfair trade practices. This decision is in response after Bangladesh imposed restrictions on export of Indian yarn and rice via its land ports.

Relevance of the Topic: Mains: India-Bangladesh bilateral relations: Key Developments

India restricts Bangladeshi Exports via Land Ports:

Bangladesh will no longer be allowed to use Indian land ports to export specified commodities to India.

Specified commodities will be prevented from entering India through the land ports of Tripura, Assam, Meghalaya and Mizoram. The specified items include ready-made garments, plastic, wooden furniture, juices, carbonated drinks, fruit-flavoured drinks, bakery, confectionery, cotton yarn, and dyes.
Ready-made garments will be allowed to enter India only through the ports of Kolkata and Mumbai, where the cargo shipments will be subjected to mandated inspections.

Deteriorating Trade Relations: Recent developments:

Bangladesh was India’s largest trade partner in South Asia, accounting for bilateral trade worth $18 billion in FY 2022-23. Political and economic tensions between India and Bangladesh are growing, reflected by:

India ended the Transshipment Facility for Bangladesh that allowed export cargo from Bangladesh to third countries via Indian Land Customs Stations, en route to Indian ports and airports.
- The transshipment arrangement began in 2020. Under this system, cargo could be transported through Indian borders and shipped from Indian ports or airports, destined for third countries including Bhutan, Nepal, and Myanmar.
Bangladesh imposed port restrictions on export of Indian yarn via land ports allowing the yarn exports only via seaports.
India imposed port restrictions on imports from Bangladesh of ready-made garments of all categories across all land ports- LCS (Land Customs Stations) and ICP (Integrated Check Posts).

The move is expected to complicate the already fragile India-Bangladesh relationship; given Bangladesh's increasing ties with China. At least 93% of Bangladesh’s ready-made garment exports to India pass through the land ports.

The restrictions imposed on specified items on all LCS and ICP will also help advance the local manufacturing sector in India's north-east region.

Also Read: India-Bangladesh Border Fencing Issue

India notifies WTO of plan to impose retaliatory tariffs on US imports

Context: India has notified the World Trade Organisation (WTO) that it plans to impose $7.6 billion in retaliatory tariffs on import of the selected US goods. This is in retaliation for the US increasing duties on steel and aluminium imports to 25%.

The US stance at the WTO is that the tariffs on Indian goods were imposed on national security grounds and should not be regarded as safeguard measures.

Relevance of the Topic : Prelims: Key facts related to GATT, WTO Agreement on Safeguards (AoS).

India’s Response

India maintains that the measures taken by the US are not consistent with the General Agreement on Tariffs and Trade 1994, and the Agreement on Safeguards (AoS). The US failed to notify the WTO and did not conduct the mandatory consultations under Article 12.3 of the WTO Agreement on Safeguards. Hence, India has the right to retaliate.
India has the right to impose reciprocal measures under WTO rules due to adverse trade effects, after the expiration of thirty days from the date of this notification.
The US tariffs have affected $7.6 billion worth of Indian exports, leading to an estimated $1.91 billion in additional duties. India aims to recover this equivalent amount by suspending concessions or increasing tariffs on the US goods.

WTO Agreement on Safeguards

WTO AoS allows the countries to temporarily restrict imports (E.g., through higher tariffs or quotas) to protect a domestic industry from serious injury caused by a sudden surge in imports.
Safeguard measures must be applied to imports from all countries equally. No selective targeting of countries is allowed, unlike anti-dumping measures.
Countries must notify the WTO about the proposed safeguard measures and must provide evidence of injury and details of the proposed action.
As per Article 12.3, Countries imposing safeguards must hold consultations with affected countries before applying the measure. Failure to do so allows the affected countries to take retaliatory measures.
Safeguard measures are temporary. Maximum initial duration is 4 years, extendable up to 8 years under strict conditions. Measures must be progressively liberalised (i.e., reduced in severity) over time.
Countries affected by the measure can seek compensation. If not provided, they can take countermeasures (retaliatory tariffs), as India is planning.

If India does go ahead with its retaliatory measures, it would not be the first time. In June 2019, India imposed higher tariffs on 28 products from the US, after the U.S. removed India from its Generalised System of Preferences (GSP) and refused to discontinue its 2018 steel and aluminium tariffs. The duties, covering $240 million in trade value, were withdrawn in 2023.

India-Saudi Arabia Relations

Context: Recently, the Indian Prime Minister was on a two-day state visit to Saudi Arabia. India’s Prime Minister and Saudi Crown Prince co-chaired the 2nd India–Saudi Arabia Strategic Partnership Council (SPC) at the Royal Palace in Jeddah, Saudi Arabia.

Relevance of the Topic:Mains: Bilateral Relations: India and Saudi Arabia.

Major Highlights of the Visit

The visit helped deepen the India-Saudi Arabia partnership that has been on a remarkable growth trajectory since 2016. The countries:

Reinforced their traditional energy partnership by sealing an agreement on setting up two oil refineries in India. India is the world’s third-largest importer and consumer of oil, relying on imports for >85% of its crude oil requirements.
Added two new ministerial committees – one on defence and another on tourism – under the Strategic Partnership Council (SPC).
Vowed to conclude bilateral investment treaty as early as possible. The two countries agreed to start talks to conclude the India-Gulf Cooperation Council (GCC) Free Trade Agreement.
Concluded a preliminary pact on cooperation in space activities for peaceful purposes.
Pledged to work together in new and emerging technology domains like artificial intelligence, cybersecurity, and semiconductors.
Pledged deeper cooperation in maritime border security, combating transnational crime, narcotics, and drug trafficking.

India-Saudi Arabia Relations

Economic Relations: India is the 2nd largest trade partner of Saudi Arabia whereas Saudi Arabia is the 5th largest trading partner of India. In FY24, bilateral trade stood at USD ~43 billion.
Energy Partnership: Saudi Arabia was India’s 3rd largest crude and petroleum products sourcing destination for FY24. Beyond joint projects in the refining and petrochemical sector, the countries are exploring innovative uses of hydrocarbons; grid automation, connectivity, and security; energy storage; green hydrogen transport.
Strategic Partnership Council: SPC was set up in 2019 with two ministerial committees, one focusing on political and security issues and the second looking at the economy and investment. It serves to steer the bilateral relationship to include newer areas of cooperation like green energy, health, technology, and agriculture.
Defence Cooperation: The countries recently concluded their first land forces exercises (SADA TANSEEQ) and two rounds of naval exercises (AL MOHED AL HINDI). In 2024, an agreement was signed for defence export from India to Saudi Arabia worth USD 225 million.
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.
People-to-People ties: Around 2.7 million Indian nationals reside in Saudi Arabia, reflecting the strong people- to-people bonds. The annual Hajj pilgrimage is another important component of India-Saudi Arabia bilateral relations.

Significance of Saudi Arabia:

Look West Strategy: Improving relations with Saudi Arabia is an integral part of India’s “Look West Strategy,” which seeks to bind India closer to the countries of this region.
Security Cooperation: Saudi Arabia has been sending back Indian fugitives wanted for criminal and terrorist activities in India. Saudi Arabia can use its political and financial clout to get Pakistan to halt anti-India terrorism.
Investment Potential: India is looking at attracting Saudi Arabia’s Public Investment Fund to invest in its National Investment and Infrastructure Fund (NIIF). Saudi Arabia has pledged an investment of up to $100 billion in India.
Stakeholder in IMEEC: India-Middle East-Europe Economic Corridor was unveiled in 2023. Saudi Arabia is a key member of this ambitious and cost-effective ship-to-rail transit network.

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.