Modi’s visit to Saudi Arabia marks deepening India-Gulf economic and strategic ties

Indian Prime Minister Narendra Modi arrived in Jeddah on Tuesday at the invitation of Saudi Crown Prince Mohammed bin Salman, marking his third visit to the kingdom since 2016 and underscoring India’s growing economic and strategic engagement with the Gulf.

Modi’s latest visit is seen as a significant step in advancing the India-Saudi Strategic Partnership Council, which the two leaders will co-chair. The council, established in 2019, aims to institutionalize and strengthen cooperation between New Delhi and Riyadh across key sectors including energy, infrastructure, and technology.

“Whatever one may say, Prime Minister Modi deserves credit for maintaining simultaneous friendships with Iran, Israel, and the Arab world,” said Kamran Khan in a vlog. He noted that only three Indian prime ministers had visited Saudi Arabia in the past 70 years—and Modi alone accounts for three visits.

The timing of the trip is notable. It precedes a planned official visit by former U.S. President Donald Trump to Saudi Arabia next month, which Khan believes could have broader implications for global trade and economic diplomacy.

India-Saudi economic ties have grown rapidly. Bilateral trade hit $43 billion in 2023–24, making Saudi Arabia India’s second-largest trading partner. India exported goods worth $11.56 billion—mainly engineering products, vehicles, chemicals, textiles, and food items—while importing $31.42 billion worth of crude oil, LPG, fertilizers, plastics, and other energy products.

Saudi Arabia supplied 33.35 million metric tons of crude oil to India last year, accounting for 14.3 percent of the country’s total oil imports. It also met 18.2 percent of India’s LPG requirements, making it India’s third-largest LPG supplier.

In addition to trade, investment flows are accelerating. Saudi Arabia invested nearly $10 billion in India last year, with funds directed toward energy, steel, chemicals, telecommunications, and startups. Indian giants like Tata Consultancy Services, Larsen & Toubro, and Wipro have launched projects worth about $3 billion in Saudi Arabia.

Engineering firm Essar Group is constructing a $4 billion steel plant in Ras Al-Khair, aiming to produce 4 million tons annually. Meanwhile, Wardwizard Innovations has entered the electric vehicle market in Saudi Arabia through a joint venture focused on manufacturing and sales.

Indian companies, including Tata and the Oberoi Group, are also investing in Saudi Arabia’s ambitious $63 billion Diriyah project, which spans health, education, and hospitality. Business leaders Mukesh Ambani and Gautam Adani are pushing for even stronger economic ties, with investments in petrochemicals and shipping respectively.

The Modi-MBS meeting is viewed as a follow-up to Prince Mohammed bin Salman’s September 2023 visit to New Delhi during the G20 summit. That visit resulted in the signing of 50 agreements and a joint task force to explore $100 billion in Saudi investments in India.

The two sides also agreed to develop the India-Middle East-Europe Economic Corridor (IMEC), aimed at reducing trade costs and strengthening supply chains—seen as a rival to China’s Belt and Road Initiative.

While not directly addressed during Modi’s visit, Pakistan remains a factor in Gulf diplomacy. Days before Modi arrived in Saudi Arabia, UAE’s foreign minister was in Islamabad. Whether this signals a broader regional dialogue is uncertain, but Khan suggested it’s time for Pakistan’s foreign policy to prioritize geo-economics alongside geopolitics.