Date : 13/09/2023

Relevance: GS Paper2 - International relations- Bilateral relations and Its Implications for India

Keywords: Strategic Partnership Council (SPC), West Coast Refinery Project, e-Thawtheeq system, Hajj Pilgrimage, COVISHIELD vaccine

Context-

• Two days after the launch of the India-Middle East-Europe Economic Corridor, Prime Minister Narendra Modi emphasized the significance of Saudi Arabia as "one of the most important strategic partners of India." The exchange between the two nations occurred during the state visit of Crown Prince Mohammed Bin Salman of Saudi Arabia.
• Their discussions encompassed various aspects of cooperation, including energy, defense, security, education, technology, transportation, healthcare, tourism, culture, space, and semiconductors.

Historic Economic Corridor

• The highlight of the visit was the launch of the India-Middle East-Europe Economic Corridor. Prime Minister Modi described this corridor as a historic step to connect India, West Asia, and Europe, emphasizing its potential to boost economic growth, enhance the energy sector, and promote digitization. This initiative not only strengthens bilateral ties but also contributes to regional stability.

Strategic Partnership Council (SPC)

• Prime Minister Modi and Crown Prince Bin Salman co-chaired the first meeting of the India-Saudi Strategic Partnership Council (SPC), established in October 2019. This council serves as a platform for deepening cooperation and fostering long-term strategic ties between the two nations.
• Saudi Arabia's Crown Prince Mohammed bin Salman Al Saud and Prime Minister Narendra Modi engaged in extensive discussions, focusing on expanding trade and security ties. The leaders also co-chaired the inaugural summit-level meeting of the India-Saudi Arabia Strategic Partnership Council (SPC).
• The India-Saudi Arabia Strategic Partnership Council, established in 2019, marked a significant milestone in bilateral relations. India became the fourth country, after the UK, France, and China, with which Riyadh formed such a strategic partnership.

Objectives of the Strategic Partnership Council

• The creation of the SPC aimed to establish a high-level council to steer the Indo-Saudi relationship, as stated by the Ministry of External Affairs (MEA). PM Modi emphasized that the SPC would usher in a new era of cooperation across various sectors, including trade, investment, security, and defense.

The structure of the SPC

• It consists of two primary pillars: the Committee on Political, Security, Social, and Cultural Cooperation, and the Committee on Economy and Investments.
• Within these sub-committees, engagement occurs at four distinct functional levels:

1. Summit level, involving the Prime Minister and Crown Prince
2. Ministerial-level discussions
3. Senior Officials' Meetings
4. Joint Working Groups (JWGs) for specific collaborative initiatives

Outcomes of Summit Level & Ministerial Meeting

• Investment: Outcomes from this meeting included streamlining efforts to realize the $100 billion worth of investments pledged by Mohammad Bin Salman during his visit to India in February 2019. The meeting also identified 41 areas of cooperation across domains such as Agriculture & Food Security, Energy, Technology & IT, and Industry & Infrastructure.
• Talks and Agreements: During the recent talks, India and Saudi Arabia decided to expedite the $50-billion West Coast refinery project and identified key areas for intensified cooperation, including energy, defense, semiconductors, and space. Eight agreements were signed to enhance cooperation in various sectors, including digitization and investment.

West Coast Refinery Project:

• Both nations expressed strong support for the West Coast refinery project, a trilateral endeavor involving ARAMCO, ADNOC, and Indian companies, with $50 billion already earmarked.
• Notably, a joint task force was established to facilitate the channelization of the promised $100 billion investment from Saudi Arabia. This step marked a significant advancement in their energy ties, moving towards a "comprehensive energy partnership."

Economic Agreements and Collaborations:

• During the visit, several agreements were signed, including ones between the Central Vigilance Commission of India and the Saudi Oversight and Anti-Corruption Authority, as well as between the Saudi and Indian Exim Banks.
• Additionally, collaborations were established between the National Institute of Technology of India the Saline Water Conversion Corporation of Saudi Arabia, and the National Archives of India and King Abdulaziz Foundation of Saudi Arabia. These agreements promote cooperation in areas such as anti-corruption efforts, technology, education, and archival research.

Bilateral Relations and Tourism Enhancement:

• The joint statement issued at the end of the visit emphasized Saudi Arabia's commitment to remain a "reliable partner and exporter of crude oil supplies" to India. Both nations welcomed the expansion of the private sector's involvement in agricultural and food industries.
• Strengthening defense and anti-terror cooperation was underscored, with specific attention given to preventing access to "missiles and drones" for terrorist activities. Moreover, discussions centered on boosting tourism, and showcasing Saudi Arabia's ongoing reforms.

BRICS Membership and Broader Cooperation

• Saudi Arabia's recent inclusion in BRICS added to the visit's significance. Discussions encompassed a wide array of sectors, including defense, energy, security, education, technology, transportation, healthcare, tourism, culture, space, and semiconductors, highlighting the potential for diverse cooperation.

Regional Matters

• The official talks also addressed regional issues, including Yemen and Afghanistan. Saudi Arabia expressed gratitude for India's humanitarian assistance to war-affected Yemeni people. Both nations advocated for a government in Afghanistan that represents the entire spectrum of the Afghan populace.

Strong People-to-People Connections

• Beyond economics, the ties between India and Saudi Arabia are deeply rooted in people-to-people connections. A vibrant Indian community of approximately 2.4 million resides in Saudi Arabia, playing a significant role in the host country's development and acting as bridges that enhance the multifaceted relations between the two nations.
• Additionally, Saudi Arabia facilitates the annual Hajj pilgrimage for over 175,000 Indians, highlighting the cultural and religious bonds shared by the two countries.

Anticipating a New Era of Cooperation

• As the state visit of Prince Mohammed bin Salman to India unfolds, it is poised to usher in a new era of cooperation and friendship. Building upon a solid foundation of historical ties and shared interests, this visit is expected to reinforce the strategic partnership and elevate the India-Saudi Arabia relationship to greater heights. Such advancements will benefit both nations and contribute to regional and global stability.

Conclusion

• Crown Prince Mohammed Bin Salman's state visit to India was a significant milestone in the burgeoning India-Saudi Arabia relationship. It marked a commitment to multifaceted cooperation, economic growth, and regional stability, underlining the importance of this strategic partnership in an ever-evolving global landscape.
• India can utilize its friendly relations with Saudi Arabia by convincing the kingdom to exercise its influence over Pakistan in controlling the Taliban in Afghanistan.
• A joint collaborative effort of both economies will transform the Southwest Asia sub-region.
• Currently, India has a trade deficit of USD 25.25 billion with Saudi Arabia. India should focus more on promoting exports in various sectors. It would enable us to maintain the trade balance with the kingdom while building healthy trade relations.

Source- The Hindu / The Indian Express / PIB