Amid escalated tensions in the Red Sea and a drone strike targeting Saudi oil en route to India, Prime Minister Narendra Modi engaged in a crucial telephonic dialogue with Crown Prince Mohammed bin Salman Al Saud. Their recent exchange reviewed bilateral strides, focusing on geopolitical complexities post the Crown Prince’s September 2023 visit and G20 Summit participation. The dialogue emphasized regional stability, maritime security, and shared concerns about terrorism and violence. This diplomatic discourse also celebrated collaborative efforts, including an energy MoU and the Global Biofuel Alliance. The narrative highlights the nations’ historical journey, major milestones, and key collaborations, underscoring their burgeoning strategic partnership and collective vision for sustainable development and global interconnectedness.
Amidst heightened tensions in the Red Sea region and a drone attack targeting a ship transporting Saudi oil to India, Indian Prime Minister Narendra Modi held a crucial telephonic talk with His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Crown Prince and Prime Minister of Saudi Arabia. This recent diplomatic exchange underscores the significance of the conversation as both leaders navigate the complexities of the current geopolitical scenario.
This dialogue served as a review of the advancements made in the bilateral Strategic Partnership, building upon a three-day State visit of the Crown Prince to India in September 2023, coupled with his engagement in India’s G20 Presidency Summit on Sep 9-10. The leaders not only reflected on past achievements but also delved into the intricacies of a forward-looking agenda, outlining the contours of an enduring bilateral partnership for the future as India’s Ministry of External Affairs reported.
Navigating through the complex currents of the contemporary West Asian region, the leaders shared deep concerns regarding the pervasive threats of terrorism, escalating violence, and the heart-breaking loss of civilian lives. Prime Minister Modi steadfastly reiterated India’s principled stance on the Israel-Palestine issue, emphasizing the crucial need for sustained humanitarian aid to the affected population.
A harmonious chord struck between the leaders, resonating in their commitment to collaborative efforts aimed at fostering peace, security, and stability in the region. The imperative of maintaining maritime security and upholding the freedom of navigation emerged as pivotal points of emphasis during their discussions.
The profound nature of this diplomatic exchange found its digital manifestation, where Prime Minister Modi encapsulated the essence of the conversation on [Platform X]: “Held a good conversation with my Brother HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud on the future of Strategic Partnership between India and Saudi Arabia. We exchanged views on the West Asia situation and shared concerns regarding terrorism, violence and the loss of civilian lives. Agreed to work together for peace, security and stability in the region.”
He also reiterated India’s firm position on the Israel-Palestine issue, advocating for sustained humanitarian aid— “…together, we affirmed our dedication to fostering peace, security, and stability in the region, underscoring the vital importance of maritime security and the freedom of navigation.” Remarkably, PM Modi extended warm congratulations to Saudi Arabia for being chosen as the host for Expo 2030 and the FIFA Football World Cup 2034. The conversation concluded with an agreement to maintain ongoing communication and collaboration between our nations.
As mentioned earlier, the significant communication unfolds against the backdrop of recent geopolitical developments, notably an alleged drone strike on the MV Chem Pluto near India’s west coast. Responding decisively, India deployed three warships to the Arabian Sea, addressing the evolving security scenario. As investigations unfold, India remains resolute in ensuring that the perpetrators of the attack face justice.
Given India’s pivotal role as a Net Security Provider in the Indian Ocean Region, the commitment to securing sea lanes and facilitating maritime trade was underscored by Defence Minister Rajnath Singh. In light of India’s position as the world’s third-largest oil importer, with Saudi Arabia and Iraq among its primary suppliers, the region’s security takes on heightened importance.
Commencing a new chapter in India’s energy security, the Union Minister for New & Renewable Energy and Power, Shri R. K. Singh, divulged significant information during his written responses to questions in the Rajya Sabha on December 12, 2023.
The Union Minister for New & Renewable Energy and Power revealed that India and Saudi Arabia entered into a significant Memorandum of Understanding (MoU) on Energy Cooperation on September 10, 2023. This comprehensive agreement covers cooperation in various areas, including Hydrogen, Electricity, Renewable Energy, Energy Efficiency, Petroleum, Natural Gas, Strategic Petroleum Reserves, and Energy Security. Another MoU, signed on October 8, 2023, specifically focuses on Electrical Interconnection, Green/Clean Hydrogen, and Supply Chains.
This strategic collaboration aims to mutually benefit both nations by leveraging their strengths to cultivate Green Hydrogen ecosystems domestically. Through the National Green Hydrogen Mission, India approved by the Union Cabinet in January 2023, allocates ₹19,744 crore from FY 2023 – 24 to FY 2029 – 30. The mission envisions making India a Global Hub for the production, usage, and export of Green Hydrogen and its derivatives.
By 2030, the National Green Hydrogen Mission anticipates achieving several key outcomes, including a Green Hydrogen production capacity of 5 MMT per annum, contributing significantly to reducing fossil fuel imports. The mission’s success is estimated to leverage over ₹8 lakh crore in total investments, generating over 6 lakh jobs while averting nearly 50 MMT per annum of CO2 emissions through Green Hydrogen production.
The Mission provides support for pilot projects in sectors such as low-carbon steel, mobility, shipping, and ports. Various financial and non-financial measures, including the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, pilot projects, research and development, and infrastructure development, have been introduced to achieve the mission’s objectives.
To further incentivize the production and utilization of Green Hydrogen, provisions like the waiver of inter-state transmission charges for 25 years and regulatory frameworks promoting renewable energy open access have been implemented. Additionally, the Ministry of Environment, Forests and Climate Change has exempted Green Ammonia plants from prior environmental clearances.
Challenges include the cost disparity between Green and Grey Hydrogen, storage and transportation expenses, and the lack of established supply chains and testing infrastructure. However, India’s competitive renewable energy tariffs and a single integrated grid provide advantages for producing Green Hydrogen at competitive rates.
The collaboration with Saudi Arabia aligns with the global trend, as many countries and regions, including the European Union, Singapore, South Korea, and Japan, are adopting strategies to import Green/Clean Hydrogen and its derivatives. This collaborative effort reflects a forward-looking approach to energy cooperation and sustainable development.
Coinciding with India’s G20 Presidency Summit, the state visit of Crown Prince Mohammed bin Salman (MbS) underscored the enduring and robust relationship between these neighbouring nations. India and Saudi Arabia inked 47 MoUs post the fruitful G20 Summit. These pacts span ICT, entrepreneurship, chemicals, energy, and advanced manufacturing, aiming at unlocking USD 3 trillion in investments. Saudi Arabia’s inclusion in the India-US Economic Corridor is poised to rival China’s BRI, encompassing the India-Middle East-Europe axis. PM Modi and Crown Prince Salman discussed comprehensive advancements, applauding Saudi’s Vision 2030 for its dynamic transformations in commerce and tech diversification. This diplomatic connection, deeply rooted in history, has witnessed significant milestones over the years.
The genesis of a new era in political ties between India and Gulf nations was marked by India’s External Affairs Minister, Jaswant Singh’s visit to Riyadh in January 2001. During this visit, the Saudi Foreign Minister, Prince Saud Al-Faisal, emphasized the autonomy of their bilateral ties, free from the influence of external factors. Subsequently, King Abdullah bin Abdulaziz’s visit to India in January 2006, as the chief guest at the Republic Day celebrations, solidified “strategic energy ties” and led to the signing of the Delhi Declaration, followed by the Riyadh Declaration in 2010, elevating their partnership to a strategic level.
Prime Minister Narendra Modi’s visit to Riyadh in April 2016 further strengthened collaboration, spanning political, economic, security, and defence domains. King Salman’s conferral of the King Abdulaziz Sash, Saudi Arabia’s highest civilian honour, underscored the Kingdom’s profound commitment to the bilateral relationship.
Building on this momentum, Crown Prince Mohammed bin Salman’s maiden visit in February 2019 marked a significant leap forward, with Saudi Arabia committing a substantial investment of approximately US$100 billion in India. Six Memoranda of Understanding (MoUs) covering various areas, including investment, tourism, and participation in the International Solar Alliance, were signed, strengthening cooperation in diverse fields.
The subsequent visit of Prime Minister Modi to Riyadh in October 2019 resulted in the signing of the Strategic Partnership Council (SPC) Agreement, a high-level council overseeing and guiding the bilateral relationship. Twelve MoUs and agreements were inked during this visit, spanning energy, security, defence production, civil aviation, medical products, and more.
In September 2022, India’s External Affairs Minister, Dr. S. Jaishankar, visited Saudi Arabia, signing a Memorandum of Understanding (MOU) concerning consultations between India and the Gulf Cooperation Council (GCC). The visit emphasized the continued diplomatic engagement between the two nations.
The visit of Prince Abdulaziz bin Salman, the Saudi Minister of Energy, in October 2022, further solidified bilateral ties with key Indian leaders, fostering collaboration in sectors like commerce, industry, petroleum, and electricity.
The most recent development, the Memorandum of Understanding outlining the Principles of the India–Middle East–Europe Economic Corridor (IMEC), stands as a monumental stride. This initiative, involving Saudi Arabia, the European Union (EU), India, the United Arab Emirates (UAE), France, Germany, Italy, and the United States (US), aims to reshape global connectivity and trade. IMEC is designed to establish two corridors— the Eastern corridor connecting India to the Arabian Gulf and the Northern corridor binding the Arabian Gulf to Europe, creating an innovative paradigm of global interconnection.
IMEC is a response to the evolving global dynamics and an alternative to China’s Belt and Road Initiative (BRI). Unlike BRI, IMEEC promotes cooperation among equal partners, harmonizing standards while each member constructs their infrastructure. The initiative also reflects a recalibration of global dynamics, reducing dependence on certain national regimes.
In this context, India and Saudi Arabia solidified their collaboration by signing an agreement to join the Global Biofuel Alliance during the MENA Climate Week 2023 in Riyadh. This alliance, spearheaded by India, emphasizes sustainable biofuels’ development and trade. Saudi Arabia’s participation underscores a shared commitment to eco-friendly energy solutions. The collaboration signifies a strategic partnership between the two nations, aligning with global efforts to address climate change. This joint initiative reflects the evolving nature of their relationship, extending beyond economic and energy ties to include shared environmental goals for a sustainable future.
In terms of trade, India and Saudi Arabia share a significant economic relationship, with bilateral trade reaching US$52.76 billion in FY23. India’s second-largest trade partner, Saudi Arabia, stands as India’s fourth-largest trading partner. Investments and collaborations in sectors such as startups, digital infrastructure, healthcare, food security, renewable energy, and space were highlighted during the India-Saudi Arabia Investment Forum 2023.
Energy cooperation remains pivotal, with Saudi Arabia being a crucial source of crude oil for India. In FY23, Saudi Arabia supplied 16.7% of India’s total crude oil imports, and 11.2% of its petroleum product imports, underlining the strategic energy partnership. In conclusion, the evolving geopolitical scenario has laid the foundation for a flourishing partnership between India and Saudi Arabia. Their historical ties, revitalized through recent strategic agreements and high-level engagements, have not only bolstered trade and energy cooperation but also fostered collaboration in various sectors. The IMEC initiative symbolizes a response to evolving global needs, offering a blueprint for unprecedented cooperation and development. As these two nations deepen their partnership, they are not only addressing immediate challenges but also laying the foundation for a brighter, more interconnected future that transcends borders and ideologies. This dynamic relationship represents a model of cooperation in a world where collaboration among nations is more crucial than ever.
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