Pillars of cooperation:

• Energy Cooperation:

• Crude Oil: India imports almost 85% of its energy.
• Strategic Energy Partnership: Both parties signed a Strategic Energy Partnership based on complementarity and dependency (SEP). As part of the SEP, Saudi Arabia agreed to enhance oil supplies to India under ‘evergreen’ long-term contracts.
• LPG Supply: Saudi Arabia is supplying more LPG (butane and propane) to India. After Qatar, Saudi Arabia supplies India with LPG. Saudi Arabia supplies about 32% of the world’s LPG needs.
• Cooperation in Renewable Energy: India’s Intended Nationally Determined Contributions (INDC) commit it to produce 40% of its total energy needs from renewable sources by 2030. Two countries have inked an MOU to boost their renewable energy cooperation. Collaboration is critical in the renewable energy field.

• Economic Ties and Investments:

• India-Saudi Arabia relations provide possibilities for development and collaboration in economic linkages and investments.
• Trade: Bilateral trade in 2018-2019 was $34 billion. India is Saudi Arabia’s fourth-largest commercial partner and export market.
• An MOU was recently inked to allow the use of Indian RuPay Debit Cards in Saudi Arabia.
• Investments: Investments in petrochemicals, infrastructure, and mining total $100 billion. By 2024, India intends to attract over $100 billion in Oil and Gas Infrastructure.
• The Ratnagiri Refinery and Petro-Chemical Projects, estimated at US$ 44 billion, are now being built by ARAMCO of Saudi Arabia and ADNAC of the United Arab Emirates.

• Strategic/ Defence Relations:

• Riyadh Declaration: In 2010, India-Saudi Arabia relations UPSC inked a ‘Strategic Partnership’. The Riyadh Declaration. Both states become strategic allies after signing the 2010 statement. This ‘Strategic Partnership’ has expanded to include considerable defence and security cooperation.
• Counter-terrorism cooperation: Saudi Arabia has led the way in information sharing and counter-terrorism collaboration. Many high-level terrorists sought in India have been deported from Saudi Arabia.
• Extradition Treaty and Agreement: Both parties have signed extradition treaties and agreements on sentencing. Saudi Arabia has given over a dozen suspects to India, including Abu Jundal.
• To counter Pakistan: India recognizes Saudi Arabia’s crucial role in Pakistan and aims to persuade a “terror supporting” state to abandon terrorism as a strategy. Saudi-Pakistani ties have recently worsened, and it is predicted that Saudi Arabia would draw closer to India.
• Iran Rivalry: Saudi Arabia fears an assertive Iran. And India and Iran are friends. It may also help ease tensions and bring peace to the area.

• Diaspora:

• Saudi Arabia continues to be a popular place for Indians in the diaspora who want to work and reside there. In Saudi Arabia, around 2.6 million Indians work and reside.

• This has also helped to maintain the continuous flow of remittances into India. Saudi Arabia sends US$ 11 billion in remittances.

Vision 2030′ of Saudi Arabia

The oil-dependent country has now realized the impact of the ‘resource curse. So it established Vision 2030 Saudi Arabia and picked India as one of eight important economic partners.

An ambitious country, a lively society, and an economic boom are the three main aspects of the vision.

Vibrant society: To build a dynamic community, Saudi Arabia will concentrate on its citizens as well as the Islamic religion. Increase the visitors from 8 million that can go on Umrah pilgrims to 30 million on an annual basis; double the amount of Saudi historic sites that have been listed with UNESCO; promote the formation of cultural and entertainment possibilities within the Kingdom; promote healthy lifestyles by increasing the proportion of residents who exercised at least once every week from 13% to a whooping 40%, and develop Saudi localities, three of which are acknowledged in the World Cities Index.

Thriving economy: The country will boost its economy and generate dynamic work possibilities for its residents. Continuing to expand the economy of the country through continuous commercialization of state-owned properties, including the establishment of a public treasure fund financed by Saudi Aramco’s partial IPO; reviving undeveloped sectors including manufacturing, sustainable sources, and travel industry; and modernizing Saudi educational curriculum as well as standards from childhood. Saudi Arabia would have five institutions among the world’s top 200 by 2030 and encourage financial support to small as well as medium-sized companies (SMEs). Increasing SMEs’ share of Gross Domestic Product from 20% to 35% by 2030.

Ambitious nation: To become an ambitious country, Saudi Arabia must concentrate on accountability, openness, and efficiency. Solid foundations are required for long-term success. It will promote transparency by extending online services as well as enhancing governance standards, develop the King Salman Program for Human Capital Development to educate government personnel in best practices, and bolster the non-profit sector’s efficiency and influence.

Conclusion

• As previously said, Saudi Arabia is not an island. Its effect is global. This would help India become an economic superpower and permanent UNSC member.

West Asia is experiencing massive transformation. Nations rally with Israel to fight Iran and Turkey. Any role in Middle Eastern politics will have to be considered. India-Saudi Arabia military exercise must tread cautiously and make decisions in its national interest.

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