Indo-Saudi Arabian relations
Encyclopedia
India — Saudi Arabia relations, or Indo-Saudi relations, refers to the bilateral relationship
between the Republic of India and the Kingdom of Saudi Arabia.
Trade and cultural links between ancient India
and Arabia date back to third millennium BC. By 1000 AD, the trade relations between southern India and Arabia flourished and became the backbone of the Arabian economy. Arab traders held a monopoly over the spice trade
between India and Europe
until the rise of European imperialist empires. India was one of the first nations to establish ties with the Third Saudi State
. During the 1930s, India heavily funded Nejd through financial subsidies.
Formal diplomatic relations between contemporary India and Saudi Arabia were established soon after India gained independence in 1947. Relations between the two countries have strengthened considerably owing to cooperation in regional affairs and trade. Saudi Arabia is one of the largest suppliers of oil
to India, who is one of the top seven trading partners and the fifth biggest investor in Saudi Arabia.
In history there have been three visits to Saudi Arabia by an Indian Prime Minister
: Jawaharlal Nehru
(1955), Indira Gandhi
(1982) and Manmohan Singh
(2010). The two countries share similar views on combating terrorism
.
of Saudi Arabia to India in November 1955, both nations agreed to shape their relationship based on the Five Principles of Peaceful Co-existence. Saudi Arabia is also home to more than 1.4 million Indian workers. India was amongst the few nations to recognise the Soviet
-backed Democratic Republic of Afghanistan
while Saudi Arabia was one of the key financers and supporters of the Afghan mujahideen who fought the Soviets and their Afghan allies from Pakistan
.
. Saudi Arabia supported Pakistan's stance on the Kashmir conflict
and during the Indo-Pakistani War of 1971
at the expense of its relations with India. The Soviet Union
's close relations with India also served as a source of consternation. During the Persian Gulf War
(1990–91), India officially maintained neutrality
. Saudi Arabia's close military and strategic ties with Pakistan have also been a source of continuing strain.
Since the 1990s, both nations have taken steps to improve ties. Saudi Arabia has supported granting observer status
to India in the Organisation of Islamic Cooperation (OIC) and has expanded its cooperation with India to fight terrorism
. In January 2006, King Abdullah of Saudi Arabia
made a special visit to India, becoming the first Saudi monarch in 51 years to do so. The Saudi king and the Indian Prime Minister Manmohan Singh
signed an agreement forging a strategic energy partnership that was termed the "Delhi Declaration." The pact provides for a "reliable, stable and increased volume of crude oil supplies to India through long-term contracts." Both nations also agreed on joint ventures and the development of oil and natural gas
in public and private sectors. An Indo-Saudi joint declaration in the Indian capital New Delhi
described the king's visit as "heralding a new era in India-Saudi Arabia relations."
16 billion (USD 3 billion excluding oil) and is expected to double by 2010. India's current exports to Saudi Arabia stand at USD 2.6 billion, while Saudi Arabia's exports are in the range of USD 13.4 billion (USD 1.2 billion excluding oil). India's major exports include basmati rice, textiles and garments and machinery, while it imports organic and inorganic chemicals, metal scrap, leather, gold and oil from Saudi Arabia. Both nations are expected to expand trade and cooperation and joint ventures in telecommunications, pharmaceuticals, health services, information technology, biotechnology
, agriculture, construction projects, energy and financial services. Both countries agreed to launch joint ventures for developing gas-based fertiliser plants in Saudi Arabia. India agreed to set up institutes of higher education and research, provide educational opportunities in India for Saudi Arabian students and expand cooperation between India's Council of Scientific and Industrial Research and the Saudi Arabian Standards Organisation (SASO).
India and Saudi trade was almost USD 25 billion last fiscal year with about 2 million Indians working in Saudi Arabia .
Indian firms also has shown the interest in Saudi market after new Saudi laws and established joint venture projects or wholly owned subsidiaries in the Kingdom. According to Saudi investment authority survey, India has 56 FDI projects having worth of 304 million SAR during 2005 in Saudi Arabia. These licenses are for projects in different sectors such as management and consultancy services, construction projects, telecommunications, information technology, pharmaceuticals, etc. Moreover, several Indian companies have established collaborations with Saudi companies and working in the Kingdom in the areas of designing, consultancy, financial services and software development.
undertook a three-day visit to Saudi Arabia beginning 27 February 2010. He was accompanied by his wife Gursharan Kaur, Health Minister Ghulam Nabi Azad, Commerce and Industry Minister Anand Sharma
, Petroleum Minister Murli Deora
and Minister of State for External Affairs Shashi Tharoor
. It was the first visit to the kingdom by an Indian Prime Minister since 1982 and the third to date.
In a rare gesture, Dr. Singh and his official delegation were received at the royal terminal of the King Khalid International Airport
by Crown Prince
Sultan bin Abdul Aziz accompanied by his entire cabinet. In departure from the protocol norms, a red carpet was rolled out to the Prime Minister. The nearly 40-km route from the airport to the city centre was lined with Indian and Saudi Arabian flags.
On the second day a formal reception was held in honour of the state guests. Singh was scheduled to address the Majlis-e-Shura
, described as "a singular honour". Female diplomat Latha Reddy was permitted not to wear the abaya
or the hijab
. This special allowance was described as "largely symbolic in nature, but it is a sign of the changing times".
During his visit Dr. Singh was conferred an honorary doctorate by Saudi Arabia’s prestigious King Saud University
. An MoU
for cooperation was signed between Indian Institute of Science
, Bangalore and the King Saud University in the presence of the Prime Minister. Later, speaking at a community event at the Indian Embassy hosted by Indian Ambassador Talmeez Ahmed, the Prime Minister praised the contributions made by the over 1.8 million Indian citizens. “India is proud of you and proud of your achievements in this country,” he said.
An extradition treaty was signed by Indian Health and Family Welfare Minister Ghulam Nabi Azad
and Prince Naif bin Abdul Aziz the Saudi Arabian Second Deputy Prime Minister and Interior Minister. Four agreements pertaining to transfer of sentenced persons, cultural cooperation, Memorandum of Understanding between Indian Space Research Organisation
and King Abdulaziz City for Science and Technology for cooperation in peaceful use of outer space and joint research and information technology were also signed in presence of the two leaders. Four other agreements were also signed the day before, including one by Tata Motors
to supply school buses worth $80 million.
Dr. Singh returned home on 1 March 2010 concluding this 3-day visit. This visit is considered as India's attempt to increase the depth of relationships between the two countries and make a pitch for investments from Saudi Arabia.
International relations
International relations is the study of relationships between countries, including the roles of states, inter-governmental organizations , international nongovernmental organizations , non-governmental organizations and multinational corporations...
between the Republic of India and the Kingdom of Saudi Arabia.
Trade and cultural links between ancient India
Ancient India
Ancient India may refer to:* The ancient history of India, which generally includes the ancient history of the Asian Subcontinent, including:*Science and technology in ancient India**Indian mathematics**Astronomy**List of Indian inventions...
and Arabia date back to third millennium BC. By 1000 AD, the trade relations between southern India and Arabia flourished and became the backbone of the Arabian economy. Arab traders held a monopoly over the spice trade
Spice trade
Civilizations of Asia were involved in spice trade from the ancient times, and the Greco-Roman world soon followed by trading along the Incense route and the Roman-India routes...
between India and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
until the rise of European imperialist empires. India was one of the first nations to establish ties with the Third Saudi State
Unification of Saudi Arabia
The unification of Saudi Arabia was the process by which the various tribes, sheikhdoms, and emirates of most of the Arabian Peninsula were consolidated under the control of the House of Saud, or Al Saud, between 1902 and 1932, when the modern-day Kingdom of Saudi Arabia was proclaimed...
. During the 1930s, India heavily funded Nejd through financial subsidies.
Formal diplomatic relations between contemporary India and Saudi Arabia were established soon after India gained independence in 1947. Relations between the two countries have strengthened considerably owing to cooperation in regional affairs and trade. Saudi Arabia is one of the largest suppliers of oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
to India, who is one of the top seven trading partners and the fifth biggest investor in Saudi Arabia.
In history there have been three visits to Saudi Arabia by an Indian Prime Minister
Prime Minister of India
The Prime Minister of India , as addressed to in the Constitution of India — Prime Minister for the Union, is the chief of government, head of the Council of Ministers and the leader of the majority party in parliament...
: Jawaharlal Nehru
Jawaharlal Nehru
Jawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
(1955), Indira Gandhi
Indira Gandhi
Indira Priyadarshini Gandhara was an Indian politician who served as the third Prime Minister of India for three consecutive terms and a fourth term . She was assassinated by Sikh extremists...
(1982) and Manmohan Singh
Manmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...
(2010). The two countries share similar views on combating terrorism
Terrorism
Terrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...
.
Background
Since its independence in 1947, India has sought to maintain strong ties with Saudi Arabia, an important state and trading base in West Asia. In a major visit by King SaudSaud of Saudi Arabia
Saud bin Abdul-Aziz Al Saud was King of Saudi Arabia from 1953 to 1964. He was removed from power by Faisal because of Saud's mismanagement and waste. He was the eldest surviving son of Ibn Saud and became Crown Prince in 1933. He died in exile in Greece.-Early life:Saud was born in 1902 in Kuwait...
of Saudi Arabia to India in November 1955, both nations agreed to shape their relationship based on the Five Principles of Peaceful Co-existence. Saudi Arabia is also home to more than 1.4 million Indian workers. India was amongst the few nations to recognise the Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
-backed Democratic Republic of Afghanistan
Democratic Republic of Afghanistan
The Democratic Republic of Afghanistan was a government of Afghanistan between 1978 and 1992. It was both ideologically close to and economically dependent on the Soviet Union, and was a major belligerent of the Afghan Civil War.- Saur Revolution :...
while Saudi Arabia was one of the key financers and supporters of the Afghan mujahideen who fought the Soviets and their Afghan allies from Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
.
Development of bilateral relations
India's strategic relations with Saudi Arabia have been affected by the latter's close ties with PakistanPakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
. Saudi Arabia supported Pakistan's stance on the Kashmir conflict
Kashmir conflict
The Kashmir conflict is a territorial dispute between India and Pakistan over the Kashmir region, the northwesternmost region of South Asia....
and during the Indo-Pakistani War of 1971
Indo-Pakistani War of 1971
The Indo-Pakistani War of 1971 was a military conflict between India and Pakistan. Indian, Bangladeshi and international sources consider the beginning of the war to be Operation Chengiz Khan, Pakistan's December 3, 1971 pre-emptive strike on 11 Indian airbases...
at the expense of its relations with India. The Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
's close relations with India also served as a source of consternation. During the Persian Gulf War
Gulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...
(1990–91), India officially maintained neutrality
Neutral country
A neutral power in a particular war is a sovereign state which declares itself to be neutral towards the belligerents. A non-belligerent state does not need to be neutral. The rights and duties of a neutral power are defined in Sections 5 and 13 of the Hague Convention of 1907...
. Saudi Arabia's close military and strategic ties with Pakistan have also been a source of continuing strain.
Since the 1990s, both nations have taken steps to improve ties. Saudi Arabia has supported granting observer status
Observer status
Observer status is a privilege granted by some organizations to non-members to give them an ability to participate in the organization's activities. Observer status is often granted by intergovernmental organizations to non-member states and international nongovernmental organizations that have...
to India in the Organisation of Islamic Cooperation (OIC) and has expanded its cooperation with India to fight terrorism
Terrorism
Terrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...
. In January 2006, King Abdullah of Saudi Arabia
Abdullah of Saudi Arabia
Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005...
made a special visit to India, becoming the first Saudi monarch in 51 years to do so. The Saudi king and the Indian Prime Minister Manmohan Singh
Manmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...
signed an agreement forging a strategic energy partnership that was termed the "Delhi Declaration." The pact provides for a "reliable, stable and increased volume of crude oil supplies to India through long-term contracts." Both nations also agreed on joint ventures and the development of oil and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
in public and private sectors. An Indo-Saudi joint declaration in the Indian capital New Delhi
New Delhi
New Delhi is the capital city of India. It serves as the centre of the Government of India and the Government of the National Capital Territory of Delhi. New Delhi is situated within the metropolis of Delhi. It is one of the nine districts of Delhi Union Territory. The total area of the city is...
described the king's visit as "heralding a new era in India-Saudi Arabia relations."
Commerce
Since the 1990s, India's economic liberalisation has helped bolster trade with Saudi Arabia, which annually supplies to India nearly 175 million barrels (25 million metric tonnes) of crude oil, or a quarter of its needs. In 2006–07 bilateral trade stood at USDUnited States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
16 billion (USD 3 billion excluding oil) and is expected to double by 2010. India's current exports to Saudi Arabia stand at USD 2.6 billion, while Saudi Arabia's exports are in the range of USD 13.4 billion (USD 1.2 billion excluding oil). India's major exports include basmati rice, textiles and garments and machinery, while it imports organic and inorganic chemicals, metal scrap, leather, gold and oil from Saudi Arabia. Both nations are expected to expand trade and cooperation and joint ventures in telecommunications, pharmaceuticals, health services, information technology, biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
, agriculture, construction projects, energy and financial services. Both countries agreed to launch joint ventures for developing gas-based fertiliser plants in Saudi Arabia. India agreed to set up institutes of higher education and research, provide educational opportunities in India for Saudi Arabian students and expand cooperation between India's Council of Scientific and Industrial Research and the Saudi Arabian Standards Organisation (SASO).
India and Saudi trade was almost USD 25 billion last fiscal year with about 2 million Indians working in Saudi Arabia .
Bilateral investment
India and Saudi Arabia are developing countries and need two-sided flow of investment in infrastructure and development. Progressive growth has been observed between the countries in bilateral investment after the liberalization policy of India in 1991 and little bit faster increase in new millennium. Saudi Arabia is ranked at 15th position in country-wise FDI joint venture in India and it is second in Arab countries followed by UAE. Saudi has $21.55 million dollar worth value in FDI joint venture during 2004–05 to 2007–08. Saudi is also among the major FDI investing countries in India, it has invested 422.1 million INR during August 1991 to December 1999 and 690.71 million INR during January 2000 to August 2008. Investment is observed in diverse fields such as paper manufacture, chemicals, computer software, granite processing, industrial products and machinery, cement, metallurgical industries, etc.Indian firms also has shown the interest in Saudi market after new Saudi laws and established joint venture projects or wholly owned subsidiaries in the Kingdom. According to Saudi investment authority survey, India has 56 FDI projects having worth of 304 million SAR during 2005 in Saudi Arabia. These licenses are for projects in different sectors such as management and consultancy services, construction projects, telecommunications, information technology, pharmaceuticals, etc. Moreover, several Indian companies have established collaborations with Saudi companies and working in the Kingdom in the areas of designing, consultancy, financial services and software development.
2010 visit to Saudi Arabia by Manmohan Singh
Indian Prime Minister Manmohan SinghManmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...
undertook a three-day visit to Saudi Arabia beginning 27 February 2010. He was accompanied by his wife Gursharan Kaur, Health Minister Ghulam Nabi Azad, Commerce and Industry Minister Anand Sharma
Anand Sharma
Anand Sharma is the present Union Cabinet Minister for Commerce and Industry of the Government of India. He took charge after outgoing Minister Priyaranjan Dasmunsi fell into a critical condition due to a cardiac arrest. He was also given the portfolio for Ministry of Textiles on July 12 2011...
, Petroleum Minister Murli Deora
Murli Deora
Murli Deora was the Union Minister of Corporate Affairs Until 12 July 2011. He belongs to Deora Chauhan Rajput community.-Early life:He was born in Mumbai, and did his BA from Mumbai University.Native Place of Murli Deora is lakshmangahr...
and Minister of State for External Affairs Shashi Tharoor
Shashi Tharoor
Shashi Tharoor is an Indian politician and a Member of Parliament from the Thiruvananthapuram constituency in Kerala...
. It was the first visit to the kingdom by an Indian Prime Minister since 1982 and the third to date.
In a rare gesture, Dr. Singh and his official delegation were received at the royal terminal of the King Khalid International Airport
King Khalid International Airport
King Khalid International Airport is located north of Riyadh, Saudi Arabia, designed by the architectural firm HOK.The airport includes the terminals, mosque, the control tower and two parallel runways, each long...
by Crown Prince
Sultan, Crown Prince of Saudi Arabia
Prince Sultan bin Abdul-Aziz Al Saud "Sultan Al-Khair" was the crown prince of Saudi Arabia at the time of his death. He served as the First Deputy Prime Minister and Minister of Defense and Aviation. He was one of the Sudairi Seven. Sultan was first in the Saudi line of succession.-Early life...
Sultan bin Abdul Aziz accompanied by his entire cabinet. In departure from the protocol norms, a red carpet was rolled out to the Prime Minister. The nearly 40-km route from the airport to the city centre was lined with Indian and Saudi Arabian flags.
On the second day a formal reception was held in honour of the state guests. Singh was scheduled to address the Majlis-e-Shura
Consultative Assembly of Saudi Arabia
The Consultative Assembly of Saudi Arabia also known as Majlis as-Shura or Shura Council is the formal advisory body of Saudi Arabia, which is an absolute monarchy. It cannot pass or enforce laws, a power reserved for the King. The Consultative Assembly has limited powers in government, including...
, described as "a singular honour". Female diplomat Latha Reddy was permitted not to wear the abaya
Abaya
The abaya "cloak" , sometimes also called an aba, is a simple, loose over-garment, essentially a robe-like dress, worn by some women in parts of the Islamic world including in Turkey, North Africa and the Arabian Peninsula....
or the hijab
Hijab
The word "hijab" or "'" refers to both the head covering traditionally worn by Muslim women and modest Muslim styles of dress in general....
. This special allowance was described as "largely symbolic in nature, but it is a sign of the changing times".
During his visit Dr. Singh was conferred an honorary doctorate by Saudi Arabia’s prestigious King Saud University
King Saud University
King Saud University is a public university located in Riyadh, Saudi Arabia. It was founded in 1957 by King Saud bin Abdul Aziz as Riyadh University, as the first university in the kingdom not dedicated to religious subjects. The university was created to meet the shortage of skilled workers in...
. An MoU
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
for cooperation was signed between Indian Institute of Science
Indian Institute of Science
Indian Institute of Science is a research institution of higher learning located in Bangalore, India. It was established in 1909.-History:After a chance meeting between Jamsetji N...
, Bangalore and the King Saud University in the presence of the Prime Minister. Later, speaking at a community event at the Indian Embassy hosted by Indian Ambassador Talmeez Ahmed, the Prime Minister praised the contributions made by the over 1.8 million Indian citizens. “India is proud of you and proud of your achievements in this country,” he said.
An extradition treaty was signed by Indian Health and Family Welfare Minister Ghulam Nabi Azad
Ghulam Nabi Azad
Ghulam Nabi Azad is an Indian politician from the Indian National Congress and the current Minister of Health and Family Welfare of the Government of India....
and Prince Naif bin Abdul Aziz the Saudi Arabian Second Deputy Prime Minister and Interior Minister. Four agreements pertaining to transfer of sentenced persons, cultural cooperation, Memorandum of Understanding between Indian Space Research Organisation
Indian Space Research Organisation
The Indian Space Research Organisation is an independent Indian governmental agency established in 1969 for the research and development of vehicles and activities for the exploration of space within and outside of Earth’s atmosphere. Headquartered in Bangalore...
and King Abdulaziz City for Science and Technology for cooperation in peaceful use of outer space and joint research and information technology were also signed in presence of the two leaders. Four other agreements were also signed the day before, including one by Tata Motors
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
to supply school buses worth $80 million.
Dr. Singh returned home on 1 March 2010 concluding this 3-day visit. This visit is considered as India's attempt to increase the depth of relationships between the two countries and make a pitch for investments from Saudi Arabia.