Energy security top of agenda
Health and space among deals
Saudi Arabia and India have strengthened their trade partnership in the areas of energy, defence, tourism and culture following a visit by Indian prime minister Narendra Modi this week.
Energy sector agreements include plans for two new oil refineries in India and collaboration on petrochemicals, electricity, renewable energy and climate policy, Bloomberg reported.
The countries, which are already parties to a strategic partnership agreement, are also aiming to finalise a bilateral investment treaty.
Saudi Crown Prince Mohammed bin Salman and Modi met in Jeddah on Tuesday to discuss the initiatives. Saudi state-controlled oil giant Aramco has been holding talks to invest in Bharat Petroleum Corp’s (BPC) refinery planned in the southern state of Andhra Pradesh and a proposed Oil and Natural Gas Corp (ONGC) refinery in western Gujarat state, according to Reuters.
Modi was however forced to cut short his visit following a terrorist attack in India’s Jammu and Kashmir region.
Both countries are seeking economic stability as US tariff policies threaten growth. India faces its slowest economic expansion in four years, while Saudi Arabia anticipates pressure from lower oil prices.
The partnership promises greater energy security for both nations.
The countries agreed to enhance crude oil and LPG supply cooperation and collaborate on India’s strategic oil reserve programme. Modi said in an interview that the two countries were also working on feasibility studies for electricity grid interconnectivity.
They also signed agreements covering space activities and healthcare.
The Crown Prince had previously pledged $100 billion in investment to India, with about $10 billion realised so far.
To facilitate trade growth, both leaders committed to increasing business delegation visits and hosting investment summits.
The Riyadh agreement comes as India’s pivot toward discounted Russian crude oil has accelerated, eroding the dominance of traditional Middle Eastern suppliers.
Imports from Saudi Arabia – once India’s top supplier – dropped to a 14-year low as a result of higher official selling prices. Iraqi sales to India hit a four-year trough, reducing the Middle East’s overall share.
“Saudi Arabia will remain a close partner in our energy security,” Modi told Arab News during the visit to Jeddah.
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