Deepening ties: India's bilateral trade with Riyadh at all-time high

INDIA'S trade outreach is fast becoming the centrepiece of its deepening relationship with the Middle East. In particular, India's relations with Saudi Arabia have seen an unprecedented growth in recent years, with a sharp rise in trade and investments. Saudi Arabia's abundance of natural resources, economic and cultural influence, its critical location in the Middle East and connectivity complement India's capability to provide cost-effective technologies, human resources, capital and marketing opportunities. India's growing economy, digital public infrastructure and institutional stability have made it a preferred trade and investment destination.

- RAKESH MOHAN JOSHI

Saudi Arabia is pursuing an economic diversification strategy beyond hydrocarbons to newer domains exploring innovative investment tools and new collaborations from across the world. India was the fourth country after the UK, France and China to partner with the Saudis to establish a strategic partnership council in 2019. It is aimed at taking forward collaborations on economy and investments, apart from social, political and security issues.

Saudi Arabia contributes to India's energy security and India supports Saudi Arabia's food security. India imports 86 percent of its oil requirement and the Middle East accounts for over 60 percent of it. On the other hand, Saudi Arabia imports large parts of its food needs and manufactured goods including textiles. Therefore, the bilateral relationship is highly symbiotic.