Embassy of India
Riyadh

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India-Saudi Arabia: Economic and Commercial Brief

India and Saudi Arabia share centuries’ old economic and socio-cultural ties. Economic ties constitute a keynote aspect of the bilateral strategic partnership. The Delhi Declaration (signed in 2006 on the sidelines of H.M. King Abdullah’s visit to India) and Riyadh Declaration (signed in 2010 during the Prime Ministerial visit) boosted the energy cooperation between both countries. The Riyadh Declaration committed the two sides to a strategic partnership based on complementarity and interdependence. 

2. The landmark visits of Honorable Prime Minister Shri Narendra Modi to the Kingdom in 2016 and 2019 and the State visit of Crown Prince and Prime Minister HRH Prince Mohammad bin Salman to India in February, 2019 has marked a new era in the bilateral relations, which culminated in the setting up of the Strategic Partnership Council (SPC), co-chaired by the two leaders. In September 2023, both leaders’ co-chaired the first meeting of the Strategic Partnership Council during the State visit of Crown Prince and Prime Minister HRH Prince Mohammad bin Salman to India. These visits have seen the signing of multiple agreements in the areas of technology; pharmaceuticals; investment; energy; and several other areas of cooperation. There have been a number of ministerial visits from both sides on regular basis. A brief description of such visits from India to the Kingdom is included in Annexure I.  
3. Strategic Partnership Council (SPC) between India and Saudi Arabia covers various sectors of cooperation and provides the overall framework of the bilateral relationship. The SPC has two pillars: i) Political-Security-Socio-Cultural (PSSC); and ii) Economic and Investment. EAM and the Saudi Foreign Minister co-chair the Political-Security-Socio-Cultural (PSSC) pillar; whereas the Economic & Investment pillar is co-chaired by Commerce & Industry Minister on Indian side and Energy Minister on Saudi side. There are 8 JWGs under the two pillars which conduct regular official level meetings. The Economic and Investment pillar constitutes of 4 JWGs covering the following heads: Industry and Infrastructure; Agriculture and Food Security; IT and Technology; and Energy.
4. The first Summit meeting of the Strategic Partnership Council took place during the State visit of Crown Prince and Prime Minister of Kingdom of Saudi Arabia HRH Prince Mohammed Bin Salman on September 11, 2023. The meeting marked a new milestone in the India-Saudi bilateral ties and underlined the burgeoning commercial engagements. During this meeting, 8 MoUs were signed between both sides for cooperation in the fields of Energy, IT, Anti-corruption, Archives, Investments, EXIM banks, SME banks and Desalination. The first India-Saudi Investment Forum was organized on the sidelines of this visit which was co-chaired by Minister of Commerce and Industry, Shri. Piyush Goyal and the Saudi Minister of Investment, H.E. Khalid Al Falih. More than 50 MoUs (B2B and B2G) were signed during this Forum. Saudi Minister of Investment also announced that  Ministry of Investment would open an office in India. The India-Saudi Arabia startup bridge was launched by both Ministers. 
5. Trade: Saudi Arabia is India’s 5th largest trade partner and India is Saudi Arabia’s 2nd largest trade partner. During FY 2023-24, India’s imports from Saudi Arabia reached US $31.42 billion and exports to Saudi Arabia were worth US$ 11.56 billion. Total trade with Saudi Arabia accounted for 4.53% of India’s total trade in FY 2023-24.

(In US$)

 [Source: Dept. of Commerce, Govt. of India]

6. Major commodities of export from India to Saudi Arabia include engineering goods, rice, petroleum products, vehicles and associated equipment, chemicals, textiles, food products, gems & Jewellery; whereas, major commodities of import for India from Saudi Arabia are Crude oil, LPG, fertilizers, chemicals, plastic and products thereof etc.
   
   
7. Investments:

Indian investments in the Kingdom of Saudi Arabia:

• India’s investments in Saudi Arabia have increased in recent years and have reached approximately USD 3 Billion (August 2023). These investments are across diverse sectors such as management and consultancy services, construction projects, telecommunications, IT, financial services and software development, pharmaceuticals, etc. Major Indian companies and corporate groups such as L&T, TATA Motors, Wipro, TCS, Shapoorji & Pallonji, Tech Mahindra, Vedanta, Essar etc., have established a strong presence in the Kingdom.

• Among Indian Public Sector Companies, Telecommunications India Limited (TCIL) has been present in the Kingdom for four decades; and recently, Engineers India Limited (EIL) has set up their office in Al Khobar in joint venture with a local company. In October 2024, Rail Vikas Nigam Ltd. (RNVL), a Navratna PSU, has incorporated a new entity in Saudi Arabia, as COMPANY RAIL VIKAS NIGAM LTD. (ONE PARTNER). Several Indian companies like MAN Enterprise, Rashmi Metaliks etc. are also establishing their presence in the manufacturing sector in the Kingdom.

8. Saudi Investments in India:

       • The Saudi investments in India including that of PIF, other Saudi companies and Saudi backed Vision Fund, has been about USD 10 billion. Major investments include PIF’s investments in Reliance Jio Platforms (USD 1.5 billion to acquire a 2.32% stake) and Reliance Retail Ventures Limited (USD 1.3 billion to acquire a 2.04% stake). In 2020, the PIF - owned Saudi Agricultural & Livestock Investment Company (SALIC) has acquired a 30% stake in Daawat Foods Ltd. through its subsidiary United Farmers Investment Company, for a value of USD 17.23 million. In 2022, SALIC purchased a 9.2% stake in the India-based LT Foods Limited totaling USD 44 million. In July 2021, Elm, a company-owned by PIF, has invested in India-based health tech Healthifyme’s USD 75 million Series C funding round. 

       • Apart from PIF, major investment groups from the Kingdom include SABIC, AlFanar ZAMIL, Abdul Latif Jameel, Al Jomaih and Petromin. Al Fanar has invested approximately $700 million in wind and solar projects in Gujarat and Rajasthan. In 2021, AlFanar India was awarded two smart metering projects by the Madhya Pradesh DISCOMs (Bhopal and Jabalpur) for installation of around 2 million smart meters. SABIC has invested over $ 100 million in its technology and innovation Centre in Bengaluru. Saudi auto distributor Abdul Latif Jameel Co. has made a strategic investment of $150 million in India's Greaves Electric Mobility, the electric vehicle arm of the engineering firm Greaves Cotton. Petromin Corporation, a mobility solutions leader in KSA, in partnership with HPCL plans to set up around 1,000 vehicle service centres at the latter’s retail outlets in India. 

       •  The Future Investment Initiative (FII) organized by the FII Institute is the annual flagship event of the Kingdom of Saudi Arabia which sees the participation of global investors from across the world. In 2019, Honorable Prime Minister had delivered the Keynote address at the 3rd FII Summit. In 2023 and 2024, Hon’ble Minister of Commerce & Industry Shri Piyush Goyal address the 7th and 8th editions of the Summit. 

9. Sector-wise Collaboration: 

a.) Hydrocarbons: Saudi Arabia remained the 3rd largest Crude sourcing destination for India next to Russia and Iraq for FY 2023-24. India imported 33.35 MMT of crude oil in the financial year 2023-24, accounting for 14.3 % of its total crude imports. Crude oil Imports in Million Metric Tonne (MMT) from Saudi Arabia in the last few years are as follows:

Saudi Arabia was the 3rd largest LPG sourcing destination for India after Qatar & UAE accounting for 18.57% of the total LPG imports for 2023-24. LPG imports in Million Metric Tonne (MMT) from Saudi Arabia in the last few years are as follows:

b.) Energy: Vision 2030 of KSA and India’s Energy policy both look to transition from conventional sources to alternative renewable and clean sources of energy. Saudi Arabia is a member of International Solar Alliance (ISA). Saudi Arabia has launched Saudi Green Initiative and Middle East Green Initiative in 2022 to fulfill its commitments on energy transition. Furthermore, both countries are collaboratively exploring Hydrogen Energy as a future source of energy. Both countries have signed bilateral agreement in the area of grid inter-connectivity. 

c.) Automotive: The automotive sector is one of prominent exports from India to Saudi Arabia. India has permitted 100% FDI through automatic route in the auto industry and is one of the most active markets for this sector. India and KSA have numerous collaborative opportunities in terms of joint ventures, development of auto hubs, R & D etc. Indian companies like TATA Motors, Mahindra, Force Motors and Ashok Leyland are already present in KSA. Ashok Leyland has entered into a strategic partnership with Al-Futtaim Auto & Machinery Company in the passenger transport segment in the Kingdom.

d.) Textiles: India presents a host of opportunities of collaboration in this sector such as textile processing projects, integrated garment parks, investment in retail operations, technology transfer, skill development and commercialization of hand loom products. In 2023-24, India exported textiles and allied products to Saudi Arabia worth $ 549.77 Million. In February 2025, prominent Saudi companies participated in the BHARAT Tex 2025 held in New Delhi.

e.) Agriculture : Saudi Arabia and India are enhancing collaboration in the area of agriculture and food-security. The bilateral trade in agricultural products including Basmati Rice, Meat, Sugar, Seafood, etc., has been consistently increasing in the last few years. In 2020, the PIF - owned Saudi Agricultural & Livestock Investment Company (SALIC) has acquired a 30% stake in Daawat Foods Ltd. through its subsidiary United Farmers Investment Company, for a value of $17.23 million. In 2022, SALIC purchased a 9.2% stake in the India-based LT Foods Limited totaling $44 million. Multiple Indian delegations have been participating in Saudi Food exhibitions including Saudi HORECA, Saudi Food Show, FoodEx etc. Similarly, several Saudi companies, Saudi Food and Drug Authority (SFDA) and Saudi Export Development Authority have also participated in the World Food India and Anuga Select India in the previous years.

f.) Pharmaceuticals: The Kingdom of Saudi Arabia is a major importer of pharmaceuticals with an estimated market size of approximately $7-8 billion. It is the largest regional market for pharmaceuticals and vaccines. In January 2024, Saudi Arabia announced the launch of the National Biotechnology Strategy as part of Saudi Vision 2030 which aims to develop the Kingdom as a hub for vaccine manufacturing and bio-manufacturing. India and Saudi Arabia have signed an MOU in 2019 for Cooperation in the Field of Medical Products Regulations. COVID-19 phase provided an opportunity to enhance cooperation in this sector during which both nations supported each by supplying vaccines and other medical products. 

Indian pharmaceutical companies such as Venus Remedies, MSN Lab, Aurbindo Pharma, Hetero Pharma and Glenmark Pharmaceuticals, etc. are already making some notable progress in the Kingdom. India’s pharmaceutical exports currently account for approximately 3-4 percent in the Saudi pharmaceutical market. The CEO of Saudi Food and Drug Authority visited India in November 2023 and had business meeting with leading Indian pharma companies and associations, including Indian Pharmaceutical Association (IPA), Pharmexcil etc. The CEO also attended the International Conference of Drug Regulatory Authorities held in New Delhi in October 2024 and met with HCIM on the sidelines. In August 2024, the Embassy of India in coordination with SFDA held a virtual Workshop for Indian pharma companies about the various regulatory and other relevant guidelines required for doing business in Saudi Arabia. 

g.) Technology: There is great scope for bilateral collaboration in the emerging technologies such as AI, Robotics, Cyber-security and Automation that constitutes a keystone of Saudi Arabia’s ‘Vision 2030’. All major Indian technology services companies have a strong presence in the Saudi market. Saudi Arabia is making heavy investments in areas such as Artificial Intelligence. TCS recently celebrated the 10th anniversary of its ‘All Women Digital Services Center’ in Riyadh which was set up in 2014. WIPRO, Tech Mahindra, HCL are other companies in KSA working with Saudi Government and private sector entities. 

LEAP Tech is the annual flagship event of the Kingdom in the technology sector. Large number of Indian companies are participating annually in this event including under the umbrella of NASSCOM and Electronics and Computer Software Export Promotion Council (ESC). ACES, Saudi Arabia’s leading International Neutral Digital Infrastructure company, signed a contract with Mumbai Metsalic stake in dawat foodro Railways Corporation (MMRC) Ltd. in Riyadh at LEAP-2024 for providing Mobile Infrastructure Services. The Indian delegation led by Data Security Council of India (DSCI) participated in the Black Hat MEA held in Riyadh in November 2024 showcasing the innovations of Cyber Security products and services companies, highlighting their cutting-edge solutions. Many Indian startups in the area of Cyber Security, Deep-tech and AI are also exploring opportunities in the Saudi market. 

h.) Defense: Defense is an area of deepening cooperation between India and Saudi Arabia. A number of Indian companies in the defense sector participated in the the World Defense Show held in Riyadh in February 2024, during which Munitions India Limited signed a contract worth $ 225 Million for supply of artillery ammunition to Saudi Arabia through its partner, Nadrah Company. On 28 November 2024, a seminar on the India–Saudi Defence Industry was organized by the Society of Indian Defence Manufacturers (SIDM) in Riyadh. The seminar aimed to strengthen defense cooperation and expand business opportunities for the Indian defence industry in Saudi Arabia and saw participation of Indian defense companies, representatives from Ministry of Defence, Saudi Ministry of Defence and General Authority for Military Industries, Saudi Arabia. 

i.) New Thrust Areas of Cooperation: In order to realize the full potential of their commercial relations in multitude and magnitude the India and Saudi Arabia are now emphasizing on diversification of bilateral trade ties beyond the conventional field of oil and explore opportunities in  areas such as defence, housing, tourism, renewable energy, health, entertainment, data centers, startups. 

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March 2025

Annexure I: Recent Ministerial Visits: