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Search 20th February, 2019 Spotlight here: http://www.newsonair.com/Audio-Archive-Search.aspx
TOPIC: General studies 2:
- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
- Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora
During the Cold War the relations between India and Saudi Arabia were largely shaped by the Pakistan factor which in turn inhibited both sides from exploring the importance and value of one another. As a result, the relations were largely transactional and marginal.
The end of the Cold War coincided with two interesting developments, namely, significant growth in India’s economic power and influence and the de-hyphenation of Pakistan from its Middle East policy. This resulted in greater political engagements between India and Saudi Arabia and was strengthened by the growing energy trade ties.
Saudi Arabia is a unique country at least in two specific details –
Trade has been the dominant factor in India's relationship with Saudi Arabia, with the import of oil being a major component. In 2013 India had already become the third largest energy consumer in the world. Such a condition has always directed India to the Middle East, which is both geographically close and strategically important.
India views Saudi Arabia as a country with which it can forge security ties in order to deal with terrorism, piracy and criminal elements. Diplomatically, it could be a gateway for India into the wider Arab and Islamic world. In recent years, Saudi Arabia has reciprocated India's initiatives relating to issues of mutual interest. India’s Saudi policy, however, face many challenges most importantly the regional instability, the Iran factor, low oil price and the international dynamics. Although some hurdles remain, it is time for both countries to work towards building a strong strategic partnership.
India and Saudi Arabia have more opportunities today to tap into than ever before.
Trade Story
The bilateral trade for 2017-18, in excess of $27 billion, will accelerate as Saudi Arabia and India engage in a host of new areas such as information and communications technology (ICT), health care, defence, biotechnology, education and infrastructure among others. India is one of the top countries on the Kingdom’s preferred list with great potential for investment in organic and food processing industries.
Energy partnership
As of October 2018, Saudi Aramco has nearly $2 billion in material-service sourcing with Indian companies, and investing in India’s value chain from oil supply, marketing and refining to petrochemicals and lubricants is a key part of its global downstream strategy. The $44 billion integrated refinery and petrochemicals complex at Ratnagiri in Maharashtra, being jointly developed by Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and a consortium of Indian public sector units (PSUs) consisting of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), is yet another milestone.
The Saudi-India-Pakistan triangle
The Saudi Foreign Minister’s statement in Islamabad during MBS’s visit that Riyadh is committed to “de-escalating” tensions between India and Pakistan over Kashmir must not be read as an endorsement of the Indian stand but as an attempt to intervene in the dispute rather than accept its bilateral nature. New Delhi should, therefore, not be overly optimistic that growing Saudi-Indian relations in the economic sphere will succeed in prying Riyadh away from Islamabad.
One of the most important pillars for India’s great power aspiration is widened strategic influence. New Delhi has to increase the bandwidth of its foreign policy and find more areas of mutual interest and strategic convergence in the Middle East without disrupting the balance it has created in the region in terms of both bilateral and multilateral engagements.
Connecting the Dots: