Indian Prime Minister Narendra Modi arrived in Jeddah on a two-day trip to Saudi Arabia to strengthen bilateral ties, with a focus on energy, trade, and defense. His visit comes at a time when global trade faces uncertainty due to rising tariffs and geopolitical shifts, making alliances more crucial than ever.
Saudi Arabia is already one of India’s top five trading partners, with a bilateral trade volume of around $43 billion in 2023-24. During this visit, Modi is expected to deepen energy cooperation and secure new investments from Saudi Crown Prince Mohammed bin Salman (MBS), who had previously pledged to invest $100 billion in India.
Why It Matters:
- Energy Diplomacy: Saudi Arabia is India’s second-largest supplier of crude oil. India, aiming to become a global refining hub, seeks long-term crude supply contracts and potential Aramco investments in Indian refinery projects.
- Strategic Investments: The crown prince’s Public Investment Fund (PIF) already holds stakes in Indian firms. More deals and MoUs are expected, especially in renewable energy, petrochemicals, and mega infrastructure projects.
- Geo-economic Alliances: With the backdrop of rising US tariffs, India and Saudi Arabia are exploring stronger trade alliances and a potential bilateral investment treaty. Both countries are also working on the India-Middle East-Europe Economic Corridor.
- Workforce and Diaspora: Modi will also meet Indian factory workers in Jeddah, highlighting the significance of the large Indian diaspora in the kingdom.
Context: This is Modi’s first visit to Saudi Arabia in six years, following MBS’ visit to India in 2023. Saudi Arabia is also emerging as the Gulf’s biggest construction market, awarding a record $148 billion in contracts in 2024—a potential goldmine for Indian infrastructure and service firms.
Verdict: True. Modi’s Saudi visit is real and focused on boosting bilateral ties in energy, trade, and infrastructure.