India and Saudi Arabia fast-track Bilateral Investment Treaty negotiations

On April 22, 2023, Indian Prime Minister Narendra Modi visited Saudi Arabia, marking a pivotal moment aimed at strengthening bilateral ties between the two nations. During this visit, India and Saudi Arabia took significant strides towards enhancing economic cooperation, particularly focusing on establishing a Bilateral Investment Treaty. Both countries recognized the importance of facilitating Saudi investments in India with the introduction of an India Desk at the Saudi Public Investment Fund. The two leaders reaffirmed their commitment to collaborate in various sectors, including defense, energy, and health. In addition to economic matters, defense cooperation also emerged as a critical focus of the discussions. The countries announced the establishment of a Ministerial Committee on Defence Cooperation and highlighted the success of recent joint military exercises. Furthermore, they jointly condemned terrorism, including a recent terror attack in Pahalgam, Jammu and Kashmir, emphasizing their shared commitment to counter-terrorism efforts. Health cooperation saw expansions through new Memorandums of Understanding, targeting areas such as antimicrobial resistance and regulation of medical products. The meeting also reiterated the commitment to ongoing climate action, particularly through initiatives like the Saudi Green Initiative, aligned with India's global leadership in sustainable development. The leaders discussed the transition towards clean energy sources, further committing to collaboration across various energy sectors, which include traditional oil, renewables, and green hydrogen. Moreover, they expressed intentions to enhance economic connectivity, especially relating to the India-Middle East-Europe Economic Corridor, which aims to improve infrastructure and trade linkages. Ultimately, this visit by Prime Minister Modi not only served to solidify the economic relationship but also reflected a maturing partnership built on mutual interests and shared goals. The two countries acknowledged their positions in each other's economies, where India stands as Saudi Arabia’s second-largest trading partner, while Saudi Arabia is India’s fifth-largest. This evolving relationship showcases a comprehensive approach to bilateral cooperation, intending to foster shared prosperity and stability in the region over the coming years.