Indian Prime Minister Narendra Modi is set to kick off a two-day trip to Saudi Arabia on Tuesday as he seeks to deepen ties with the major oil exporter and OPEC+ leader at a time of mounting global trade uncertainty.
Modi is traveling to Jeddah on the kingdom’s Red Sea coast, where he will meet with Saudi Crown Prince Mohammed bin Salman, hold bilateral talks and visit Indian factory workers.
Both countries may benefit from deeper ties, as sweeping US tariffs that have rattled global markets encourage countries to strengthen trade relations with allies and neighbors. India and Saudi Arabia already count one another as top-five trading partners, with about $43 billion in flows in 2023-2024.
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The two leaders are expected to discuss defense, trade and energy, with the latter taking on increasing importance as India pushes to become a top refining hub. Modi may be looking to secure investments after the crown prince, known as MBS, vowed in 2019 to put $100 billion to work in the Asian nation.
Developments on deeper energy ties are expected from Modi’s visit, as are several memoranda of understanding, India’s foreign secretary said before the trip, without giving details.
“We are looking at infusing an even more strategic outlook in the energy partnership between the two countries,” Shri Vikram Misri said in a briefing on April 19.
India is already a leading recipient of Saudi crude, and state-backed energy giant Saudi Aramco has long voiced interest in investing in the country. The company came close to an investment in 2019 through a partnership with Reliance Industries Ltd. but the deal ultimately fell apart two years later.
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Since then, there have been reports that Aramco is considering buying stakes in pla6nned Indian refineries but little indication of other major oil investments. Any firm commitments would likely signal a win for both as Saudi Arabia looks to lock in long-term buyers of its oil while India seeks to build and feed large refineries that process crude into fuels like gasoline.
joint projects
Ahead of the visit, Modi said energy cooperation isn’t limited to a mere buyer-seller relationship and that the two sides are exploring joint projects in refineries and petrochemicals, according to comments he made to Arab News.
The countries are also working on a bilateral investment treaty and promoting more interconnectivity under the India-Middle East-Europe Economic Corridor, he added.
“India values our historic relations with Saudi Arabia,” the prime minister said in a post on X on Tuesday. “Bilateral ties have gained significant momentum in the last decide.”
Saudi Arabia’s investments in India total about $10 billion, according to India’s embassy in Riyadh. That includes stakes the Saudi sovereign wealth fund, known as the PIF, has taken in Reliance subsidiaries.
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Modi’s trip to Saudi Arabia will be his first in six years, and follows a visit by MBS to India in September 2023. The two leaders are set to co-chair a meeting to help steer bilateral relations, in addition to holding a one-on-one session.
Discussions around investment in renewable energy, healthcare services, tourism and entertainment — described by the foreign ministry as relatively new areas for collaboration — may also be on the table during the summit, along with talks on how Indian firms can support the development of mega-infrastructure in Saudi Arabia.
The kingdom awarded about $148 billion in contracts in 2024, pressing ahead with massive projects designed to help diversify the economy away from oil, according to the Middle East business intelligence media known as MEED. That’s the highest total ever recorded by a single country in the Gulf region, it said.
