India Saudi Arabia Trade
Saudi Arabia is India’s 4th largest trading partner and more than 18% of India’s crude oil imports are sourced from Saudi Arabia.
Introduction
India and Saudi Arabia recently held high-level security dialogues, reaffirming strong cooperation against terrorism and reinforcing mutual strategic partnership. Both nations reviewed counter-terrorism strategies and committed to deeper collaboration to tackle emerging security challenges, reflecting growing trust and shared regional interests.
India and Saudi Arabia share strong bilateral relations underpinned by longstanding economic, strategic and socio-cultural ties. Saudi Arabia is among India's key trading partners, with major exports including rice, petroleum products, chemicals, and aircraft.
India-Saudi Arabia Trade
- Saudi Arabia ranked as India’s 9th largest export destination and the 5th largest source of imports during FY26, underscoring its significance as a key trading partner for India.
- In FY26, bilateral trade between India and Saudi Arabia stood at around US$ 41.07 billion.
- Saudi Arabia occupies the 20th position in FDI equity inflows into India with a cumulative FDI amount of US$ 3.31 billion from April 2000-March 2026.
- In FY26, Saudi Arabia accounted for 2.33% of India’s total exports and 3.97% of India’s total imports, underscoring its importance in India’s external trade structure.
- Saudi Arabia plays an important role in India’s energy security while India is a vital partner in Saudi Arabia’s food security.
Major exports from India to Saudi Arabia
- India’s export to Saudi Arabia stood at US$ 10.28 billion in FY26.
- India exported 5,808 commodities to Saudi Arabia in FY26.
- Major items exported by India to Saudi Arabia included engineering goods (US$ 4.89 billion), followed by organic and inorganic chemicals (US$ 1.09 billion), rice (US$ 1.07 billion), meat, dairy and poultry products (US$ 434.50 million), readymade garments of all textiles (US$ 394.08 million), electronic goods (US$ 308.85 million), gems and jewellery (US$ 244.06 million), spices (US$ 205.48 million), and others (US$ 328.64 million) during FY26.
Major imports by India from Saudi Arabia
- India’s imports from Saudi Arabia stood at US$ 30.79 billion in FY26.
- India imported 1,069 commodities from Saudi Arabia in FY26.
- Major items imported by India from Saudi Arabia included petroleum, crude and products (US$ 21.77 billion), followed by fertilisers, crude and manufactured (US$ 2.40 billion), organic and inorganic chemicals (US$ 1.33 billion), artificial resins, plastic materials and related products (US$ 1.12 billion), non-ferrous metals (US$ 1.05 billion), gold (US$ 989.67 million), transport equipment (US$ 961.10 million), chemical materials and products (US$ 298.53 million), and dyeing, tanning and colouring materials (US$ 278.89 million) during FY26.
Economic Relations and Investments
- India and Saudi Arabia are advancing negotiations to conclude a Bilateral Investment Treaty (BIT) to facilitate increased investment flows and provide a strong legal framework for investors from both sides. During high-level engagements, both countries reaffirmed their intention to expedite conclusion of the BIT, underlining a mutual commitment to unlock robust two-way investments and deepen cooperation in key economic areas.
- Diplomatic and economic leaders from India and Saudi Arabia have held focused discussions on investment opportunities and economic integration, with senior officials emphasizing shared interest in expanding mutual investments and enhancing bilateral collaborations. These discussions reflected the longstanding friendly ties and the strategic priority given to economic relations by both nations.
- Indian businesses have signaled strong interest in expanding trade and investment in Saudi Arabia. According to HSBC New Networks of Capital: Saudi Arabia report, a substantial majority of Indian business leaders view Saudi Arabia as a reliable destination for trade and investment, with many planning to increase their investment commitments in the coming years. This reflects confidence in Saudi Arabia’s economic stability, growth prospects, and business-friendly environment aligned with Vision 2030, which presents new avenues for cooperation in sectors such as infrastructure, energy, digital transformation, and logistics.
- In a landmark diplomatic step to further enable official interactions and cooperation, India and Saudi Arabia signed a mutual visa exemption pact for diplomatic and official passport holders. This agreement enhances mobility for government officials and delegates, thereby facilitating smoother dialogue and engagement on bilateral economic and strategic issues.
- India and Saudi Arabia have also taken steps to strengthen maritime and logistics cooperation by establishing a joint working group on shipping and logistics infrastructure. This initiative, emerging from ministerial discussions, aims to boost connectivity, explore investment opportunities in port infrastructure, and support sustainable shipping and trade solutions. It complements the broader Strategic Partnership Council framework for enhancing economic linkages and aligns with both countries’ visions for port-led growth and supply chain transformation.
Recent Trends & developments
- On June 29, 2026, India and Saudi Arabia signed a Memorandum of Understanding (MoU) to strengthen cooperation in water resources during Saudi Water Week in Jeddah. The agreement aims to enhance collaboration in sustainable water management, irrigation, capacity building, technical expertise exchange, and long-term water security, further deepening the India–Saudi Arabia strategic partnership.
- On December 19, 2025, India and Saudi Arabia signed a mutual visa exemption pact for diplomatic and official passport holders, facilitating smoother official travel and enabling more frequent high-level engagements, reflecting growing trust and deeper diplomatic cooperation.
- On November 13, 2025, senior government officials from India and Saudi Arabia reaffirmed their commitment to early conclusion of a bilateral investment treaty to unlock robust two-way investment and further deepen economic cooperation.
- On November 13, 2025, a report noted that Indian businesses are increasingly keen to expand trade and investment in Saudi Arabia, with a majority viewing the Kingdom as an attractive and stable destination for future investments, aligned with Saudi’s Vision 2030 and bilateral trade growth.
- On October 6, 2025, discussions between India’s Ambassador to Saudi Arabia and Saudi Arabia’s Minister of Investment focused on expanding mutual investment opportunities and economic integration, signalling stronger economic cooperation and support for Indian companies establishing a presence in the Kingdom.
- On September 20, 2025, India highlighted that its India-Saudi Arabia strategic partnership has deepened considerably in recent years and underscored the expectation that this partnership will consider mutual interests and sensitivities, reflecting sustained strategic engagement between the two countries.
- On August 20, 2025, India and Saudi Arabia agreed to deepen maritime relations by forming a Joint Working Group on maritime cooperation in shipping and logistics, aimed at enhancing strategic ties and exploring investment opportunities in port and shipping infrastructure aligned with both nations’ long-term visions.
- On April 23, 2025, during Prime Minister Mr. Narendra Modi’s state visit to Saudi Arabia, both countries expressed their intention to conclude Bilateral Investment Treaty negotiations soon, highlighting a shared commitment to facilitate greater investment flows across sectors including infrastructure, petrochemicals, digital infrastructure, and healthcare.
- Saudi Arabia reaffirmed its commitment on April 22, 2025, to invest US$ 100 billion in India across sectors such as energy, petrochemicals, infrastructure, technology, fintech, telecommunications, pharmaceuticals, manufacturing and health.
- On the same day, the SPC structure was expanded to include four committees:
- Political, Consular and Security Cooperation
- Economy, Energy, Investment and Technology
- Defence Cooperation – newly formed to enhance military collaboration and defence-industrial engagement
- Tourism and Cultural Cooperation – newly formed to promote cultural exchange and people-to-people linkages
- Discussions held on April 22, 2025, included collaboration to establish two new oil refineries in India, aimed at strengthening long-term energy partnership between the two countries.
- Significant progress was achieved on April 22, 2025, in addressing bilateral taxation issues, which will help facilitate smooth investment flows from Saudi Arabia into Indian sectors.
- On April 22, 2025, several important MoUs and agreements were signed:
- Between the Indian Department of Space and Saudi Space Agency for cooperation in peaceful uses of outer space
- Between the Ministries of Health of both nations for strengthening healthcare collaboration
- Between the National Anti-Doping Agency (India) and the Saudi Arabian Anti-Doping Committee to promote education and awareness
- Between India Post and Saudi Post Corporation for cooperation on inward surface parcel services
- An inter-ministerial delegation, led by the Minister of Minority Affairs, visited Saudi Arabia and signed a bilateral agreement, finalizing a Hajj 2024 quota of 175,025 pilgrims from India, with 140,020 seats reserved for pilgrims through the Haj Committee, benefiting first-time pilgrims.
- In August 2023, an official Memorandum of Cooperation (MoC) was established between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Communications and Information Technology of the Kingdom of Saudi Arabia, focusing on collaboration within the realms of Digitization and Electronic Manufacturing.
- India’s interests in West Asia are mainly due to the presence of a large Indian Diaspora and energy security. Saudi Arabia’s strategic location in West Asia and the political and economic power that it leverages alongside global oil reserves makes it an important partner for India. Given India’s growing energy demands, the two sides have focused on the continuation of the India-Saudi Arabia energy consultations and investment and joint ventures in petrochemical complexes.
- India and Saudi Arabia are recently in talks to sign a Mutual Legal Assistance Treaty (MLAT) to obtain formal assistance from each other in investigations related to criminal cases.
- External Affairs Minister Mr. S. Jaishankar held a meeting with the Gulf Cooperation Council (GCC) Secretary-General, Mr. Nayef Falah Mubarak Al-Hajraf during which the two leaders signed an MoU on the mechanism of consultations between India and the six-nation regional bloc.
- On August 25, 2022, Samvardhana Motherson International Limited (SAMIL) signed a Memorandum of Understanding (MoU) with the Ministry of Investment, Kingdom of Saudi Arabia (MISA). The partnership aims to identify investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA). The MoU will encourage joint cooperation by SAMIL and MISA in the development of the automotive parts industry in the Kingdom of Saudi Arabia (KSA).
Conclusion
India-Saudi ties continue strengthening with expanding diplomatic engagement and strategic cooperation. New agreements easing official travel and robust security talks underline mutual commitment to partnership growth, signaling a positive trajectory in bilateral relations rooted in shared goals of peace, stability, and enhanced collaboration across sectors.
The two countries hold bilateral engagements in sectors like defence, investments, strategy, security, science and technology, and education alongside trade, energy, and diaspora factors. To realize the full potential of their commercial relations in multitude and magnitude, the two countries are now focusing on the diversification of bilateral trade ties beyond the conventional field of oil. The aim is to explore opportunities in novel areas such as tourism, renewable energy, housing, health, entertainment, etc.
Contacts
- Embassy of India, Saudi Arabia
Address: B-1, Diplomatic Quarter, P.O.Box No. 94387, Riyadh- 11693, Saudi Arabia
Telephone Number: +966-11-4884144
Officials
Ambassador - Dr. Suhel Ajaz Khan;
Email: amb.riyadh@mea.gov.in
Deputy Chief of Mission - Mr. Abu Mathen George;
Email: dcm.riyadh@mea.gov.in - Embassy of Saudi Arabia, India
Address: EP 30, Chandragupta Marg, Chanakyapuri, New Delhi, Delhi 110021
Telephone: +91-11-2410 2000,
Email: inemb@mofa.gov.sa
Officials
Ambassador - Mr. Haitham Hassan Al- Maliki
FAQs
India exports to Saudi Arabia are led by engineering goods (US$ 4.89 billion), followed by chemicals (US$ 1.09 billion), rice (US$ 1.07 billion), meat, dairy and poultry products, textiles, electronics, gems and jewellery, and spices. This diversified basket highlights the breadth of India Saudi Arabia trade beyond energy.
India Saudi Arabia trade has strengthened as the two economies deepen cooperation in energy, investment, infrastructure and manufacturing. Bilateral trade between India and Saudi Arabia reached around US$ 41.07 billion in FY26, while Saudi Arabia has also committed to expanding investments across several sectors in India.
The India Saudi Arabia economic partnership is driven by energy, petrochemicals, engineering, food, infrastructure, logistics, digital technology, healthcare, pharmaceuticals and manufacturing. Cooperation is increasingly extending into space, telecommunications, fintech and advanced industrial activities, supporting diversification beyond traditional oil trade.
Saudi Arabia offers significant trade opportunities between India and Saudi Arabia through its Vision 2030-driven expansion in infrastructure, logistics, digital transformation, healthcare, manufacturing and tourism. Indian businesses can also benefit from the Kingdom's growing demand for food products, engineering goods, pharmaceuticals and industrial inputs.
Strong Saudi Arabia imports from India include engineering products, chemicals, rice, meat and dairy products, textiles, electronics, jewellery and spices. Food exports are particularly significant because India's export strengths complement Saudi Arabia's focus on food security, while engineering and industrial products support its expanding economy.
India Saudi Arabia trade relations are supported by the Strategic Partnership Council, investment discussions, the proposed Bilateral Investment Treaty, and sector-specific cooperation. The two countries are also strengthening shipping and logistics links through a joint working group, while improved official mobility is facilitating closer government and business engagement.
Future trade opportunities between India and Saudi Arabia are emerging in renewable energy, digital infrastructure, pharmaceuticals, healthcare, logistics, electronics manufacturing, space technologies, petrochemicals and advanced manufacturing. Saudi Arabia's Vision 2030 and its commitment to invest US$ 100 billion in India provide additional scope for cross-border business and supply-chain partnerships.
The growth of India Saudi Arabia trade is supported by complementary economic strengths: Saudi Arabia is a major energy supplier to India, while India contributes to Saudi food security through agricultural and food exports. Expanding investment, logistics cooperation, Vision 2030, and efforts to diversify economic ties are further strengthening the India Saudi Arabia economic partnership.
Indian businesses can strengthen India exports to Saudi Arabia by targeting Vision 2030 priorities, developing local partnerships, and participating in sectors such as infrastructure, logistics, healthcare, digital technology, manufacturing and food processing. Stronger shipping connectivity and growing investment flows can further support market entry and regional expansion.
Emerging export potential lies in digital and electronic manufacturing, medical and healthcare products, renewable-energy solutions, advanced engineering equipment, space technologies, logistics solutions and specialised industrial products. Cooperation in these areas can help diversify India Saudi Arabia trade beyond conventional oil and food-linked commerce.
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