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 enjoy cordial and friendly relations reflecting old economic and socio-cultural ties. During FY25, India’s imports from Saudi Arabia were valued at US$ 30.12 billion and exports to Saudi Arabia were worth US$ 11.75 billion. Major export from India to Saudi Arabia includes rice, petroleum products, chemicals, and aircrafts.
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 (till November 2025), bilateral trade between India and Saudi Arabia stood at around US$ 27.18 billion.
- Saudi Arabia occupies the 20th position in FDI equity inflows into India with a cumulative FDI amount of US$ 3.29 billion from April 2000-September 2025.
- In FY26, Saudi Arabia accounted for 2.32% of India’s total exports and 3.96% 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$ 6.76 billion in FY26 (till November 2025).
- India exported 5,334 commodities to Saudi Arabia in FY26 (till November 2025).
- Major exported items from India to Saudi Arabia include vehicles and auto components (US$ 1.12 billion), cereals (US$ 680.12 million), machinery and mechanical appliances (US$ 622.64 million), organic chemicals (US$ 544.92 million), copper and articles (US$ 521.78 million), electrical machinery and equipment (US$ 341.41 million), articles of iron or steel (US$ 269.31 million), meat and edible meat offal (US$ 219.34 million), and pearls and precious or semi-precious stones (US$ 202.62 million), etc. during FY26 (till November 2025).
Major imports by India from Saudi Arabia
- India’s imports from Saudi Arabia stood at US$ 20.42 billion in FY26 (till November 2025).
- India imported 850 commodities from Saudi Arabia in FY26 (till November 2025).
- Major items imported by India from Saudi Arabia include petroleum crude (US$ 14.42 billion), fertilisers (US$ 2.14 billion), organic chemicals (US$ 910.27 million), plastics and articles (US$ 773.31 million), pearls and precious or semi-precious stones (US$ 617.33 million), copper and articles (US$ 336.71 million), aluminium and articles thereof (US$ 291.61 million), and inorganic chemicals (US$ 259.14 million), etc. during FY26 (till November 2025).
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 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
Partners
