India-Saudi Arabia Relations – Bilateral Trade Reaches USD 56 Billion in 2022

21 September 2023

Key Takeaways

              ·         India-Saudi Arabia bilateral trade reached 56 billion in 2022.

              ·         The India-Middle East-Europe Economic Corridor is crucial for both countries.

              ·         India and Saudi Arabia signed eight agreements to boost trade cooperation.

India and Saudi Arabia enjoy cordial and friendly relations reflecting the centuries-old economic and socio-cultural ties. At the recently held G20 Summit, the India-Middle East-Europe Corridor was launched to boost trade among India, and Middle Eastern countries including Saudi Arabia, European nations, and the United States of America. India and Saudi Arabia also discussed the possibility of trading in local currencies and expediting the negotiations for a free trade agreement between India and the Gulf Cooperation Council of which Saudi Arabia is a member.

India and Saudi Arabia signed agreements to boost cooperation in a range of areas – from energy to interconnectivity, digitalization, and electronic manufacturing to finance and security. For India, Saudi Arabia is among the most important strategic partners and the world’s two largest and fastest-growing economies.

The agreements include cooperation between India’s Central Vigilance Commission and Saudi’s anti-corruption unit, between investment entities, small and medium enterprises banks, between the National Archives of the two countries, and on desalination and renewable energy.  

India-Saudi Arabia Trade 2023

India-Saudi Arabia trade from January to July 2023 stood at USD 31.4 billion with India’s imports from Saudi Arabia recorded higher than India’s exports to the country. According to a report, India reported a decline in the imports of goods from Saudi Arabia in all months of 2023. Here is a full picture of the total trade between India and Saudi Arabia during the Jan-Jul 2023 period.

India-Saudi Arabia Bilateral Trade 2018-2022

India-Saudi Arabia trade in 2022 increased and reached USD 56.3 billion as compared to the previous years, thanks to the higher number of shipments reaching India from Saudi Arabia. India’s imports from Saudi Arabia totaled USD 46.1 billion in 2022 and exports to Saudi Arabia totaled USD 10.1 billion. This year, India’s trade with Saudi Arabia has already reached USD 31.4 billion which is further likely to increase in the coming months after both countries agreed to boost cooperation in various industries in the sidelines of the G20 Summit.

Saudi Arabia holds a pivotal position among India’s strategic partners in the Middle East. In recent years, bilateral trade relations between the countries have witnessed a noteworthy upswing, with a particular focus on strengthening defence and security cooperation. Saudi Arabian companies look to invest in various sectors in India, including pharmaceuticals, aviation, renewable energy, bulk drugs, food processing, and agriculture technology.  Saudi Arabian companies have already invested in India’s wind and solar energy sectors.

India’s Top Exports to Saudi Arabia 2022

India’s top exports to Saudi Arabia in 2022 were mineral fuels & oils, organic chemicals, cereals, vehicles other than railway or tramway, machinery, mechanical appliances, etc., electrical machinery & equipment, sugar, and iron & steel. The given chart shows the values of these export categories.

India’s Top Imports from Saudi Arabia 2022

India’s top imports from Saudi Arabia in 2022 were mineral fuels & oils, fertilisers, organic chemicals, plastics & articles, inorganic chemicals, aluminium & articles, and miscellaneous chemical products. Look at the chart to analyze values of these import categories.

Saudi Arabia is one of India’s most significant strategic partners, and both countries are actively enhancing their relationship to align with the evolving times. The India-Saudi Arabia Strategic Partnership Council was built in 2019 and serves as a platform to further intensify collaboration across critical domains. At the conclusion of the G20 Summit, both countries underscored their commitment to nurturing this vital partnership.