2 June 2020, NIICE Commentary 5186
Anmiksha Banathia
The nature of relations existing between India and the Saudi Arabia remain strategic, bilateral and geopolitical. The propinquity in the geographic location during the ancient times, as both the countries were separated by the Arabian Sea paved a way for the development of relations among both the nations in terms of culture, religion and social links. The fact cannot be denied that cultural, religious and social links contributed a lot in the development of bilateral relations, and demographically India played a key role in shaping the relations. India possesses third largest Muslim population in the world, which attracts Saudi Arabia to seek interest in India.
“Hajj and Expatriates” are considered as the non-official links among the two countries. The practise of Hajj and Umrah has been practising by Indian Muslims since ancient times. Moreover, many of the Indian Nawabs and rich Muslims contributed a lot in the maintenance of Mecca, which is a matter of appreciation by the Arabs towards Indians.
The strategic relations between India and Saudi Arabia were established during the period of British rule in India. But, during the 1947 partition, Saudi Arabia became more sympathetic towards Pakistan, which eventually, resulted in the political distancing between the two nations. Moreover, Saudi Arabia also extended its support to Pakistan on ‘the issue of Kashmir’. But, the diplomatic relations between the two countries were established after India gained Independence. It can be said that India-Saudi relations have undergone several upheavals throughout history. After attaining Independence, India’s new Foreign policy during the Cold War along with the geo-political outlook restricted to develop cordial relations with Saudi Arabia. Although, ‘Pakistan’ was another factor as, it shares the strategic and military ties with Saudi state. The proximity of India and Soviet Union strained the relations between the two. Also, the demolition of “Babri Masjid” in India, created havoc in Arabian Peninsula.
Despite all these odds, both the countries have exchanged a several high-level visits. It was during 1955, when King Saud visited India followed by the signing of Panchsheel Treaty. The then Prime Minister, Jawaharlal Nehru also paid a visit to Saudi Arabia in 1956, which marks the strengthening of relations among the two. Moreover, Nehru was bestowed by the title of “Marhaba Rasool al-Salam”, the Messenger of Peace by Saudi Arabia. It was during the oil boom in 1970’s, when the number of Indian expatriates suddenly started rising. In the contemporary times, Saudi Arabia accounts the highest number of Indian expatriates as migrant labours. Saudi Arabia prefers Indian labours as they are apolitical in nature and doesn’t create any havoc for the Saudi authorities.
An impetus to bilateral relations was provided during to the Saudi Arabia visit of Prime Minister Indira Gandhi in 1984. Moreover, it was during the 1990’s, when India received an ‘Observer Status’ in Organization of Islamic Cooperation (OIC), by Saudi Arabia despite the resistance offered by its ally, Pakistan. Saudi State also provided collaboration to India in terms of, fighting Islamic terrorism prevailing in the Middle East. Similarly, an impetus in the trade relations were provided during the 1990’s, when India introduced the policy of Economic Liberalization. It marked the massive rise in both imports and exports. Along with that, both the nations are willing to expand trade and cooperation in the fields of pharmaceuticals, telecommunications, biotechnology, agriculture, etc. A number of Memorandums of understanding have been signed between both the countries.
The bilateral relations entered a new phase during the special visit paid by the first Saudi Monarch, King Abdullah in 2006. An agreement named “Delhi Declaration” was signed by Manmohan Singh and King Abdullah, which included Energy, Trade, Education, Health etc. This was followed by “Riyadh Declaration”, which dealt with Terrorism, Narcotics, Arms, etc., during Manmohan Singh’s Saudi Arabia visit in 2010, where he also addressed the “Majlis-e-Shura”, the Consultative Assembly of Saudi Arabia. After acquiring the political power, Indian Prime Minister Narendra Modi, there was a steep rise in the relationships existing between the two nations. “India’s Look West Approach”, has complemented the existing bilateral ties. It can be noticed over here that during the first tenure of Prime Minister Modi, the focus was primarily economic in nature. Modi is also the first Indian citizen who is a recipient of highest civilian award of Saudi Arabia. For the very first time, Saudi Arabia permitted “Air India flight’’ to use Saudi airspace while covering the distance from New Delhi to Tel Aviv. This marks the transition in the Saudi’s approach towards India as it delivers a positive outlook to the entire world.
It was during 2019, when Crown Prince Muhammad visited India. The visit was marked by the increase in the trade relations along with the raised quota of Hajj for the Indian Muslims. There is no doubt while considering the fact that Saudi Arabia is among the prominent FDI investors along with the important supplier of hydrocarbons in India. Moreover, India has approached some of the West-Asian countries including Saudi Arabia, so as to make investments in diverse fields like, Wind Power Projects, Indian Oil Companies, Petrochemical Industries, etc. Both Saudi Arabia and United Arab Emirates have jointly decided to extend support to India by developing the largest Greenfield Refinery of world in Maharashtra. It was decided by the authorities of both the countries to start the first joint naval exercise in March 2020, which is now delayed due to the outbreak of COVID-19.
COVID-19 pandemic has posed a diverse range of challenges at the international level. Its impact is devastating on economic, social and political front. India, no doubt, is facing a kind of economic war amidst the Corona crises as both the states and the central governments are running out of resources to pay the salaries. The setback is received by not only one stratum of the society but all including migrant labours, farmers and almost, all of the Institutions.
While keeping into consideration the plight of Saudi Arabia, the experts have concluded that the Kingdom is going to experience the contraction in the non-oil economy. ‘Vision 2030’, Programme by Crown’s Prince is also witnessing the financial cuts due to the reason that the money is being invested in Public Health. Moreover, a decline in the oil prices, from which about 80 percent revenues are received by the Kingdom, is also declining. It was during the month of March when all the Ministries of Kingdom received an order of slashing their budgets by 20-30 percent.
The ‘Nitaqat Policy’, which involves the mandatory Saudi Nationals’ employment in the Private enterprises, carrying a fixed percentage, will also pose a challenge to the Indian expatriates in the coming future. The recent statement by Mohammad al-Jadaan, Finance Minister of Saudi Arabia that in order to reduce the economic setback caused by COVID-19, the expenditures must be reduced and COVID-19 pandemic has brought an ambiguous situation to the entire world, as it is not limited in the periphery of a single nation state. Due to the economic insecurities faced by all, this can be analysed that as of now, every country, will prefer to boost its economy rather than investing in other nations. The similar situation applies in the Indo-Saudi relations as both of theirs’ focus will be on eliminating all kinds of unpredictable challenges in the coming future. It will severely affect the oil trade of Saudi Arabia and will hit the Indian migrants. It was evident in the past about how both the nations stood by each other during crises, and thus, COVID-19 will hardly impact the relations between two.
India has adopted the idea of “Vasudhaiva Kutumbakam”, meaning the world is a family, amid the pandemic as it is providing medicines to various nations. The Indo-Saudi relations can be maintained by focussing on the multi- dimensional aspect. The focus should be on strengthening the trade relations by boosting both imports and exports between the two nations. During the pandemic, both should be willing to lend support to each other in every way possible. Such measures are needed to be adopted so as to deal with the Pandemic.
