India and Saudi Arabia are pushing forward with plans to boost mutual investments and economic growth. On October 6, 2025, Indian Ambassador Suhel Ajaz Khan met Saudi Investment Minister Khalid Al Falih in Riyadh, discussing ways to integrate investments and explore new opportunities in key sectors.
This high-level talk underscores the deepening partnership between the two nations, built on centuries of trade and cultural links, as they aim to expand beyond traditional energy ties into tech, renewables, and more.
Core Discussions and Outcomes
The meeting covered a broad range of investment topics, focusing on growth and strategic cooperation. Ambassador Khan expressed thanks for Saudi support to Indian firms setting up operations in the Kingdom.
Both sides explored paths to enhance bilateral collaborations, reflecting on recent progress in trade and investments. Officials highlighted the need for more joint ventures to drive economic integration.
This comes amid Saudi Arabia’s push for foreign investments, with recent data showing 22.8 billion riyals in inflows during the second quarter of 2025.
Current Trade Landscape
Bilateral trade reached $52.76 billion in fiscal year 2023, marking strong growth. India’s imports from Saudi Arabia climbed 23.47 percent to $42.03 billion, while exports rose 22.48 percent to $10.72 billion.
Saudi Arabia ranks as India’s fourth largest trading partner, and India is second for Saudi Arabia. This trade accounts for 4.53 percent of India’s total in 2022-23.
Saudi direct investments in India total $3.15 billion as of March 2022, with major players like Aramco, Sabic, and the Public Investment Fund contributing $4.6 billion to Indian startups through funds such as SoftBank’s Vision Fund.
Recent forecasts show Saudi Arabia expecting 4.4 percent GDP growth in 2025, driven by non-oil sectors, creating openings for Indian expertise.
A quick look at trade figures in a table:
| Fiscal Year | Total Trade (USD Billion) | India Imports Growth (%) | India Exports Growth (%) |
|---|---|---|---|
| 2023 | 52.76 | 23.47 | 22.48 |
| 2022 | Not specified | Baseline | Baseline |
This table shows the upward trend in economic exchanges.
Recent Bilateral Initiatives
The Strategic Partnership Council guides these relations, with committees on political and economic matters. In April 2025, the High Level Task Force on Investments met in Riyadh, co-chaired by top officials, to discuss mutual priorities.
Earlier pacts include a 2023 memorandum on electrical interconnection and green hydrogen. Pakistan-Saudi talks on digital infrastructure also hint at regional trends that could benefit India.
Saudi Arabia’s Vision 2030 aligns with India’s growth goals, leading to investments in emerging sectors. The Public Investment Fund targets $1.07 trillion in assets by 2025, with 21 percent growth in new areas.
Indian companies have gained from Saudi reforms, like labor initiatives that ease worker mobility.
Opportunities in Key Sectors
Experts see vast potential in renewables, where joint projects in solar and clean hydrogen could thrive. Tech events like LEAP 2025 offer platforms for Indian innovators to connect.
Food security and tourism present more avenues, with India providing agricultural tech and cultural exchanges.
Here are promising sectors:
- Energy: Focus on green initiatives and supply chains.
- Technology: Investments in startups and digital services.
- Infrastructure: Participation in megaprojects like NEOM.
- Healthcare: Collaborations in pharma and medical tech.
These areas could lead to billions in new deals by 2030.
Cultural ties, including yoga cooperation since 2021, add a social layer to economic bonds.
Challenges to Overcome
Navigating regulatory differences remains a hurdle. Both nations work to simplify visa processes and business norms for smoother investments.
Global events, like oil price fluctuations, impact ties, but diversification efforts help mitigate risks.
Multilateral forums like G20 provide additional support for sustained growth.
Looking Ahead to 2026 and Beyond
Saudi Arabia projects 4.6 percent GDP growth in 2026, supported by non-oil activities. This sets the stage for deeper India ties, possibly through more investment forums.
With events like the Cultural Investment Conference wrapping up in Riyadh, the focus on global partnerships invites Indian involvement.
Analysts predict increased remittances and job opportunities, building on the 6.7 percent Saudi contribution to India’s inflows in 2024.
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