CURRENT AFFAIRS

Detailed explanation-1: -India and Saudi Arabia on 3 April 2016 inked five agreements to boost the bilateral cooperation between the two nations. The agreements were signed in Riyadh during the two day visit of Prime Minister Narendra Modi to Saudi Arabia from 2 April to 3 April 2016.

Detailed explanation-2: -Trade: Saudi Arabia is India’s fourth largest trade partner (after USA, China and UAE) and a major source of energy as India imports around 18% of its crude oil requirement and  22 % of its LPG requirement from the Kingdom. In FY 2021-22, bilateral trade was valued at US $42.8billion.

Detailed explanation-3: -India and Saudi Arabia enjoy cordial and friendly relations reflecting the centuries old economic and socio-cultural ties. The establishment of diplomatic relations in 1947 was followed by high-level visits from both sides.

Detailed explanation-4: -The core logic underpinning the relationship is that the United States of America (USA) provides military protection of the Kingdom in exchange for a reliable oil supply from the Saudis, pricing of oil in USA dollars, and Saudi support for American foreign policy operations across the world.

Detailed explanation-5: -India’s total bilateral trade with the Arab world stands at over US$ 162 billion, and covers a variety of goods and services, from oil to infrastructure and telecommunications to consumer goods. It is home to more than 7 million Indians and caters to 60% of our crude oil imports.