Saudi Crown Prince Mohammed bin Salman, looking to boost ties with Asian allies, has arrived in India on a two-day visit amid rising expectations of further investment deals following a high-profile trip to Pakistan. The Saudi prince, also known as MBS, was welcomed at the New Delhi airport by the Indian Prime Minister Narendra Modi, who embraced him in a characteristic bear hug.
On Wednesday, Prince Mohammed is likely to hold talks with Modi, who is a recipient of Saudi Arabia's highest civilian honour, the King Abdulaziz Sash. "Trade and investment, defence and security, including counter-terrorism, and renewable energy" will be discussed during MBS's meeting with Modi, India's foreign ministry said. The two sides are also expected to discuss oil giant Saudi Aramco's investment in refineries in India, including the company's stalled project to build a $44bn facility on the western coast of India.
On Monday, Maharashtra CM Devendra Fadnavis announced that the India-Saudi project would be moved to a new location following demonstrations by farmers protesting against land acquisition.
Energy supplies
India's ties to Saudi Arabia have grown significantly over the past two decades. Home to more than 2.7 million Indian expatriates, the kingdom is India's fourth-largest trading partner, with bilateral trade worth $28bn. Riyadh is also the top source of India's energy supplies, supplying 20 per cent of its crude. "India, as a massive consumer of oil, and Saudi Arabia, as a major producer is an obvious synergy," Manoj Joshi of New Delhi-based Observer Research Foundation think-tank, said.
"Indian corporates, skilled personnel and managers are already playing a big role in Saudi Arabia. The Saudis, in turn, hope to play a role in India's growth by becoming investors in the National Investment and Infrastructure Fund soon. Investment in non-oil sectors in India is also part of Saudi economic strategy," he added. In November, the crown prince announced he was on the verge of finalising an initial investment in India's National Investment and Infrastructure Fund, a quasi-sovereign wealth fund, to help accelerate the building of ports, highways and other projects in India.
Pakistan ties
"The texture of Saudi Arabia's relationship with Pakistan is different," Joshi said. "Islamabad looks up to Saudi Arabia as a co-religionist and indeed, leader of the Islamic world. The Indian relationship is based on a practical partnership of two sovereign states."
