Prime Minister Narendra Modi’s April 22–23, 2025 visit to Saudi Arabia comes at a critical stage — one shaped by shifting global power dynamics and a fast-transforming West Asia.

It is his third visit after landmark trips in 2016 and 2019, and includes the second summit of the Strategic Partnership Council — a mechanism born out of Crown Prince Mohammed bin Salman’s 2019 India visit.

PM Modi’s visit to Saudi Arabia, 2019

PM Modi’s visit to Saudi Arabia, 2016

This visit is set to reframe bilateral ties from transactional cooperation to transformative partnership, expected to cement India’s presence in the Gulf as a strategic player, while also offering Saudi Arabia a reliable partner amidst global uncertainties, including oil market volatility and regional security challenges.

Energy: The Basis and Prospect

Strengthening collaboration in the energy sector remains an important aspect of India-Saudi relations. Saudi Arabia ranks as India’s third-largest source of crude oil and LPG, constituting almost 18% of India’s LPG imports. The growth in energy trade in 2023-24 was $25.7 billion.

Both countries appear keen to expand their cooperation beyond the traditional focus on oil trade. Saudi Aramco’s interest in exploring partnerships with Indian companies, such as BPCL and ONGC, reflects a deepening confidence in India’s energy sector and signals a shift toward more strategic, long-term collaboration, including joint investments and co-development initiatives.

Meeting the Minister of Energy of the Kingdom of Saudi Arabia, 2019.

Furthermore, the visit is expected to lead to the conclusion of new MoUs, including in the area of green hydrogen — a development that aligns with India’s clean energy ambitions and Saudi Arabia’s Vision 2030 strategy for economic diversification. These initiatives hold the potential to enhance India’s long-term energy security while supporting Saudi Arabia’s efforts to adapt to evolving global energy dynamics and maintain a strong position in international markets.

IMEC: A Corridor of Connectivity and Influence

Perhaps the most geopolitically significant agenda item is the India-Middle East-Europe Economic Corridor (IMEC). Launched at the G20 Summit in New Delhi in 2023, IMEC envisions a seamless multi-modal transport and trade corridor connecting India to Europe via the Middle East. Saudi Arabia, occupying the central railroad leg of this route, holds the key to its implementation.

The Saudi segment is still the longest corridor and most neglected segment. It is anticipated that PM Modi’s visit will pave the way for a forward-thinking roadmap. The promise of IMEC is that it will provide a key alternative to trade routes like the Suez Canal by improving resilience and reducing reliance on traditional maritime routes. IMEC links Indian Ports (Mundra, Kandla, and JNPT) with UAE and Saudi Ports (Fujairah, Khalifa, Dammam, and Ras Al Khair), which are resilient and secure against traditional choke points like the Suez Canal.

IMEC aligns well with Saudi Arabia’s vision of emerging as a key logistical hub between the East and West. For India, it complements the Act West policy by enhancing connectivity to Europe and Africa through reliable and secure trade routes. The corridor also promotes regional transparency, fosters multilateral cooperation, and supports sustainable infrastructure development, offering a complementary and balanced alternative within the evolving global connectivity landscape.

Economic and Investment Outlook

As always, trade and investment will also take center stage in terms of dialogue. From joint military exercises, such as Al Mohed Al Hindi, to significant defense exports — including a $300 million artillery ammunition deal in 2024 — the relationship is moving toward deeper institutional engagement. The upcoming talks are expected to cover areas such as intelligence sharing, joint training programs, and co-production of defense equipment.

Against the backdrop of challenging global economic conditions and Saudi Arabia’s ongoing efforts to diversify beyond an oil-dependent framework, India presents a promising destination for long-term, strategic investment. By working together to facilitate a more enabling investment environment, both nations can unlock mutually beneficial opportunities that support sustained economic growth, foster innovation, and enhance industrial collaboration.


Shared Stakes in a Shifting Geopolitical Landscape

Finally, the visit carries wider strategic significance amid an evolving regional landscape marked by shifting diplomatic dynamics. Saudi Arabia’s engagement with Iran, facilitated in part by China and acknowledged by the United States, reflects a broader effort to recalibrate longstanding regional relationships. As countries such as Saudi Arabia, Qatar, and Kuwait take a more autonomous stance in shaping their foreign policy priorities, India’s balanced and constructive approach enables it to engage across the spectrum. This reinforces its image as a credible and responsible partner committed to regional stability and dialogue.

PM’s roundtable interaction with Saudi Business Leaders, 2016.

Prime Minister Modi’s visit to Saudi Arabia symbolizes far more than a routine diplomatic engagement — it reflects a recalibration of India’s foreign policy towards deeper integration with West Asia’s evolving political and economic ecosystem. Hence, Saudi Arabia is vital for India’s strategic outreach in the Middle East, offering access to key regional dynamics. In return, India serves as a stable, dependable partner for Saudi Arabia, especially amid economic diversification and regional shifts in a changing global landscape.

The essence of the visit is a departure from routine diplomatic activity; it marks an operational shift in India’s foreign policy towards deeper integration in the political and economic dynamics of West Asia. As the two leaders convene, they are not just strengthening bilateral ties — they are scripting a new chapter in India’s global rise and Saudi Arabia’s regional transformation.

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The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri Narendra Modi has approved the continuation of the “Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS” (SARTHAK PDS) as an umbrella scheme, in the 16th Finance Commission cycle award period, with an outlay of Rs. 25,530 crore as Central share.

The CCEA has also decided to revise the norms of Central assistance for meeting expenditure incurred by States/UTs intra-state movement & handling of foodgrains and FPS dealers’ margin and continuation of the existing funding pattern of Central Assistance.

The Scheme is conceived as an umbrella scheme integrating the ongoing schemes: (i) “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and (ii) “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS)” to comprehensively strengthen implementation of the National Food Security Act, 2013 (NFSA).

SARTHAK-PDS Scheme aims to provide (a) assured financial support for intra-State movement, handling and FPS dealer’s margin, and (b) a unified, citizen-centric, intelligent and interoperable PDS architecture that ensures last-mile service delivery, minimizes leakages and strengthens the nation’s commitment to food security under NFSA, with the merged scheme to operate up to 31.03.2031.

SARTHAK-PDS Scheme seeks to modernize, integrate and intelligently optimize PDS operations through advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain, by creating standardized architectures and unified databases for real-time monitoring, AI-driven grievance and analytics systems, State Command Control Centres for data-driven oversight, and ISO-certified process frameworks to ensure transparency, security and sustainability in PDS operations.

Government of India has a social & legal commitment to the people of the nation - a dignified life by ensuring them access to food and nutritional security through the availability of adequate quantities of quality food grains. The Scheme will work towards fulfilling the Government of India's commitment to 81.35 crore persons covered under NFSA. Building on the statutory and policy framework, SARTHAK-PDS retains and streamlines the financial assistance component while simultaneously embedding it within a modern, technology-driven PDS ecosystem.

Over the past decade, the Government has implemented multiple digitization initiatives such as End-to-End Computerization of TPDS, Integrated Management of PDS (IM-PDS) and SMART PDS, along with citizen-facing applications like Mera Ration, Anna Mitra, Rightful Targeting Dashboard and Anna Sahayata, and since 1st April 2023, the SMART PDS scheme has acted as the cornerstone of technology-led reforms by enabling complete digitization of ration cards, Aadhaar seeding, FPS automation through e-PoS, online allocation and computerized supply-chain management across 36 States/UTs.