Prime Minister of India Narendra Modi took the opportunity of the visit by Crown Prince of Saudi Arabia Mohammad bin Salman, as part of the G20 Summit, to celebrate the “historic” start of an economic corridor linking the 2 nations. The leaders also discussed collaboration in space, semiconductors, and defense manufacturing. Although specific details of the talks were not disclosed, Indian foreign ministry spokesman Arindam Bagchi stated that they covered energy security, trade, investment, and defense.

This significant development follows the unveiling of ambitious plans for a modern-day Spice Route, which will enhance trade ties between India, the Middle East, and Europe. The corridor aims to foster economic cooperation and digital connectivity across Asia, West Asia, and Europe. Among the discussions was also the potential for future trade in local currencies as well as a possible free trade agreement between India and the Gulf Cooperation Council.
Throughout the talks a total of 8 agreements between India and KSA were signed which included comprehensive strategies for future cooperation on the hydrocarbon and energy sector. This also included a $100 Billion investment into a joint refinery project in western India.
The economic corridor is anticipated to include extensive infrastructure improvements such as ports, railways, roads, power, gas grids, and an optical fiber network, ultimately connecting India with the Gulf countries.

US President Joe Biden hailed the initiative as “historic,” and European Commission President Ursula von der Leyen emphasized its significance beyond just transportation infrastructure.
This mega project, driven by India, KSA, USA, the EU, UAE, and other nations, aims to enhance economic cooperation and boost regional stability. It also seeks to counterbalance Chinese infrastructure investments, foster Middle Eastern ties with Israel, and integrate India’s vast market with western countries.

Bilateral trade between India and the Kingdom has reached $42.8 billion last year, with KSA being one of India’s top petroleum exporters. The leaders affirmed the importance of their strategic partnership in the fast-growing economies of both nations.
“For India, Saudi Arabia is one of the most important strategic partners,” Prime Minister Modi noted.