Deciphering the India-Saudi Arabia Agreement for Energy Security and Regional Stability
After the G20 Summit, Prime Minister Modi held talks with Saudi Crown Prince Mohammed bin Salman, leading to the signing of multiple agreements between Saudi Arabia and India.
India and Saudi Arabia have solidified their commitment to cooperation by signing more than 50 Memorandum of Understanding (MoUs) encompassing various critical sectors, including digital transformation,cyber-security, trade, healthcare, defence, artificial intelligence, infrastructure, and renewable energy. These significant agreements were formalised just two days following the conclusion of the G20 summit, during which both nations unveiled a groundbreaking railway corridor deal.
Prime Minister Narendra Modi emphasised the paramount significance of Saudi Arabia to India, highlighting the continuous strengthening of mutual cooperation between the two nations over time.
In his address, Prime Minister Modi drew attention to a notable governmental agreement that guarantees the availability of solar power even after sunset, underscoring the sustainability of this energy source. As part of this pivotal accord, plans are to install an underwater power transmission line connecting India and Saudi Arabia.
Saudi Arabia’s Investment Minister, Khalid Al-Falih, has announced the possibility of establishing an office for the country’s sovereign wealth fund, the public investment fund (PIF), within GIFT City. GIFT City, situated in Gandhinagar, Gujarat, is envisioned as a thriving centre for financial services, technology, and innovation.
What is ‘Media Oasis’?
Saudi Arabia has set ambitious investment goals in India, targeting substantial contributions to sports infrastructure and tourism development by 2030. In line with this vision, an exhibition named “Media Oasis” was strategically held in Delhi alongside the G20 side events. This exhibition served as a platform to unveil Saudi Arabia’s forthcoming endeavors in India, highlighting its long-term intentions and commitment to fostering bilateral ties in these sectors.
India’s Minister for New and Renewable Energy, R.K. Singh, disclosed that the United Arab Emirates (UAE) is keen on establishing grid connectivity with India, following a Memorandum of Understanding (MoU) signed with Saudi Arabia on September 10. This MoU encompasses energy cooperation and grid connectivity. Singh highlighted that “linking India’s power grid with Saudi Arabia and the UAE could enable India to provide power to Europe via the interconnected grids in the West Asian region”.
The agreement aims to foster collaboration in renewable energy, including green hydrogen and ammonia, potentially benefiting from cost-effective financing from Saudi funds and facilitating Indian green energy companies’ entry into Saudi Arabia.
