2 weeks Ago By Moneycontrol
Prime Minister Narendra Modi will arrive in Jeddah on a two-day bilateral visit to Saudi Arabia, marking the first by an Indian PM to Saudi Arabia’s commercial hub in over four decades. The high-profile visit arrives at a critical juncture, both for bilateral relations and the broader geopolitical landscape. It also underscores the remarkable transformation of India-Saudi relations from modest beginnings to a comprehensive strategic partnership spanning economic, defense, and cultural dimensions.
What to expect from the visit This visit is expected to encompass a broad agenda, including energy cooperation, defence collaboration, trade and investment discussions, and cultural exchanges, besides expediting Riyadh’s USD 100-billion investment plan for India. Prime Minister Modi will meet with Crown Prince Mohammed bin Salman to strengthen bilateral relations and discuss key regional and global issues, particularly the Middle East situation. Foreign Secretary Vikram Misri announced on Saturday that several Memoranda of Understanding (MoUs), including one on green hydrogen, are expected to be signed following the talks.
US tariffs and economic nationalism: The Trump administration’s recent tariffs have led to economic uncertainty and volatility in global supply chains. For oil markets, such protectionist measures tend to increase input costs and contribute to inflation, indirectly pushing up energy prices worldwide. Russia-Ukraine war and its aftershocks: Now in its fourth year, the Russia-Ukraine war continues to disrupt global energy markets.
Western sanctions on Russian oil, combined with supply-chain bottlenecks in Eastern Europe, have kept crude prices elevated and unpredictable. Brent crude remains in the $85–$90 range as of April 2025, a significant burden for energy-importing countries like India. PM Modi's upcoming visit to Saudi Arabia is poised to reinforce the multifaceted partnership between the two nations.
By addressing key areas such as energy security, defense collaboration, trade, and cultural ties, the visit aims to lay the groundwork for a more integrated and strategic alliance, contributing to regional stability and economic growth..
