Pakistan and Saudi Arabia on Wednesday elevated their decades-long security partnership by signing a Strategic Mutual Defence Agreement, under which any aggression against one country will be treated as aggression against both.
The pact was signed in Riyadh during Pakistan Prime Minister Shehbaz Sharif’s state visit, where he was received by Saudi Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace, according to Geo News.
"Building on a partnership extending nearly eight decades, and grounded in bonds of brotherhood, Islamic solidarity and shared strategic interests, the two sides signed the Strategic Mutual Defence Agreement," a joint statement said.
The accord aims to enhance bilateral security cooperation, strengthen joint deterrence and contribute to regional and global peace.
Geo News reported, “It aims to develop defence cooperation further and strengthen joint deterrence against any aggression. Crucially, the agreement stipulates that any aggression against one country shall be considered aggression against both.”
Bloomberg highlighted potential regional ramifications, noting that “a mutual defence pact risks pulling Saudi Arabia into a confrontation with India, with which Pakistan has fought four major wars.”
The India-Pakistan relationship, marked by a brief but tense four-day confrontation in May this year, including jet fighter dogfights, drone strikes and artillery exchanges along their shared border, adds further complexity to the pact’s implications.
India’s response
India on Thursday said it would carefully examine the pact’s implications for national security and regional stability.
External Affairs Ministry spokesperson Randhir Jaiswal told reporters, “We have seen reports of the signing of a strategic mutual defence pact between Saudi Arabia and Pakistan. The government was aware that this development, which formalises a long-standing arrangement between the two countries, had been under consideration.”
He added, “The government will study the implications of this development for our national security as well as for regional and global stability,” reaffirming India’s commitment to “comprehensive national security in all domains.”
India-Saudi ties
India’s relations with Saudi Arabia have strengthened over the past two decades.
Diplomatic relations were established in 1947, and strategic partnerships were formalised through landmark agreements such as the Delhi Declaration (2006) and the Riyadh Declaration (2010).
Prime Minister Narendra Modi’s state visit to Riyadh in April 2025 resulted in multiple agreements covering energy, space, health, sports, postal cooperation and plans to establish two oil refineries in India.
According to the Embassy of India in Riyadh, bilateral trade reached USD 41.88 billion in FY2024-25, with Indian exports of USD 11.76 billion and imports of USD 30.12 billion.
In bilateral trade, the jewellery sector has been a standout success: exports surged 45% to USD 151.5 million in FY25, powered by a 55% jump in studded gold shipments.
Colin Shah of the Gem & Jewellery Export Promotion Council told CNBC-TV18, “Saudi Arabia is a large market and could potentially be a billion-dollar export market in the long term.”
India’s trade relations in the Gulf are expanding.
The country has a free trade agreement with the UAE, is close to finalising one with Oman, and anticipates concluding talks with Qatar in October. Negotiations are also underway for a bilateral investment treaty with Saudi Arabia, alongside broader discussions at the GCC level.
Trade and investment flows
Indian investments in Saudi Arabia total approximately USD 3 billion across IT, construction, financial services and pharmaceuticals. Conversely, Saudi investments in India, including those by the Public Investment Fund (PIF), total around USD 10 billion, covering Reliance Jio, Reliance Retail, food companies and renewable energy projects.
According to the India Brand Equity Foundation (IBEF), major exports from India to Saudi Arabia include rice, petroleum products, chemicals and aircraft. In FY25, India exported USD 11.75 billion worth of goods across 4,789 commodities. Leading exports included:
Basmati rice: USD 1.20 billion
Aeroplanes and other aircraft exceeding 15,000 kg: USD 1.12 billion
Motor vehicles: USD 1.08 billion
Benzene: USD 636.26 million
Refined copper wire: USD 494.33 million
India imported 604 commodities from Saudi Arabia in FY25, totaling USD 30.12 billion. Major imports included petroleum crude (USD 20.09 billion), liquefied butanes (USD 1.23 billion), diammonium phosphate (USD 1.13 billion), liquefied propane (USD 966.48 million), and aeroplanes and other aircraft (USD 839.05 million).
Saudi Arabia accounted for 18% of India’s energy imports in FY23, underlining its significance to New Delhi’s energy and economic security.
Saudi Arabia is the 20th-largest investor in India, with cumulative FDI equity inflows of USD 3.27 billion from April 2000 to March 2025.
According to the Embassy of India in Riyadh, Major Saudi investors include ZAMIL, ARAMCO, SABIC, E-holidays and Al Batterjee Group. SoftBank’s Vision Fund has also invested in Indian startups such as Delhivery, FirstCry, Grofers, Ola, OYO, Paytm and PolicyBazaar.
Indian companies including TCS, L&T, TCIL, Tata, Wipro and Shapoorji & Pallonji maintain a strong presence in Saudi Arabia.
The Indian community in Saudi Arabia numbers 2.6 million, making it the Kingdom’s largest expatriate group. According to IBEF, Indians are the “most preferred community” due to their expertise, discipline and law-abiding, peace-loving nature.
Strategic partnership and bilateral agreements
India and Saudi Arabia held the second meeting of the India–Saudi Arabia Strategic Partnership Council (SPC) on April 22, 2025, in Jeddah, co-chaired by Prime Minister Modi and Crown Prince Mohammed bin Salman.
The meeting strengthened cooperation across investment, energy, defence, and culture.
Saudi Arabia reaffirmed its commitment to invest USD 100 billion in India. Key agreements were signed, and new institutional mechanisms were introduced to enhance long-term strategic engagement.
Saudi Arabia also plays a pivotal role in India’s energy security. The USD 44 billion West Coast Refinery & Petrochemicals Project in Maharashtra is a joint venture between Saudi Aramco, Abu Dhabi National Oil Company and an Indian consortium.
India-Saudi defence cooperation
Defence cooperation between India and Saudi Arabia is still nascent but accelerating.
The groundwork began in 2020, when the then-Chief of Naval Staff Manoj Mukund visited Riyadh, followed by a full ministerial-level defence visit in 2024.
Operationally, the two countries conducted joint naval exercises in 2021 and 2023, and the first-ever land forces exercise in 2023.
In April 2025, the Strategic Partnership Council expanded to include a ministerial committee on defence cooperation.
Saudi Arabia will participate in Aero India 2025, and India’s state-owned Munitions India signed a USD 225 million export deal with the Kingdom in 2024. Defence exports also include ammunition worth USD 225 million in February 2024.
The bigger picture
India-Saudi ties are evolving across trade, energy, technology and now defence. While economic collaboration has matured, defence cooperation is entering a phase of rapid expansion.
The Pakistan-Saudi defence pact adds a new dimension to regional security. Bloomberg highlighted that the agreement could complicate the balance of power in South Asia and potentially draw Saudi Arabia into the volatile India-Pakistan equation.
India’s careful scrutiny signals a delicate diplomatic balancing act, as Riyadh maintains historical ties with Islamabad while expanding multifaceted relations with New Delhi.
Source Name : Economic Times