How Saudi Arabia's balancing act on Kashmir has helped India ties, left Pakistan disgruntled

File photo of Saudi Crown Prince Salman and PM Modi during the former's India visit

Ties between India and Saudi Arabia are set to get a renewed boost with Prime Minister Narendra Modi embarking on an important two-day visit to the Kindgom on April 22 at the invitation of Crown Prince Mohammed bin Salman (also known as MBS).

This will be the Prime Minister's third visit to Saudi Arabia and first visit to the city of Jeddah. Modi is the fourth Indian PM overall to visit the Kingdom after Jawaharlal Nehru (1955), Indira Gandhi (1982) and Manmohan Singh (2010). The visit comes at a time when India is looking to deepen ties with the major oil exporter and OPEC+ leader amid mounting global trade uncertainty triggered by US tariffs.

India and Saudi Arabia have deepened their bilateral ties over the years, spanning economic cooperation, defence collaboration, energy partnerships and cultural exchanges.

One of the most significant outcomes of India’s growing diplomatic engagement with Saudi Arabia has been the Kingdom’s evolving stance on Kashmir. While Saudi Arabia openly backed Pakistan during the 1971 war, its position has gradually softened over the years.

Though Saudi's support to Pakistan, both diplomatic and economic, is rooted in their shared Islamic connection, the country under MBS has adopted a broadbased approach in terms of the Kingdom's relationship with India amid New Delhi's growing economic and diplomatic clout.

This has helped both countries explore economically frutiful ties over the years, with Saudi Arabia emerging as India's fifth-largest trading partner while India becoming the Kindgom's second-largest.

In 2019, Prince Salman had promised to increase Saudi investments in India to $100 billion in the coming years. India is already a leading recipient of Saudi crude, and state-backed energy giant Saudi Aramco has long voiced interest in investing in the country.

According to India's embassy in Riyadh, Saudi Arabia’s investments in India total about $10 billion. That includes stakes the Saudi sovereign wealth fund, known as the PIF, has taken in Reliance subsidiaries.

In the financial year 2023-24, India's imports from Saudi Arabia amounted to $ 31.42 billion, and exports stood at $11.56 billion.

Saudi Arabia has also joined India, UAE and EU in launching the IMEC (India–Middle East–Europe Economic Corridor) — a major infrastructure initiative aimed at enhancing connectivity and trade between India, the Middle East and Europe.

At the same time, Saudi Arabia has more than once snubbed Pakistan in favour of India — reflecting a more pragmatic approach by MBS.

For instance, in 2023, Prince Salman chose to visit India without including Pakistan in his itinerary, signaling a deliberate focus on strengthening ties with New Delhi.

During the visit, MBS and Modi jointly condemned terrorism and emphasized the need for dismantling terrorist infrastructures, aligning closely with India's security concerns.

In 2020, Saudi Arabia had demanded the repayment of a $1 billion loan from Pakistan and declined to renew a $3.2 billion oil credit facility. The financial pullback followed Pakistan's public criticism of the Organization of Islamic Cooperation (OIC), led by Saudi Arabia, for its inaction on the Kashmir issue.

More recently, in 2024, Saudi Arabia echoed India’s long-held view by calling for the Kashmir issue to be resolved bilaterally between India and Pakistan — effectively aligning with New Delhi’s position.

Saudi Arabia’s deepening economic and strategic partnership with India stands in contrast to its increasingly neutral stance on Kashmir — and, at times, a diplomatic cold-shoulder to Pakistan.