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Why Narendra Modi's 2025 visit to Saudi Arabia is important

Why Narendra Modi's 2025 visit to Saudi Arabia is important

India Today22-04-2025

Prime Minister Narendra Modi's two-day visit to Saudi Arabia in April 2025 marks a significant moment in India's evolving West Asia policy and bilateral diplomacy. As the first Indian prime minister in over four decades to visit Jeddah, the commercial capital of Saudi Arabia and the gateway to Islam's holiest sites, Modi's visit goes far beyond symbolic gestures. It embodies a recalibration of India's strategic priorities and a deepening of ties with one of its most critical partners in the region. This visit is not just about ceremonial diplomacy—it is a deliberate and high-stakes engagement that carries geopolitical, economic, and security implications at multiple levels.advertisement A strategic milestone: From Riyadh to Jeddah
Jeddah's choice as the destination for this high-level visit is itself noteworthy. Modi's previous visits to the Kingdom in 2016 and 2019 were to the political capital, Riyadh. By visiting Jeddah—long recognised as the port of entry for Indian pilgrims journeying to Mecca and Medina—Modi is emphasising the historical and cultural layers of India-Saudi Arabia relations. Indira Gandhi was the last Indian Prime Minister to visit Jeddah in 1982. The current visit, therefore, bridges a 43-year diplomatic hiatus and projects an India more attuned to the symbolic geography of the Islamic world.This isn't just historical nostalgia—it is a diplomatic calculation. Jeddah is the Kingdom's commercial engine, located on the Red Sea and central to Saudi Arabia's global trade networks and its Vision 2030 diversification strategy. Modi's presence here signals India's intent to be a long-term economic and strategic partner.advertisementStrategic Partnership Council: From agreement to actionAt the heart of this visit lies the third meeting of the India-Saudi Strategic Partnership Council (SPC), co-chaired by PM Modi and Crown Prince Mohammed bin Salman (MBS). Established in 2019, the SPC operates on two tracks: political-security-cultural cooperation and economy-investment collaboration. The council has been pivotal in institutionalising the bilateral relationship, turning declarations of friendship into frameworks for actionable cooperation.The current SPC meeting is expected to not only review progress but also chart new directions, especially in areas like green hydrogen, critical mineral supply chains, defence manufacturing, and digital infrastructure. With both countries being among the world's fastest-growing economies and influential members of the G20 and Global South, this partnership is no longer regional—it has global resonance.Defence ties: From symbolism to substanceThe most striking evolution in India-Saudi relations has been in defence cooperation. Traditionally confined to goodwill gestures and occasional visits, the defence partnership now features procurement deals, joint exercises, and institutional-level engagements. In 2024, India and Saudi Arabia held their first joint land military exercise, 'Sada Tanseeq,' in Rajasthan, along with a second edition of the naval exercise 'Al Mohed Al Hindi.' More importantly, in February 2024, the two nations signed their first-ever defence contract—a $225 million artillery shell deal with India's state-run Munitions India Limited (MIL), which also included the export of 155mm Advanced Towed Artillery Gun Systems (ATAGS).advertisementThese are not isolated events. They are part of a broader synergy: India's 'Make in India' initiative aligns well with Saudi Arabia's Vision 2030, which aims to localise defence production and reduce reliance on Western suppliers. What's new is not just hardware transfers but a deepening of institutional linkages—exchanges between defence colleges, high-level staff talks, and enhanced training programs. In the context of regional instability, especially in the Red Sea and Persian Gulf, these steps elevate India from being a transactional partner to a reliable strategic ally.Energy and green hydrogen: Fueling the futureEnergy remains a cornerstone of the India-Saudi relationship. But as the global energy landscape undergoes transition, both countries are recalibrating their approach. Traditional hydrocarbon trade continues to thrive, but the future lies in green energy.During this visit, a significant Memorandum of Understanding (MoU) on green hydrogen is expected to be signed. Saudi Arabia, with its abundant solar resources, and India, with its expanding technological base and policy push for renewables, are natural partners in clean energy innovation. By moving into green hydrogen collaboration, India and Saudi Arabia are not only securing their own energy futures but also contributing to global climate goals and sustainable development. This cooperation also buffers both economies against the volatility of fossil fuel markets and geopolitical energy disruptions.advertisementThe Indian diaspora: A human bridgeSaudi Arabia is home to approximately 2.7 million Indians, making it one of the largest overseas Indian communities in the world. These expatriates are not just economic contributors through remittances—they are socio-political stakeholders in bilateral ties. PM Modi's planned visit to a Jeddah-based factory employing Indian workers is more than optics. It reinforces India's commitment to its diaspora and acknowledges their role in Saudi Arabia's development.However, there are also pressing humanitarian concerns. More than 25% of all Indian prisoners abroad are in Saudi Arabia. Although several agreements exist on prisoner transfer, no significant repatriations have taken place. Foreign Secretary Vikram Misri has confirmed that this issue will be 'high on the agenda' during Modi's visit. Progress on this front could humanise India's foreign policy and win Modi crucial goodwill back home.Navigating West Asia's complex landscapePM Modi's visit comes at a time when West Asia is in flux. The Israel-Palestine conflict continues to escalate, while maritime insecurity—fueled by Houthi attacks in the Red Sea—threatens global supply chains. India and Saudi Arabia share concerns over regional stability, particularly given their growing economic interdependence and energy linkages.advertisementBoth leaders are also seen as influential figures in the broader diplomatic arena. Modi and Crown Prince Salman have maintained cordial relations with U.S. President Donald Trump, Russian President Vladimir Putin, and Ukrainian President Volodymyr Zelensky—highlighting their balancing acts in a polarised world. As part of the Global South, their ability to coordinate on multilateral issues—ranging from climate finance to peacebuilding—adds further relevance to this visit.GCC Free Trade Agreement: The larger Gulf agendaThe Modi-MBS talks are also expected to touch on the long-pending India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA). The GCC bloc—comprising Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman—represents a strategic economic zone for India. An FTA would reduce trade barriers, enhance market access, and streamline labour mobility—key for a region hosting millions of Indian workers and acting as a vital energy supplier.Reviving FTA negotiations amid shifting global trade routes, especially after Trump-era tariffs and ongoing disruptions due to conflicts, is vital for India's quest to diversify its economic partners and secure trade corridors through the Gulf.advertisementBeyond optics, toward strategic depthPM Modi's visit to Saudi Arabia is not just another diplomatic engagement. It is a geopolitical signal, a strategic consolidation, and a diplomatic recalibration all rolled into one. From defence cooperation and clean energy to diaspora engagement and multilateral coordination, the visit reflects a maturing relationship no longer limited to oil diplomacy or labour exchanges.As both countries navigate global uncertainties and regional complexities, the Modi-MBS partnership offers a model of pragmatic, multifaceted engagement that blends history with forward-thinking strategy. In a decade marked by disruptions—pandemics, wars, economic shocks—such resilient partnerships will define not only regional balances but also the global order.Must Watch

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All-party parliamentary delegation led by Shashi Tharoor wraps up U.S. visit

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Nifty 50 witnessed sharp upmove on June 6 after the outcome of RBI's mid quarter policy meet and closed the day with decent gains of 252 points. 'A long bull candle was formed on the daily chart that placed it at the edge of a decisive upside breakout of the broader range movement at 25,000 - 25,100 levels. Nifty 50, on the weekly chart, formed a long bull candle after the minor dip of previous two weeks. The weekly chart formation indicates a bullish rising three method type pattern, which is an uptrend continuation pattern,' said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. According to him, the next upside levels to be watched for Nifty 50 are around 25,200 and 25,500 levels this week. Immediate support is placed at 24,850 levels. Om Mehra, Technical Research Analyst, SAMCO Securities said that the Nifty 50 formed a strong bullish candle on the daily chart, decisively crossing and sustaining above the earlier resistance zone of 24,900. 'This breakout, accompanied by a weekly gain of 1.02%, underpins the underlying bullish tone and signals the continuation of upward momentum. The index is now comfortably positioned above its 9 EMA, with the widening gap from the 20 EMA offering an additional cushion for any short-term pullbacks. The daily RSI has bounced back above the 60 mark, aligning with the earlier positive divergence and confirming strength in momentum,' Mehra said. The resistance is seen near 25,120, and a sustained move above this could pave the way for further gains in this coming week. On the downside, support has shifted towards 24,880 – 24,900, which now acts as a buy-on-dip zone, added Mehra. Dr. Praveen Dwarakanath, Vice President of noted that the Nifty 50 formed a strong bullish candle and closed 100 points away from its resistance. 'The index has to break the 25,150 level to gain significant momentum towards the 25,700 level, till then one can look to short the index at present levels with a target of support at the 24,500 level,' said Dwarakanath. According to VLA Ambala, Co-Founder of Stock Market Today, the current upward trend may continue for a while and Nifty 50 could find support between 24,970 and 24,900, and experience resistance close to 25,200 and 25,280 in today's session. Bank Nifty index rallied 817.55 points, or 1.47%, to close at 56,578.40 on Friday, while it ended the week with a 1.49% gain. 'Bank Nifty broke out of a six-week consolidation phase and hit fresh all-time highs. The index is trading above its 21-day and 55-day EMAs, reinforcing the positive momentum. RSI at 67 indicates strong but sustainable buying interest. Key support lies at 56,100 any breakdown below this level could see the index slide further toward 55,600. On the upside, immediate resistance is seen at 57,000; a decisive move above this may open the door for a rally toward 57,500,' said Puneet Singhania, Director at Master Trust Group. He believes the overall setup remains positive, and suggests traders to look to buy on dips. Bajaj Broking Research said in a note that the Bank Nifty index formed a strong bull candle in the weekly chart as it generated a breakout above the upper band of the last 6 weeks range signaling resumption of the up move after recent consolidation. 'We expect the index to maintain positive bias and head higher towards 56,700 and 57,200 levels in the near term. The short-term structure remains constructive with immediate support placed at 55,900 levels being the Friday's breakout area. While key support is placed at 55,200 levels being the confluence of 20 days EMA and key retracement area,' it added. According to Amol Athawale, for Bank Nifty, a range breakout formation on daily charts suggests potential for further uptrend. 'For trend-following traders, the key support zones are around 56,000 and 55,500. Above these levels, the index could continue its positive momentum towards 57,200 – 57,700. However, if it falls below 55,500, the uptrend may become vulnerable. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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