Prime Minister Narendra Modi’s visit to Saudi Arabia would be as much about trade relations as attracting investment from the Middle Eastern country. Although the trade between both nations has stagnated at around $45 billion since 2014, India and Saudi Arabia have witnessed a boost in investment ties, with the Middle Eastern kingdom’s contribution to India’s FDI stock growing over 60-fold in a decade.
In 2014, Saudi Arabia was ranked 47 with $51 million worth of investments in India, which rose to 39 with an investment of $316 million in 2019. But in 2020, the investment from Middle Eastern countries grew 10-fold to $3.13 billion, with Saudi Arabia having a 0.6 percent share in India’s FDI inflows.
The position has since slipped. Post pandemic, investments from Saudi Arabia have grown at a slower pace. The share of Saudi Arabia in overall investments has slipped from 0.6 percent in 2020 to 0.45 percent in 2024.
India has been able to attract FDI worth only $113 million since the pandemic.
Saudi Arabia has slipped three ranks to 20 among nations that have invested in India since 2000.
Prime Minister Narendra Modi is on a two-day official visit to Saudi Arabia, his third in a decade.
“India values our historic relations with Saudi Arabia. Bilateral ties have gained significant momentum in the last decade,” the prime minister had written on social media.
