New Delhi/Riyadh – April 2025
India and Saudi Arabia are forging a stronger strategic partnership through major joint ventures in the refinery and petrochemical sectors, marking a new chapter in their growing economic collaboration. These initiatives reflect a shared vision to bolster energy security, attract foreign investment, and drive sustainable industrial growth in both countries.
Key Highlights:
- Joint refinery and petrochemical projects under discussion.
- $50 billion mega refinery project on India’s west coast revived.
- Saudi Aramco eyes new refinery investments in Andhra Pradesh and Gujarat.
- Bilateral trade touches $43 billion in FY 2023–24.
- Focus on clean energy, hydrogen, and technology as part of Saudi Vision 2030.
India-Saudi Arabia Energy Collaboration: What’s Happening?
India and Saudi Arabia are intensifying their economic cooperation by planning joint ventures in the oil refining and petrochemical space. Prime Minister Narendra Modi’s recent high-level engagements in Riyadh highlighted the importance of this partnership, especially in ensuring long-term energy security and economic resilience for both nations.
At the core of this collaboration is the revival of a $50 billion refinery and petrochemical complex in Maharashtra. This mega project involves Saudi Aramco, ADNOC (Abu Dhabi National Oil Company), and a consortium of Indian oil firms. The project, originally delayed due to land acquisition issues, is now back on track, with dedicated joint working groups accelerating its progress.
Saudi Aramco’s Growing Presence in India
In addition to the west coast refinery, Saudi Aramco is exploring further investments:
- A new refinery project with Bharat Petroleum Corporation Ltd (BPCL) in Andhra Pradesh.
- Another collaboration with ONGC for a refinery setup in Gujarat.
These investments are strategically aimed at ensuring a stable and long-term market for Saudi crude oil in Asia’s third-largest economy, even as India diversifies its energy sources.
Bilateral Trade and Investment on the Rise
Economic ties between the two countries continue to grow:
- India is Saudi Arabia’s second-largest trading partner.
- Saudi Arabia ranks as India’s fourth-largest trade partner, with bilateral trade reaching $43 billion in FY 2023–24.
This robust trade partnership is paving the way for more cross-sectoral investments and joint ventures.
Diversifying Beyond Oil: Clean Energy & Technology
India and Saudi Arabia are also engaging in forward-looking sectors such as:
- Green and blue hydrogen production
- Fintech and digital economy
- Advanced industrial technologies
These initiatives align with Saudi Arabia’s Vision 2030 and India’s Make in India and Energy Security goals, aiming to future-proof their economies and reduce dependence on conventional fossil fuels.
Strategic Importance of the Collaboration
This collaboration is more than just economic — it strengthens geopolitical alignment, promotes regional stability, and creates jobs and innovation opportunities in both nations. With massive infrastructure plans, shared investment goals, and a commitment to sustainable growth, the India-Saudi Arabia energy alliance is poised to shape the future of the global energy landscape.