India could not be influenced even at the height of the Russia-Ukraine war, and it is expected that New Delhi would continue to engage Iran with the same spirit of engaging Israel. Similarly, cultivating United Arab Emirates (UAE) alone cannot fulfil India’s dream of Global South leadership, and equal importance must be given to Saudi Arabia, the leader of the Arab World and Organisation of Islamic Cooperation (OIC). 

Widening Saudi-India Bonding 

Pakistan has exploited the strategic space, trying to regain its importance in West Asia by entering into a defence pact with Riyadh. Irrespective of which powers may be taking a cue from Saudi Arabia and US’ decision to appoint Islamabad as a messenger between itself and Iran, New Delhi is geographically too close to neglect the region. Saudi Arabia is part of India’s extended neighbourhood and through its strategic depth presents an opportunity for India to play a meaningful role in West Asia. Unlike the UAE, which was at the receiving end of Iran’s retaliatory attacks, Saudi Arabia encountered fewer attacks from Tehran and along with Oman has emerged as a winner from the current crisis. 

Unlike the Pakistan-Saudi relationship, India’s ties with Riyadh have evolved over the past decade, and there is a necessity to lift it to the next stage by paying it adequate attention. Over the years, the relationship has rapidly expanded beyond traditional oil trade into counter-terrorism, defence cooperation, and joint infrastructure initiatives.

Bilateral trade hovers around US$ 43 billion annually, making Saudi Arabia one of India's largest trading partners. Saudi sovereign wealth funds, such as the Public Investment Fund (PIF), are heavily invested in Indian startups and infrastructure. Furthermore, Saudi Arabia has committed to massive long-term investments across sectors like refining, petrochemicals, and renewable energy.

The India-Saudi Arabia defence partnership has evolved into a strategic and comprehensive alliance, featuring expanding joint military exercises, major equipment procurement, and robust industrial collaboration. The relationship is coordinated by a Ministerial Committee on Defence Cooperation under the Strategic Partnership Council. 

India has offered to train the Saudi Armed Forces in specialised areas, including cyber security, IT, disaster management, and tactical communication. Now India needs to actively push defence industry exports, including missiles like BrahMos. What India can offer to Riyadh, Pakistan is not in a position to offer. Saudi Arabia on its part needs to invest in the defence corridors of India and benefit from Indian expertise. The recent West Asia crisis has proved the limitations of US defence infrastructure in the region and Gulf states have realised the necessity to diversify defence partners. 

This provides a golden opportunity for India to present its defence hardware to Saudi Arabia, Kuwait, Bahrain, besides the UAE (with whom defence ties have been growing during the last decade). Oman is India’s defence partner in the Gulf and there is a historic opportunity to expand the defence industry partnership. For Gulf states, India is a trusted partner and produces defence hardware that suits their needs at a cost that is reasonable compared to the West. On the other hand, Pakistan does not have a defence industry worth its salt and China cannot be a trusted partner. Besides, Chinese defence hardware are yet to prove its worth in a prolonged war as witnessed in the recent West Asia crisis.

India’s Iran Connection

India has a civilisational connect with Iran dating back centuries that has influenced language, food habits, culture, and more. As civilisational states, both India and Iran have natural synergy and comfort. Years of US sanctions adversely impacted the India-Iran oil trade and possible Indian investments in Iran. The Persian Gulf country possesses a big market with a sophisticated and skilled population. While Iranian seminaries have often been in the news, Iran has produced some of the best scientists and engineers over decades. Iran serves as a geopolitical counterweight to Pakistan in the region and has countered Pakistan’s attempts to draft anti-India resolutions in organisations like the OIC. 

Iran is critical to India’s regional connectivity plans as it provides a parallel option to China’s Belt and Road Initiative. Developing the Shahid Beheshti Port at Chabahar is a cornerstone of India's regional strategy. It provides India with a direct maritime trade route to Afghanistan and Central Asia, effectively bypassing Pakistan. Despite the threat of Western sanctions, India and Iran signed a historic 10-year contract to operate the Chabahar port, underscoring both nations' commitment to the project. The International North-South Transport Corridor (INSTC), a 7,200- km multimodal network via Iran, is designed to reduce transit times and trade costs between India, Russia, and Central Asia. The full operationalisation of INSTC is necessary for India’s trade with Russia.  

Iran historically served as one of India's top three crude oil suppliers and as sanctions get lifted, India should be the first mover to resume imports and invest in Iran’s oil assets. There is a huge opportunity for Indian investors to invest in Iran’s infrastructure sector once sanctions are lifted. The relationship is far too important to be treated as an after-thought.  

(The writer is a commentator on geopolitics. Views expressed are personal.)