India and Saudi Arabia Strengthen Economic and Startup Synergies: Piyush Goyal Meets Khalid Al Falih

As India cements its place among the world’s fastest-growing economies, its partnership with Saudi Arabia is emerging as one of the most strategically significant alliances shaping the next decade of economic growth. This week, Union Minister of Commerce and Industry Piyush Goyal met with Khalid Al Falih, Saudi Arabia’s Minister of Investment, to chart a renewed roadmap for cooperation across trade, startups, technology, and energy.

The meeting, which reflected the warmth and trust between New Delhi and Riyadh, wasn’t just another diplomatic exchange — it was a glimpse into how two emerging powerhouses are jointly redefining global investment flows.

Goyal, sharing his thoughts on social media, called it a “pleasure to meet Minister Khalid Al Falih and his delegation,” emphasizing that both sides discussed ways to “advance trade and investment partnerships built on mutual trust and shared prosperity.”

A New Era for Startup Collaboration

What stood out in the discussions was the growing focus on India’s startup ecosystem, now recognized as one of the most dynamic and diversified in the world. Saudi Arabia’s Public Investment Fund (PIF) and other major Saudi entities have already been active investors in India, helping fuel the rise of several technology and consumer ventures.

To date, Saudi investments in India have crossed USD 10 billion, and the list of beneficiaries includes some of India’s biggest names — Reliance Jio Platforms (USD 1.5 billion), Reliance Retail Ventures (USD 1.3 billion), and HealthifyMe (USD 75 million Series C funding).

Beyond tech, Saudi’s SALIC (Saudi Agricultural & Livestock Investment Company) has been steadily deepening its engagement in India’s food and agri-tech sectors, backing companies like LT Foods and Daawat Foods. These investments underscore a deliberate shift in strategy — one that’s no longer just about energy or infrastructure, but about innovation, digital transformation, and sustainable value creation.

Trade Ties Growing Beyond Oil and Gas

Over the years, India and Saudi Arabia have steadily expanded their trade basket beyond the traditional energy domain. Today, Saudi Arabia ranks as India’s fourth-largest trading partner, while India stands as the Kingdom’s second-largest.

In FY 2024–25, bilateral trade touched an impressive USD 41.88 billion. India’s exports accounted for USD 11.76 billion, while imports from Saudi Arabia were valued at USD 30.12 billion.
Interestingly, a significant USD 4.5 billion chunk of trade now comes from chemicals and petrochemicals, reflecting Riyadh’s ongoing diversification beyond oil.

On the investment side, Saudi Arabia’s direct investments in India total around USD 3.15 billion, led by major players such as ARAMCO, SABIC, ZAMIL, E-holidays, and the Al Batterjee Group.

Meanwhile, India’s corporate giants have also been expanding into the Saudi market. From L&T and TCS to Wipro, Tata Motors, Tech Mahindra, and Vedanta, Indian companies have invested an estimated USD 3 billion in Saudi Arabia as of August 2023 — a sign of deepening two-way economic interdependence.

High-Level Mechanisms to Drive Investments

One of the strongest institutional mechanisms driving this partnership has been the High-Level Task Force on Investment (HLTFI), set up during the historic 2023 visit of Crown Prince and Prime Minister HRH Mohammed bin Salman to India.

Since its creation, the HLTFI has been instrumental in turning intent into action. Two key meetings — held in July 2024 and April 2025 — have not only advanced cooperation in priority sectors but also led to the signing of over 50 Memorandums of Understanding (MoUs) during the India-Saudi Investment Forum 2023.

These agreements span a wide range of areas — from technology innovation and renewable energy to logistics, tourism, and healthcare — all aimed at building a diversified and future-ready partnership.

Energy, Defence, and Skills: Expanding the Strategic Canvas

Energy remains a cornerstone of the India–Saudi relationship. In FY 2023–24, Saudi Arabia supplied 33.35 million metric tonnes of crude oil to India, meeting about 14.3% of its total crude imports. However, the collaboration now extends far beyond hydrocarbons.

The defence partnership has gained momentum too — with a USD 225 million export deal for ammunition signed in 2024, marking a milestone in India’s growing role as a defence exporter.

At the same time, human capital and skills development have emerged as new frontiers of cooperation. Following the Skill Verification Program signed between India’s National Skill Development Corporation (NSDC) and Saudi Arabia’s Takamol Holding in 2022, both countries have been actively working to align workforce standards and expand employment opportunities for Indian professionals in Saudi Arabia.

A Partnership Built on Shared Vision

What’s unfolding between India and Saudi Arabia is not just economic diplomacy — it’s a convergence of visions. India, with its innovation-driven economy and booming startup scene, and Saudi Arabia, with its Vision 2030 roadmap to diversify beyond oil, are finding common ground in technology, entrepreneurship, and sustainable development.

The meeting between Piyush Goyal and Khalid Al Falih was a reaffirmation of that shared ambition — to transform two vibrant economies into co-creators of the future global growth story.

As Minister Goyal put it, the goal is simple yet profound — to strengthen partnerships “built on mutual trust and shared prosperity.”

And as the latest engagement shows, that goal is steadily translating into action — through strategic investments, thriving startups, energy collaboration, and a people-centric approach to economic development.