India-Saudi Arabia High-Level Task Force On Investment (2023): Advancing The India-Saudi Arabia Strategic Partnership

Policy Update
Himanshi Singh

Background

The old buyer-seller connection has given way to a comprehensive strategic partnership in the bilateral relationship between the Kingdom of Saudi Arabia and India. India signed a deal with the Kingdom to create the Strategic Partnership Council (SPC) in 2019, making it the fourth nation in the world to do so after the UK, France, and China. The agreement intends to give the two nations a formal framework for consultation and collaboration on a variety of regional and global topics of shared concern.

The High-Level Task Force on Investments (HLTFI) was set up as the “engine” for promoting investments between the two countries. It was established on the backdrop of the state visit of the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, HRH Mohammed bin Salman, to India in September 2023. It may be noted that the Saudi leadership has pledged to mobilise US$100 billion in investments in the Indian economy.

Thus, the HLTFI will serve as a permanent institutional mechanism to realise this ambitious goal. In a global geostrategic environment characterised by uncertainty and unpredictability, the two countries have opted for a relationship based on strategic interdependence. In other words, the Saudi Arabian investments will contribute to India’s industrialisation drive, while Indian expertise will play a critical role in Saudi Vision 2030.

Functioning

The HLTFI is a facilitative entity, which aims to connect diplomatic intentions with actual project delivery. It was established under the co-chairmanship of the Principal Secretary to the Prime Minister of India and the Saudi Minister of Energy.

The HLTFI operates within the broader framework of the SPC, which is divided into four ministerial committees to ensure a holistic approach to cooperation. The task force specifically drives the Economy, Energy, Investment, and Technology Committee.

Table 1: Institutional Framework of the India–Saudi Strategic Partnership Council (SPC)

Ministerial Committee	Primary Focus Areas	Key Institutional Linkage
Political, Consular & Security	Diplomacy, anti-terrorism, and consular services.	Central Vigilance Commission (India) & Oversight Authority (KSA).
Defence Cooperation	Joint exercises, training, and co-development of drones.	New Ministerial Committee established in April 2025.
Economy, Energy, Investment & Tech	US$ 100 Billion Investment Roadmap, Renewables.	High-Level Task Force on Investments (HLTFI).
Tourism & Cultural Cooperation	People-to-people ties, Hajj digitisation, and heritage.	New Ministerial Committee established in April 2025.

Source: Press Information Bureau (PIB) release titled “List of Outcomes: State Visit of Prime Minister to Saudi Arabia” (April 2025)

A key policy issue linked to HLTFI concerns the Bilateral Investment Treaty (BIT). The Indian government has advocated a “modernised” BIT, which would balance the needs of investors with those of the state. Both sides are aiming to finalise the negotiations on BIT by the first quarter of 2026, which is expected to facilitate higher inflows of FDI into the country, as well as provide much-needed legal cover for the sovereign wealth funds.

Performance

The joint venture took a significant step forward during Prime Minister Modi’s visit to Jeddah on April 22, 2025, resulting in over 50 Business-to-Business (B2B) and Business-to-Government (B2G) agreements, thus translating ideas into reality.

Trade and Investment Trajectory:

Bilateral trade is dominated by energy but is increasingly diversified into aircraft, machinery, and organic chemicals. The value of trade was US$ 42.98 billion in FY 2023–24, with a growing trend in non-oil items such as aircraft spare parts and fertilisers in the first half of FY 2024–25.

Table 2: India-Saudi Bilateral Trade Performance (Key Commodities)

HS Code	Commodity Category	FY 2023–24 (US$ Million)	Strategic Significance
27	Mineral Fuels & Oils	24,480.26 (Imports)	Energy security: KSA is the 3rd largest supplier.
31	Fertilisers	1,115.68 (Imports)	Critical for Indian food security and agriculture.
88	Aircraft & Spacecraft Parts	441.17 (Exports)	Reflects rising aerospace and defence linkages.
84	Machinery & Appliances	920.02 (Exports)	Supporting Saudi industrial modernisation.
29	Organic Chemicals	1,147.02 (Imports)	Essential feedstock for Indian pharmaceutical manufacturing.

Source: The trade figures for FY 2023–24 and FY 2024–25 (April–January) Ministry of Commerce and Industry

In October 2023, the two countries signed a Memorandum of Understanding (MoU) on Electrical Interconnections, Green Hydrogen, and Supply Chains. Thereafter, an agreement was signed in April 2025 to collaborate on setting up two oil refineries in India, thus Saudi’s commitment to India’s downstream petroleum needs.

Impact

The HLTFI’s activities have profound implications for India’s energy security, infrastructure, and its role in global connectivity.

Refining and Energy Hub Ambitions:

The West Coast Refinery Project is the collaborative venture of Saudi Aramco, ADNOC (UAE), and Indian PSUs to expand refining capacities in India to meet the demand of 450 MTPA. In addition, the Saudis have pledged US$ 50 billion in total to invest in India, particularly in energy projects, with 26% of the stakes in downstream projects for reducing the country’s reliance on oil from other sources.

Renewable Energy and Hydrogen Ecosystem:

The partnership is set to create a “post-carbon order”. Being the world’s third-largest electricity producer of solar power, India can provide a substantial testing ground for the Saudis. In addition, pacts such as the ACWA Power-NTPC joint venture (5-10 GW) will contribute to India’s target of 500 GW of non-fossil fuel electricity by 2030. Moreover, the production of green hydrogen in partnership will meet India’s demand under its National Green Hydrogen Mission, which aims to produce 5 MMT of green hydrogen by 2030.

IMEC: The Connectivity Pillar:

The India-Middle East-Europe Economic Corridor (IMEC), which was launched during the 2023 G20, is the linchpin of this project. The IMEC promises to shorten the transshipment routes by 40% and add US$21.85 billion to India’s annual exports. By connecting Gulf ports to Europe via Israel and Jordan, IMEC provides a transparent and predictable alternative to other regional connectivity options.

Emerging Issues

Despite high-level momentum, the implementation of the US$100 billion roadmap faces significant headwinds.

The Konkan Land Acquisition Impasse:

The West Coast Refinery, first proposed in 2015, is “in a limbo”, as locals in the state of Maharashtra’s Konkan belt protest against it on the grounds that it would adversely impact the environment, threatening their Alphonso mango, cashew and fishery industries. With political transition also impacting the selection process, the two possible sites – Nanar and Barsu – have each had their time in the spotlight. The foreign investors, meanwhile, remain hesitant to commit their 50 per cent share in the joint venture.

Geopolitical and Regulatory Risks:

Geopolitical instability in the Red Sea area is a major threat to IMEC’s security. Additionally, despite Saudi Arabia’s relative political stability, international tensions, such as the “permanent threat” of Iran, and economic sanctions imposed on Iranian firms by the US, may have negative implications for cross-border investments.

Financial and Technical Barriers:

India’s renewable energy targets require over US$ 250 billion in investment by 2030, a figure that dwarfs current allocations. Technical gaps in Battery Energy Storage Systems (BESS) and seawater electrolysis protocols for green hydrogen remain unresolved, necessitating deeper R&D collaboration beyond mere capital flows.

Way Forward

To realise the full potential of the High-Level Task Force, the following steps are recommended:

Fast-Track Land Resolution: The Indian government and the state of Maharashtra must engage in a transparent, compensation-led dialogue with Konkan locals. Splitting the mega 60-MTPA refinery into smaller, 15-20 MTPA units could be explored to reduce the environmental footprint and land acquisition requirements.
Institutionalising the PIF Office: India should expedite the invitation for the Public Investment Fund (PIF) to set up an office in India. This would provide a direct interface for the HLTFI and streamline capital flows into startups, AI, and space technology.
Conclusion of the BIT: The Ministry of Finance should prioritise concluding the Bilateral Investment Treaty by early 2026. This treaty must include robust dispute resolution mechanisms while safeguarding India’s policy space in taxation and national security to maintain long-term investor confidence.
IMEC Coordinating Body: Establishing a central coordinating body for the IMEC is essential to harmonise trade standards, remove non-tariff barriers, and develop common digital platforms between India, Saudi Arabia, and Europe.

References

Ministry of External Affairs (2025). Prime Minister co-chairs India-Saudi Strategic Partnership Council. Ministry of External Affairs, Government of India. MEA

Press Information Bureau (2024). India-Saudi Arabia hold first meeting of the High-Level Task Force on Investments. Government of India. PIB

Press Information Bureau (2025). List of outcomes: State visit of Prime Minister to Saudi Arabia. Prime Minister’s Office, Government of India. PIB Delhi

Manohar Parrikar Institute for Defence Studies and Analyses. (2026). India–Saudi Arabia: Evolving cooperation on renewable energy. Issue Brief. MP-IDSA

Hussain, A., & Shafer, N (2025). The India-Middle East-Europe Economic Corridor: Connectivity in an era of geopolitical uncertainty. Atlantic Council. Atlantic Council

Sharma, S (2023). In a limbo – story of the mega refinery project India, Saudi Arabia want to resuscitate. The Indian Express. The Indian Express

About The Contributor

Himanshi Singh is a research & editorial intern at the Impact and Policy Research Institute (IMPRI). She holds a postgraduate degree in political science and international relations. Her research interests include foreign policy, strategic studies, public policy, national security, diplomacy, and global governance, with a particular focus on India’s external relations and evidence-based policy research.