India and Saudi Arabia have agreed to collaborate on building two oil refineries in India, a move aimed at strengthening their energy partnership amid global economic pressures.
This initiative is part of a larger effort to boost cooperation in sectors such as tourism and technology. The agreement was announced after discussions between Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in Jeddah.
Both countries face economic uncertainties, with India’s growth slowing and Saudi Arabia contending with low oil prices and external tariff policies. The new refineries are expected to offer greater energy security and economic stability for both nations.
While Saudi Aramco has previously sought to enter India’s refining market, its involvement in these new projects remains unclear. Historically, Saudi Arabia has been a key oil supplier to India, though its share has declined as India diversifies its imports.
India’s recent legislative reforms, including the Oilfield (Regulatory and Development) Amendment Bill, aim to attract more investment and modernize the country’s oil and gas sector.
This partnership marks another step in ongoing efforts by both nations to strengthen economic ties and adapt to shifting global conditions.