India Has Potential to Boost Arms Exports to Saudi Arabia
If India succeeds in becoming a major defence supplier to Saudi Arabia, it will not only advance its goals in defence manufacturing and exports but also significantly strengthen its status as a regional and global leader, according to experts.
SputnikAt the first-ever India-GCC Joint Ministerial Meeting on Monday, India’s External Affairs Minister S. Jaishankar highlighted how crucial energy and food security are for future collaboration between India and the Gulf Cooperation Council.
Last week in Riyadh, India and Saudi Arabia's sixth Joint Committee on Defence Cooperation (JCDC) meeting focused on advancing their extensive defence partnership through deeper collaboration in military operations, training, defence industry, research, and other areas.
Saudi Arabia is strategically investing in its defence industry and R&D, aiming to allocate 50% of its defence budget domestically by 2030.
“The significant increase in Saudi defence spending is mainly driven by concerns over regional threats, prompting the pursuit of advanced missile systems and other defence equipment to enhance their security,” Ambassador Anil Trigunayat (Retd), Distinguished Fellow at the Vivekananda International Foundation told Sputnik India.
The ambassador highlighted that there are ongoing discussions between India and Saudi Arabia about joint production of specific materials, and noted that earlier this year, Munitions India Limited secured a $225 million contract to supply artillery ammunition, which includes joint training, technology transfer, and expertise exchange.
Saudi Arabia is one of India's key partners in the Persian Gulf region, and both nations are strengthening their strategic ties through comprehensive agreements and collaboration under Saudi Arabia's Vision 2030 and India's Make in India initiative, Col Rajeev Agarwal, a Military Veteran and West Asia Expert told Sputnik India.
Agarwal noted that reports previously indicated Kalyani Strategic Systems, a Bharat Forge Ltd., a subsidiary from India, received an offer to sell its Bharat 52, a 155mm/52-caliber artillery gun, to a friendly nation in a ‘non-conflict zone’, while suggesting that Saudi Arabia might be the buyer.
The military pundit highlighted that joint training and exercises are vital for defence cooperation and can lead to major defence procurements, with Saudi Arabia recently engaging in activities like “Milan Exercise,” the “Al-Mohed Al-Hindi,” and “Sada Tanseeq.”
Meanwhile, China has also established joint ventures in Saudi Arabia, manufacturing missiles and other defence equipment, the ambassador added.
Despite the US being Saudi Arabia’s main security partner and arms supplier, China boosted its arms transfers to Saudi Arabia by nearly 400% from 2016 to 2020.
The US enforces restrictions on defence supplies, especially in relation to Israel, with arms sales being shaped by the need to uphold
Israel’s military dominance, the ambassador noted.
Trigunayat pointed out that the “US, a key defence supplier to Saudi Arabia, is unlikely to cede this market easily while negotiating a security agreement that could include normalisation with Israel.”
Additionally, Reuters also reported that the proposed Israel-Saudi normalisation deal, part of a larger Middle East "grand bargain," continues to be elusive.
Should India Leverage Western Defence Restrictions for Saudi Arms Sales?
On the other hand, India is concentrating on
self-reliance in defence and exploring export opportunities to nations like the UAE and Saudi Arabia, while both Saudi Arabia and the UAE are actively
pursuing membership in BRICS and the Shanghai Cooperation Organization to forge new partnerships, the ambassador reckoned.
Trigunayat emphasised that Saudi Arabia might seek to acquire Indian defence products like BrahMos missiles, and Akash missiles, with additional potential for expanding exports of non-combat and soft army equipment.
“With Western support in defence supplies becoming hard, Saudi Arabia could look at India for key weapon platforms like the fighter aircraft LCA Tejas and even warships, in the coming years,” the colonel added.
Meanwhile, the US has stopped supplying Riyadh with
various military equipment due to the Yemen conflict, while Germany's arms export restrictions have complicated Riyadh's acquisition of Leopard 2A7 tanks and additional Eurofighters, although the ban on Eurofighters was lifted in early January 2024.
As India intensifies its defence manufacturing efforts and positions itself as a significant alternative, it stands to gain by making Saudi Arabia a key export partner, while Saudi Arabia benefits from India's role as a trusted defence supplier, enhancing their strategic partnership, he added.
Consequently, according to Agarwal, establishing itself as a key defence supplier to Saudi Arabia would not only advance India's defence manufacturing goals but also strengthen its role as a regional and global leader.
India’s defence sector may benefit from increased engagement with Saudi Arabia, offering new markets and opportunities for growth, the ambassador concluded.