Enhanced Saudi stakes in India will work better for Indian diplomacy
India’s relations with Saudi Arabia since 2006 is an example ...
Price Stabilisation—This would insulate India from the obvious and expected volatility of the energy markets. India offers an assured market for the mainstay of Saudi Arabia’s export basket and an agreement that would ensure price stabilisation for the commodity could, therefore, prove profitable to both the parties.
Abolition of the Asian Premium—The substantial volume of crude oil purchased by India translates into an import bill that is inflated. Removal of such a ‘premium’ would aid in reducing India’s import bill.
Allowing India a buy-in as a ‘cornerstone investor’ into ARAMCO, if and when it is launched, would signal a long-term commitment on part of both the States to strengthening of ties. Enhanced defence cooperation between the two countries would not only prove beneficial but given regional realities, it would perhaps, prove more effective and binding to forge an institutional mechanism that could propel such a partnership forward.
Finally, there are two factors that New Delhi would perhaps do well to consider in cultivating the relations with the Saudis further: