Diplomatist Magazine Diplomatist August 2018

India and Saudi Arabia: An Extraordinary Trade Relationship By Saba Ahmad* J India was one of the ﬁ rst nations to establish ties with the Third Saudi State. During the 1930s, India heavily funded Nejd through ﬁ nancial subsidies. Ancient Trade: Going Back in Time Trade and cultural links between ancient India and Arabia date back to the third millennium BC. By 1000 AD, trade relations between southern India and Arabia ﬂ ourished and became the backbone of the Arabian economy. Arab traders held a monopoly over the spice trade between India and Euro pe until the rise of European imperialist empires. India and Saudi Arabia: Natural Trade Allies Trade and commerce have long been one of the strongest components of the bilateral relationship. Today, Saudi Arabia is India’s fourth-largest trading partner and eighth- largest export market. The value of the India- Saudi Arabia bilateral trade during 2016-17 was $25.079 billion, a slight decrease from the previous ﬁ gure of $26.71 billion in 2015-16. During the 2000s bilateral trade experienced sustained growth, peaking at $48.6 billion in 2013-14. Since then, however, bilateral trade has plummeted, totalling just $26.71 billion in 2015-16. eddah, the “bride of the Red Sea”, is a major port and urban centre on the western coast of the Arabian Peninsula overlooking the Red Sea. The second largest city in Saudi Arabia after Riyadh, Jeddah is an ancient trading city that also acts as a vital gateway to Mecca, situated on the maritime trade route connecting the Mediterranean with India, the Arabian Peninsula and south- east Asia. 14 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 8 • August 2018, Noida

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