Context

Recently, a high-level Indian delegation visited Saudi Arabia to strengthen cooperation in fertilizers, chemicals, health, and pharmaceuticals. India and Saudi Arabia have deepened their strategic and economic partnership over the past decade, especially in energy, investment, and trade. Fertilizers are a critical component of India’s agricultural security, as the country depends significantly on imports to meet domestic demand.

Key Agreements in Fertilizer Supply

During the three-day visit held in Dammam and Riyadh from July 11–13, several important agreements were finalized:

• Long-term agreements were signed between Saudi Arabia’s Maaden company and Indian firms including Indian Potash Limited (IPL), KRIBHCO, and CIL.
• These agreements will ensure the supply of 3.1 million metric tons of Diammonium Phosphate (DAP) fertilizer per year starting in FY 2025–26.
• The agreements are valid for five years, with a provision to extend them for another five years based on mutual consent.

This represents a substantial increase compared to earlier supplies:

• In 2023–24, India imported 1.6 million metric tons of DAP fertilizer from Saudi Arabia.
• In 2024–25, imports increased to 1.9 million metric tons, showing a 17% growth over the previous year.
• The new agreement nearly doubles current imports, enhancing India’s fertilizer security.

Both sides also agreed to expand cooperation to include other fertilizers such as Urea, which is equally important for Indian agriculture.

Investment and Research Collaboration

• Both nations agreed to explore mutual investments, including Indian public sector investments in Saudi Arabia’s fertilizer sector and Saudi investments in India.
• A joint team has been set up to work on long-term cooperation. This team will be led by the Secretary of Fertilizers on the Indian side and the Vice Minister for Mining Affairs on the Saudi side.
• Focus areas include developing India-specific customized fertilizers and promoting research on alternative fertilizers to improve sustainability and productivity.

Strengthening Economic Partnership

During the visit, the delegation met with senior Saudi officials responsible for industry and energy. Discussions centered on:

• Broadening the scope of economic ties under the Strategic Partnership Council.
• Facilitating investments in other sectors such as mining and chemicals.
• Promoting initiatives to strengthen the fertilizer supply chain between the two countries.

Saudi Arabia is a major supplier of fertilizers to India, with Maaden being the leading company in this segment.

Cooperation in Health and Pharmaceuticals

• The Indian delegation met with Saudi health officials to discuss cooperation in medical services, pharmaceuticals, digital health solutions, and knowledge exchange.
• The discussions built upon a bilateral Memorandum of Understanding on Health, signed during a recent state visit by India’s Prime Minister.
• Both countries emphasized the importance of leveraging technology to improve health systems.

Conclusion

The successful visit marks an important milestone in strengthening India-Saudi Arabia relations. The long-term fertilizer agreements will significantly improve India’s fertilizer supply stability, essential for ensuring food security and supporting farmers. Additionally, cooperation in health, pharmaceuticals, and digital solutions will create new opportunities for knowledge sharing and innovation. This deepening partnership is expected to contribute to broader economic growth and strategic cooperation between the two nations in the coming years.