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Question

Consider the following statements about the India-Saudi Arabia Bilateral relationship:

Which of the above statements is/are correct


A

2 and 4 only

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B

1, 2 and 3 only

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C

1,3 and 4 only

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D

All of these

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Solution

The correct option is C

1,3 and 4 only


The historic visit of King Abdullah to India in 2006 resulted in signing of “Delhi Declaration‟ imparting a fresh momentum to the bilateral relationship. The reciprocal visit by Prime Minister Dr. Manmohan Singh to Saudi Arabia in 2010 raised the level of bilateral engagement to “Strategic Partnership‟ and the “Riyadh Declaration‟ signed during the visit captured the spirit of enhanced cooperation in political, economic, security and defence realms.

India's strategic relations with Saudi Arabia have been affected by the latter's relations with Pakistan. Saudi Arabia supported Pakistan's stance on the Kashmir conflict and during the Indo-Pakistani War of 1971, at the expense of its relations with India. The Soviet Union's close relations with India also negatively affected Indo-Saudi relations. During the Persian Gulf War (1990–91), India officially maintained neutrality. Saudi Arabia's close military and strategic ties with Pakistan have also been a source of continuing strain.

During his recent visit to India, Saudi Foreign Minister stated that while “India is a strategic partner, Pakistan is a strategic ally and will remain so. Saudi Arabia is the largest oil supplier for India.

The bilateral Agreements and MoUs signed are as follows:

  1. Bilateral Promotion and Protection of Investments (BIPA);
  2. Agreement on Avoidance of Double Taxation and Prevention of Tax Evasion (DTAA);
  3. MoU on Combating Crime.

The visit to Saudi Arabia was part of PM Modi’s three-nation visit to Belgium,United States for Nuclear Security Summit and Saudi Arabia.

Five agreements singed with Saudi Arabia are:

  1. Agreement on Labour Co-operation: It was singed for recruitment of general category workers between the Ministry of Labour, Saudi Arabia and Ministry of External Affairs, India.
  2. Technical Cooperation Program: It was signed between Saudi Standards, Metrology and Quality Organization (SASO) and Bureau of Indian Standards (BIS).
  3. Executive Program for Cooperation in the Field of Handicrafts: It was signed between Saudi Commission for Tourism and National Heritage and Export Promotion Council for Handicraft (EPCH).
  4. MoU in the Exchange of Intelligence related to Money Laundering, Terrorism Financing and Related Crimes: It was signed between Financial Intelligence Unit of India and Saudi Arabia concerning Cooperation.
  5. Framework for Investment Promotion Cooperation: It was signed between Saudi Arabian General Investment Authority (SAGIA) and Invest India.

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