What’s in Today’s Article?

• India-Saudi Arabia Bilateral Relations Latest News
• Introduction
• Historical Background
• Political Relations
• Economic and Trade Relations
• Defence and Security Cooperation
• Indian Diaspora in Saudi Arabia
• Cultural and Tourism Linkages
• Key Outcomes of PM Modi's April 2025 Visit
• India-Saudi Arabia Bilateral Relations FAQs

India-Saudi Arabia Bilateral Relations Latest News

• During Prime Minister Narendra Modi’s visit to Jeddah, Saudi Arabia, the two countries are set to sign at least six memoranda of understanding (MoUs).

Introduction

• India and Saudi Arabia share a deep-rooted relationship based on historical, cultural, economic, and strategic ties. 
• With increasing global uncertainty and regional transformations, the bilateral engagement between the two nations has grown stronger, culminating in Prime Minister Narendra Modi's April 2025 visit to Riyadh. 
• The visit emphasized economic cooperation, investment flows, energy partnerships, and socio-cultural linkages.

Historical Background

• India and Saudi Arabia have had cordial relations dating back centuries, largely shaped by trade and the movement of people. 
• Bilateral diplomatic relations were formally established in 1947, and they have progressively deepened, particularly in the 21st century. 
• Landmark visits, such as those of King Abdullah in 2006 and PM Modi in 2016 and 2019, have institutionalized cooperation through strategic agreements.

Political Relations

• The relationship was upgraded to a ‘Strategic Partnership Council’ during PM Modi's visit in 2019, institutionalizing high-level dialogue. 
• Both nations support a multipolar world order and cooperate in multilateral platforms such as the G20, UN, and OIC.

Economic and Trade Relations

• Bilateral trade ties have steadily grown over the years.
• India is the 2nd largest trade partner of Saudi Arabia whereas Saudi Arabia is the 5th largest trading partner of India. 
• In FY 2023-24,bilateral trade stood at USD 42.98 billion, with Indian exports at USD 11.56 billion and imports at USD 31.42 billion.
• India imports about 18% of its crude oil from Saudi Arabia. The kingdom is a key source of petrochemical products and fertilizers.
• India’s exports to Saudi Arabia include rice, machinery, textiles, chemicals, and IT services.

Defence and Security Cooperation

• Defence ties have witnessed a boost through joint naval exercises (Al-Mohed Al-Hindi), counter-terrorism cooperation, and intelligence sharing. 
• Both countries have an interest in regional stability, especially in the context of West Asia and the Indian Ocean Region.

Indian Diaspora in Saudi Arabia

• Over 2.4 million Indians reside in Saudi Arabia, making them the largest expatriate group.
• The community is engaged in a range of professions and plays a crucial role in the Saudi economy.
• India is among the top beneficiaries of Hajj quotas, with more than 1.75 lakh pilgrims participating annually.

Cultural and Tourism Linkages

• Initiatives in cultural exchanges, tourism cooperation, and the Saudi Vision 2030 reforms (which now allow more open tourism policies) have contributed to closer people-to-people ties.

Key Outcomes of PM Modi's April 2025 Visit

• PM Modi’s visit to Saudi Arabia in April 2025 focused on strengthening economic, energy, and strategic cooperation. The key outcomes include:
• Signing of Six MoUs and Agreements
  • Energy Cooperation: Enhanced collaboration in oil exploration, refining, and renewable energy including green hydrogen.
  • Digital Infrastructure: Joint efforts to build robust digital public infrastructure and innovation-based partnerships.
  • Investment in Critical Sectors: Agreements focusing on the investment of Saudi sovereign wealth into India’s infrastructure, logistics, and energy corridors.
  • Pharmaceutical Trade: Strengthening supply chains and approvals for Indian pharma in Saudi markets.
  • Fintech and Banking: Frameworks to facilitate fintech collaboration and simplified banking channels for NRIs.
  • Cultural Exchange: New initiatives in tourism, film, and education under Vision 2030.
• Strategic Talks on Hajj Quota and Labour Welfare
  • PM Modi raised the issue of increasing the Hajj quota for Indian Muslims, citing the growing demand and demographic representation.
  • Agreements were made to strengthen the framework for labour protection and dispute redressal for Indian workers.
• Expansion of Strategic Partnership Council
  • New working groups on defence technology, space, and semiconductor manufacturing were added under the council’s purview.

India-Saudi Arabia Bilateral Relations FAQs

Q1. What is the Strategic Partnership Council between India and Saudi Arabia?

Ans. It is a high-level bilateral mechanism created in 2019 to coordinate cooperation in key areas such as energy, trade, security, and technology.

Q2. What are the key sectors of economic cooperation between India and Saudi Arabia?

Ans. Crude oil, petrochemicals, digital technology, infrastructure, and pharmaceuticals are the primary sectors.

Q3. How many Indians currently live in Saudi Arabia?

Ans. Over 2.4 million Indians reside in Saudi Arabia, forming the largest expatriate group in the Kingdom.

Q4. What was a major cultural outcome of PM Modi’s 2025 visit to Saudi Arabia?

Ans. The signing of MoUs to expand collaboration in film, tourism, and educational exchanges.

Q5. How does Saudi Arabia support India's energy needs?

Ans. Saudi Arabia supplies about 18% of India’s crude oil imports and is also engaging in renewable and green hydrogen projects with India.

Source: TH | MEA

What’s in Today’s Article?

• Gold Prices Surge Latest News
• Reasons Behind Gold Prices Crossing ₹1 Lakh-Mark
• Indian Gold Market: Size and Significance
• Gold Prices Surge FAQs

Gold Prices Surge Latest News

• Gold prices have crossed ₹1 lakh per 10 grams for the first time, driven by a surge in international markets after US President Donald Trump announced plans to overhaul the Federal Reserve. 
• In Mumbai, 24-karat gold was priced at ₹1,01,350 and 22-karat at ₹92,900 per 10 grams. The rise reflects gold's status as a safe haven amid global market volatility, concerns over Trump's tariff plans, and potential inflation due to Fed changes.

Reasons Behind Gold Prices Crossing ₹1 Lakh-Mark

• Surge in Global Gold Prices
  • Gold prices have surged globally, crossing $3,400 per ounce, contributing to a significant rise in India. 
  • This surge is attributed to a weakening US dollar, making gold more affordable for foreign currency holders.
    • The US dollar continued to weaken, falling to its lowest level since 2022. As tensions between Trump and the Fed mount, global investors are retreating from US assets. 
    • A weaker dollar boosts gold demand, as it becomes cheaper for international investors.
• Uncertainty Surrounding US Monetary Policy
  • The rally is fueled by renewed uncertainty over US monetary policy, following President Trump’s plans to overhaul the Federal Reserve.
    • Concerns about the Fed's independence have created uncertainty in financial markets. 
  • His criticism of Fed Chairman Jerome Powell and calls for lower interest rates have intensified market concerns.
• Geopolitical Tensions and Inflation Concerns
  • Escalating geopolitical risks, such as tensions over Russia-Ukraine, and persistent inflation fears are also driving gold's safe-haven appeal. 
  • The US Federal Reserve has warned that tariffs could disrupt its economic objectives, further supporting gold demand.
• Central Bank and Institutional Demand
  • The gold rally is further supported by increased buying from China, global central banks, and institutional investors, as well as growing concerns over the US economic outlook and debt crisis.
• Analysts Insight
  • Analysts highlight that escalating tariff tensions, the uncertain US economic outlook, and continued buying activity from major global players are adding momentum to gold’s upward trajectory.

Indian Gold Market: Size and Significance

• India is the second-largest gold market in the world, following China. 
• In 2024, gold demand in India reached 802.8 tonnes, up from 761 tonnes in 2023. China’s demand was 985 tonnes.

Value of Gold Demand in India

• The total gold demand value in India surged by 31% in 2024, reaching ₹5.15 lakh crore compared to ₹3.92 lakh crore in 2023, according to a World Gold Council (WGC) report.

Cultural and Financial Importance of Gold

• Gold holds a crucial cultural role in India, often passed down through generations. 
• It is commonly used as a financial asset during times of need, such as medical expenses or college fees, with individuals pledging gold jewelry to secure loans.

Gold Loans: A Popular Financing Option

• Economic slowdowns and uncertainties, such as trade wars and inflation, have driven an increase in gold loans as a stable financial solution. 
• The growth of digital platforms, apps, and fintech solutions has made gold loans more accessible, even in remote areas, further boosting their popularity.

Gold Prices Surge FAQs

Q1. Why did gold prices cross ₹1 lakh per 10 grams?

Ans. Gold prices surged due to global market volatility and uncertainty over US monetary policy under Trump.

Q2. What is driving the gold price rally?

Ans. The rally is fueled by a weak US dollar, geopolitical risks, and concerns over inflation and US economic policy.

Q3. How significant is the Indian gold market?

Ans. India is the second-largest gold market globally, with a demand of 802.8 tonnes in 2024, following China.

Q4. How do gold loans work in India?

Ans. Gold loans have become popular due to economic uncertainties and are accessible through fintech platforms in remote areas.

Q5. Why is gold considered a safe haven asset?

Ans. Gold is a stable asset during financial uncertainty, geopolitical risks, and inflation, driving its demand globally.

Source: IE | BS

What’s in Today’s Article?

• Pahalgam Terror Attack Latest News
• About Pahalgam
• Baisaran: A Scenic Gem Near Pahalgam
• The Resistance Front (TRF)
• Pahalgam Terror Attack – Analysis
• Pahalgam Terror Attack FAQs

Pahalgam Terror Attack Latest News

• Twenty-eight people, mostly tourists, were killed in a terrorist attack in Baisaran Valley, a scenic spot in Pahalgam, Anantnag district of J&K.
• This is the deadliest since the abrogation of Article 370 in 2019. The remote, high-altitude area—accessible only by foot or horseback—posed challenges for rescue efforts.
• The Resistance Front, an ISI-backed proxy of Lashkar-e-Taiba, claimed responsibility for the assault.

About Pahalgam

• Pahalgam is a popular hill station located in the Anantnag district in the southern part of the Kashmir Valley, Jammu and Kashmir. 
• It lies approximately 90 km from Srinagar International Airport.

Tourist Attractions

• Known as the ‘Valley of Shepherds’, Pahalgam offers lush mountain trails, dense forests, and the scenic Lidder River. 
• Key attractions include:
  • Amarnath Cave Temple: A revered Hindu shrine.
  • Aru Wildlife Sanctuary: Home to species like brown bears and musk deer.
  • Betaab Valley: Named after the Sunny Deol-starrer film Betaab.
  • Tulian Lake: A serene alpine lake popular with trekkers.
  • Baisaran Valley: A picturesque meadow drawing many tourists, often called “mini-Switzerland.”

Baisaran: A Scenic Gem Near Pahalgam

• Located just 5 km from Pahalgam, Baisaran is one of the region’s most popular tourist and trekking destinations. 
• Accessible only by foot or ponies, the lack of motorable roads made rescue operations difficult during the recent terrorist attack.

Mini Switzerland of Kashmir

• Baisaran is often referred to as ‘Mini Switzerland’ due to its long, dark meadows and striking resemblance to European landscapes. 
• The Pahalgam Development Authority highlights its eye-catching beauty, dense pine forests, and snow-capped mountain backdrop.

Ideal for Trekkers and Campers

• The meadow serves as a key campsite for trekkers heading to Tulian Lake, which offers breathtaking views of Pahalgam and the Lidder Valley.

A Year-Round Tourist Destination

• Baisaran’s picturesque scenery, including views of the Lidder River, attracts visitors in both summer and winter.

The Resistance Front (TRF)

• The Resistance Front (TRF) is a militant group that emerged as an offshoot of Lashkar-e-Taiba (LeT) shortly after the abrogation of Article 370 in August 2019.
• It quickly evolved into an active terror outfit, absorbing militants from various factions, particularly LeT.

Designation as a Terrorist Organisation

• In January 2023, the Ministry of Home Affairs declared TRF a terrorist organisation under the Unlawful Activities (Prevention) Act (UAPA). 
• The ministry cited its involvement in psychological operations on social media to radicalize and incite the people of Jammu and Kashmir against the Indian state.

Activities and Targets

• Since its formation, TRF has been responsible for several terror attacks in the Kashmir Valley, specifically targeting tourists, minority Kashmiri Pandits, and migrant labourers.

Pahalgam Terror Attack – Analysis

• The terrorist attack in Pahalgam, which killed over two dozen civilians, is the deadliest targeting civilians since the 26/11 Mumbai attacks. 
• It highlights a major internal security challenge with significant external implications for India.

Tourism as a Symbol of Normalcy Disrupted

• Since the abrogation of Article 370 in August 2019, a surge in tourism to Jammu & Kashmir was viewed as a sign of peace and prosperity. 
• The attack shatters this image and revives the Valley’s painful memories of violence.

Terror Timing and Global Attention

• The attack occurred while US Vice-President JD Vance was visiting India and PM Modi was on a diplomatic trip to Saudi Arabia, a timing that echoes previous incidents aimed at international publicity.
  • March 2000: 36 Sikhs were massacred in Anantnag just before President Clinton’s visit.
  • May 2002: The Kaluchak attack coincided with US official Christina Rocca’s visit, killing 23 people including women and children.

Kashmir and Pakistan’s Provocative Rhetoric

• The attack followed a provocative statement by Pakistan Army chief Gen. Asim Munir, who called Kashmir Pakistan’s "jugular vein."

Pahalgam Terror Attack FAQs

Q1. What happened in Pahalgam's Baisaran Valley?

Ans. A terrorist attack killed 28 tourists in Baisaran Valley, Anantnag, marking the deadliest assault since Article 370's abrogation.

Q2. Who is responsible for the Pahalgam attack?

Ans. The Resistance Front (TRF), linked to Lashkar-e-Taiba and backed by ISI, claimed responsibility for the deadly attack.

Q3. Why is Baisaran significant for tourists?

Ans. Baisaran, known as “Mini Switzerland,” is a scenic, remote meadow popular for trekking and camping near Pahalgam.

Q4. What is TRF and its role in Kashmir?

Ans. TRF is a militant group targeting civilians in Kashmir, designated a terrorist outfit under UAPA in January 2023.

Q5. Why is the Pahalgam attack geopolitically significant?

Ans. It disrupts Kashmir’s tourism-driven normalcy and occurred during key international diplomatic visits, gaining global attention.

Source: IE | LM | ABP