India and Saudi Arabia have agreed to advance discussions on their proposed Electrical Interconnection Initiative to strengthen bilateral cooperation in the power sector. Pankaj Agarwal, Secretary in the Ministry of Power, held a virtual meeting with Nasser Al-Qahtani, Assistant Minister of Energy for Electricity Affairs of Saudi Arabia, to review progress and explore areas for further collaboration.
The discussions focused on the potential electrical interconnection between the two countries, alongside technical cooperation, knowledge sharing and the exchange of best practices in power-sector development.
India and Saudi Arabia Explore Power Sector Collaboration
During the meeting, both sides discussed opportunities to advance the proposed initiative and reaffirmed their commitment to continued engagement. The Saudi side expressed interest in cooperation on extra-high-voltage (EHV) transmission systems, particularly the technical and operational challenges of integrating higher shares of renewable energy into electricity grids.
The discussions also covered strategies to meet rising electricity demand from data centres and the need to update grid codes to address evolving power-system requirements. These areas present opportunities for India-Saudi Arabia power cooperation in transmission infrastructure, grid modernisation and renewable energy integration.
Both countries reiterated their commitment to constructive dialogue and strengthening their bilateral partnership in the power sector.
Bilateral Trade and Investment Ties
The discussions come amid substantial economic ties between the two countries. Bilateral trade reached US$41.07 billion in FY 2025-26, comprising Indian exports worth US$10.28 billion and imports worth US$30.79 billion, according to the figures provided.
India’s exports to Saudi Arabia include engineering goods, rice, petroleum products, chemicals, textiles, food products and ceramic tiles. Imports from the Kingdom include crude oil, liquefied petroleum gas, fertilisers, chemicals and plastics.
Saudi investments in India, including those associated with the Public Investment Fund and other Saudi entities, have been estimated at around US$10 billion. Major Saudi investors cited include Aramco, Zamil Group, Al Fanar, SABIC, SALIC, Abdul Latif Jameel and Petromin.
Indian investment in Saudi Arabia was reported at approximately US$3 billion as of August 2023. Indian companies operate across sectors such as construction, consultancy, telecommunications, information technology, financial services, software development and pharmaceuticals. More than 6,000 Indian companies are registered in the Kingdom, according to the supplied information.
Electrical Interconnection Initiative
The proposed India-Saudi Arabia Electrical Interconnection Initiative could create another avenue for cooperation in energy infrastructure and power-system development. Further progress will depend on continued technical discussions and decisions regarding the project’s feasibility, scope and implementation.
The latest meeting also highlighted opportunities for collaboration in grid modernisation, renewable energy integration and meeting emerging electricity demand, reinforcing the broader scope of India-Saudi Arabia power cooperation.
