Saudi-India Labour Cooperation

Context: New initiatives aim to improve the quality of the Indian workforce in Saudi Arabia, supporting economic collaboration and labor reforms.

Importance of Saudi Arabia to India

• Historic Partnership: India and Saudi Arabia established relations in 1947, building on long-standing economic, diplomatic, and cultural ties.
• Indian Expatriate Community: Over 2.7 million Indians live in Saudi Arabia, contributing significantly to fields like construction, healthcare, education, and IT.
• Economic Impact: Remittances from Indian workers in Saudi Arabia exceed $11 billion annually, supporting the Indian economy.
• Trade and Investment: The two nations share a robust trade relationship, with joint projects like the Ratnagiri refinery bolstering economic ties.
• Hajj Pilgrimage: Saudi Arabia facilitates the pilgrimage for over 175,000 Indians each year.
• Strategic Partnership: Saudi Arabia is one of India’s key strategic partners, working together in areas like trade, investment, security, and energy.
• Energy Security: As a major supplier of crude oil and LPG, Saudi Arabia plays a crucial role in India’s energy needs.
• Security Collaboration: Both countries cooperate on counter-terrorism, intelligence sharing, and defense initiatives.
• Vision 2030: Saudi Arabia’s Vision 2030 provides opportunities for Indian companies to participate in large-scale projects, especially in infrastructure and development.

Key Areas of Cooperation

• Strategic Partnership: The 2010 Riyadh Declaration established a framework for political, security, trade, investment, and cultural cooperation.
• Security and Defense: Agreements like the 2016 MoU on counter-terrorism and a 2014 MoU for defense cooperation strengthen mutual security efforts.
• Trade and Energy: Saudi Arabia supplies 17% of India’s crude oil and 32% of its LPG. The $44 billion Ratnagiri Refinery project exemplifies their energy cooperation.
• Diverse Sectors: Collaboration extends to fertilisers, food security, renewable energy, ICT, healthcare, infrastructure, and civil aviation.

Employment & Skill Development Initiatives for Indian Workers

• Skills Verification Program: Certifies Indian workers to meet Saudi employment standards, enhancing job prospects.
• Collaborations: An MoU between Saudi Arabia’s Ministry of Human Resources and India’s NSDC facilitates knowledge sharing and workforce development.
• Labor Reform Initiative (LRI): Introduced in 2021, the LRI enhances worker mobility, contractual transparency, fair wages, and legal protections for expatriates.

Expanding Opportunities for Indian Women Workers

• Supportive Infrastructure: Women-only transport and childcare facilities have improved working conditions for Indian women.
• Female Employment: Saudi Arabia reduced female unemployment from 14.2% to 12.8% in 2024, fostering a supportive environment for women’s professional and personal growth.
• Musaned Platform: Launched in 2014, this platform offers transparent recruitment, digital contracts, and wage tracking for female workers.

Strengthening Saudi-India Labour Collaboration

• Improved Employability and Worker Protection: Initiatives in skill development and certification enhance the employability of Indian workers, while reforms ensure fair treatment and protections.
• Vision 2030 Opportunities: Demand for skilled professionals in IT, space science, and technology offers new avenues for Indian talent.
• Female Workforce Support: Expanding infrastructure for women workers will further increase female participation in Saudi Arabia’s workforce.