Maeeshat News Network | New Delhi/Riyadh

In a dynamic push to strengthen bilateral economic ties, India and Saudi Arabia are intensifying collaboration in the aviation and cargo sectors, fuelled by strategic investments, expanding airline operations, and booming tourism and trade. This partnership aligns with Saudi Arabia’s Vision 2030 diversification agenda and India’s ambitious aviation growth trajectory, cementing both nations as pivotal players in the global air transport ecosystem.

A Thriving Private Aviation Market

The private aviation sector between India and Saudi Arabia is witnessing robust growth, driven by rising demand from high-net-worth individuals (HNIs) and corporate travellers. India’s private jet fleet, currently comprising approximately 140 business jets, is projected to grow at a compound annual growth rate (CAGR) of 10-12% over the next decade, bolstered by infrastructure initiatives like the UDAN scheme and airport modernization programs. Saudi Arabia, with over 200 registered business jets, is capitalizing on Vision 2030 mega-projects, such as NEOM, to solidify its position as a regional aviation hub.

Bilateral Trade and Strategic Investments

Aviation trade between the two nations is flourishing, with India exporting aircraft and aerospace components worth USD 1.12 billion to Saudi Arabia in FY2024-25, while importing USD 839.05 million in similar goods. A landmark moment came during Prime Minister Narendra Modi’s visit to Saudi Arabia in April 2025, which spotlighted aviation through the India-Saudi Arabia Strategic Partnership Council. Discussions highlighted a potential USD 100 billion Saudi investment in Indian sectors, with aviation as a cornerstone. Opportunities include joint ventures in maintenance, repair, and overhaul (MRO) facilities—projected to grow from USD 1.7 billion in 2023 to USD 2.4 billion by 2028—and sustainable aviation fuel initiatives.

Expanding Airline Connectivity

Saudi carriers are aggressively expanding into India. Flyadeal, Saudi Arabia’s budget airline, plans to launch services to India within the next 12 months as part of a broader initiative to add 25 new routes in the coming 3-4 months. This expansion will enhance connectivity, especially as Saudi Arabia projects 1.8 million Indian tourists in 2025, positioning India as the fourth-largest source of airline capacity growth for the Kingdom.

Defence and Aerospace Synergies

Defence-related aviation ties are also deepening. Saudi Arabia’s participation in Aero India 2025, India’s premier aerospace exhibition, underscored growing collaboration. In 2024, India’s state-owned Munitions India Limited secured a USD 225 million export deal with Saudi Arabia for ammunition supplies, reflecting the expanding scope of aviation and defence partnerships. The sixth meeting of the Joint Committee on Defence Cooperation in September 2024 further reinforced these ties.

Cargo Sector: Powering Logistics and Trade

The air cargo sector is a key growth driver, with Saudi Arabia’s market projected to rise from USD 2.87 billion in 2024 to USD 5.03 billion by 2030. Saudia Cargo is expanding its presence in India, operating two freighter flights to Mumbai and negotiating additional traffic rights to increase passenger belly hold capacity to five flights while adding freighter services to Mumbai and potentially Delhi.

India’s evolving air cargo landscape, critical for exports and supply chains, complements these efforts. Indian Commerce Minister Piyush Goyal’s visit to Saudi Arabia in November 2024 spurred new trade and investment collaborations, including logistics and renewable energy, which indirectly bolster cargo operations. Riyadh Air’s partnership with SATS Saudi Arabia in August 2025 aims to enhance cargo handling across Saudi airports, strengthening Indo-Saudi freight routes. Swissport’s expansion to 13 Saudi airports in June 2025 further improves ground handling, streamlining cargo operations.

Economic Context and Future Outlook

Bilateral trade reached USD 43.3 billion in FY2023-24, with aviation and cargo as key pillars. The second meeting of the Strategic Partnership Council in April 2025 established a ministerial committee on defence cooperation, extending to aviation synergies. India’s 2.6 million-strong diaspora in Saudi Arabia further deepens cultural and economic bonds.

Looking ahead, experts foresee sustained momentum, with potential investments from Saudi Arabia’s Public Investment Fund (PIF) in Indian aviation firms and joint technology ventures. As both nations prioritize sustainable and efficient air transport, this partnership is poised to reshape regional logistics and travel, fostering economic growth and strategic alignment in the Indo-Arab corridor.