India, Feb. 19 -- India and Saudi Arabia are set to hold their third joint naval exercise among a range of steps to deepen bilateral defence relations, including capacity building and the first defence deal to supply artillery ammunition to the West Asian state, people familiar with the matter said.

The two sides held their first joint naval exercise - Al-Mohed Al-Hindi - in August 2021 and the second in May 2023, and preparations are underway for the third edition of the drill to be held soon, reflecting the steady growth of defence ties, the people said on condition of anonymity.

This comes after India's first defence contract with Saudi Arabia in February 2024, when state-run Munitions Indian Limited (MIL) inked a deal worth $225 mil...