The 75th anniversary of the establishment of bilateral relations between India and Saudi Arabia has seen the commercial ties between the two strategic partners take to new heights. According to the General Authority for Statistics, for the first three quarters of 2021, India was Saudi Arabia’s second largest trading partner.
India’s commerce department found that trade between the two countries for the current fiscal (April-November) stood at $24.9 billion, an increase of 94 per cent over the same period last year. It is particularly heartening that current trends suggest that bilateral trade will surpass pre-pandemic levels. Another notable achievement is that India is on track to achieve the global export target of $400 billion set by Prime Minister Narendra Modi. Notably, Indian exports to Saudi Arabia will comfortably exceed the set target.
After the establishment of the Strategic Partnership Council during Modi’s visit to Saudi Arabia in October 2019, the pace of engagement has maintained despite the pandemic-caused interruption in the physical movement of high-level trade and business delegations between the two countries. through virtual platforms.
The Council’s economic and investment pillar, co-chaired by Saudi Energy Minister Prince Abdulaziz bin Salman and Indian Minister of Commerce and Industry Piyush Goyal, has already seen meetings at the senior official level and under each of the four Joint Working Groups. : Industry and infrastructure; agriculture and food security; IT and Technology; and energy.
There have been many positive developments on the investment side as well. Some 745 Indian companies are registered as joint ventures or 100 percent owned entities in the Kingdom as of October 2021. These figures are spread across all sectors and amount to a cumulative invested capital of approximately $2 billion. Saudi investments in India have seen a big jump in the last two years, especially after the visit of Crown Prince Mohammed bin Salman to India in February 2019, which increased Saudi investments in India to $100 billion. Significant investments include investments by public investment funds in Reliance Retail Ventures and Reliance Jio.
India remains a top-tier investment destination, and is on track to become a top-three global economy with a nominal GDP of $8-9 trillion by 2030.
To further encourage foreign investment in India, various programs such as production linked incentive schemes and the National Single Window System have been introduced. India Investment Grid, an online portal showcasing investment opportunities across India, can be accessed at https://indiainvestmentgrid.gov.in.
Both the Embassy of India in Riyadh and the Consulate General in Jeddah continue to organize several B2B events through a virtual format that promotes trade and investment in various sectors. Events so far include collaborations in IT, pharmaceuticals, fruits and vegetables, spices, gems and jewellery, home decor and handicrafts; All have received a positive response from the Saudi business community.
A delegation from Saudi Arabia also visited the Indusfood exhibition organized by the Indian Trade Promotion Council in the National Capital Region earlier this month. The delegation explored opportunities in the food sector, which is a priority area of trade between the two countries. The Saudi India Business Network, a forum of Saudi and Indian entrepreneurs and professionals with chapters in Riyadh, Jeddah and Dammam, has also been actively involved in various initiatives under the auspices of the Embassy. We appreciate the support extended by the Saudi authorities and the Chambers of Commerce to make these initiatives a success.
As we mark India’s 73rd Republic Day on 26 January this year, there is no doubt that the socio-economic partnership between our two countries will continue to strengthen, contributing significantly to the economic progress of both countries.
- Asim Anwar is the Second Secretary (Economic and Commercial) at the Indian Embassy in Riyadh.
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