Modi visit to Riyadh added new dimension to Saudi-India ties

STRATEGIC PARTNERSHIP: Custodian of the Two Holy Mosques King Salman with Indian Premier Narendra Modi in Riyadh.
Updated 15 August 2016
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Modi visit to Riyadh added new dimension to Saudi-India ties

RIYADH: India’s engagement with the Arabian peninsula, especially with Saudi Arabia, dates back to several millennia when traders and sailors from South Asia used to sail across the Arabian Sea, in boats made of Malabar wood.

The relationship got reinforced and strengthened over a period of time with robust exchanges and there emerged a strong symbiotic relationship, which has stood the test of time and is growing stronger and stronger.
Moreover, “the historic visit of Prime Minister Narendra Modi to Riyadh in April this year at the invitation of Custodian of the Two Holy Mosques King Salman is seen as a turning point in our growing engagement with Saudi Arabia,” said Ahmad Javed, Indian ambassador, while speaking on the occasion of independence day.
The visit, which saw signing of several agreements, added new dimension to the ties.
This is in addition to several high-profile exchange of visits between the two countries in the past.
In fact, continuous political interaction has nurtured and shaped ties between the Kingdom and India in recent decades.
The visit of late King Abdullah to India in January 2006 was indeed another historic landmark in the political and economic relations between the two countries.
India as a nation and Indian people, especially those living in the Kingdom, were honored to hear from King Abdullah that he regarded India as his “second home”.
But, the visit of Prime Minister Modi to Riyadh undoubtedly opened a new chapter in bilateral cooperation in diverse fields and has contributed to a qualitative upgradation of the already strong bilateral relationship.
But, there is enormous potential in relations with Saudi Arabia; and New Delhi is determined to enhance the areas of interaction.
The past few months has witnessed positive developments that has brought India-Saudi relations to the threshold of a new phase in bilateral relations.
The two countries are in the midst of a serious, constructive and purposeful interaction process. Although trade and people to people ties are ancient and historic, yet government diplomatic efforts between the two countries have helped to make these relations stronger, more vibrant, contemporary and mutually beneficial.

No doubt, Saudi-Indian relations are forging ahead on the parallel bar of trade and investment between the two countries, whose bilateral trade surged from $2.63 billion in 2005 to over $26.7 billion last year. Bilateral investment was also on the upswing.
Saudi Arabian General Investment Authority (SAGIA) has issued 426 licenses to Indian companies for joint ventures, which will bring more than $1.6 billion investment to the Kingdom.
In fact, Saudi investment in India also gained momentum on the strength of business opportunities emerging in its vibrant economy.
Saudi Arabia, as the 48th biggest investor in India, had investments worth $65 million up to March this year.
Apart from this, Saudi petrochemical giant SABIC had set up its R & D center in Bangalore with an investment of $100 million.
These Saudi-India joint ventures or Saudi-owned companies in India cover a broad spectrum of industry such as paper manufacture, chemicals, computer software, granite processing, industrial products and machinery, cement, metallurgical industries, etc.
In terms of bilateral trade, India ranked as the fourth largest trading partner of Saudi Arabia.
“The Kingdom, in fact, is the eighth largest market in the world for Indian exports and is the destination to more than 2.44 percent of India’s global exports,” said a report published on the website of Indian embassy.
For Saudi Arabia, India is the fifth largest market for its exports, accounting for 8.87 percent of its global exports.
The principal Indian exports to Saudi Arabia have been basmati/non-basmati rice, tea, manmade yarn, fabrics, made-ups, cotton yarn, primary and semi-finished iron and steel, chemicals, plastic and linoleum products, machinery and instruments
India’s major imports from the Kingdom comprise petroleum and petrochemical products. Saudi Arabia is also the largest supplier of crude oil to India accounting for a quarter of India’s crude exports.
In terms of human resources development, Indian manpower has made a significant contribution to the Saudi economy, which absorbed about three million Indian workers, of whom over 80 percent are in the blue-collar category.
Exchange of visits between the business communities on both sides also helped to maintain the forward thrust of bilateral relations. Indian business delegations’ visits to the Kingdom and those of Saudis to India during last decade helped in identifying new areas of cooperation between the two countries leading to technology transfer and job opportunities for the nationals of both countries.
No doubt, the centuries old two-way trade was mutually beneficial for the people of India and Arabian Peninsula, enhancing their knowledge and understanding, besides fulfilling their day-to-day requirements.
On the other hand, the Indian government has always been supporting the endeavors undertaken by the leadership of Saudi Arabia to improve the Haj management, which has made the pilgrimage for the Muslims from across the world a safe and comfortable experience.
The leadership of the two countries has displayed a strong commitment to further the historical bonds of friendship.
The visit of late King Saud bin Abdulaziz to India in 1955 marked the beginning of high-level bilateral engagement, which was followed a year later by the visit of the then Indian Prime Minister, Jawaharlal Nehru, to the Kingdom. Later, Crown Prince Faisal bin Abdulaziz visited India in 1959 and the then Indian Prime Minister, Indira Gandhi, visited the Kingdom in 1982.
The visit of then Indian Prime Minister Manmohan Singh to Saudi Arabia in 2010 and the signing of the ‘Riyadh Declaration’ during the visit gave a further boost to the momentum of bilateral relations. It elevated the engagement between the two countries to the level of strategic partnership and articulated their commitment to promote bilateral ties in political, economic, security, defense and cultural areas.
Based on the framework provided by the Delhi Declaration and Riyadh Declaration, bilateral relations between the two countries have been strengthened with increase in ministerial visits and stronger economic ties based on substantial trade relations and investments.
The tone set by the landmark visits opened new vistas in bilateral cooperation.
Moreover, the two countries have a shared vision for global peace and development.
India supports the Kingdom’s efforts in combating global terrorism and both the countries strive to join efforts to put an end to the scourge of extremism and violence, which constitute threat to all nations. Custodian of Two Holy Mosques King Abdullah’s initiative to promote interfaith dialogue is well received and appreciated by the Indian leadership.
The role played by about three million Indian expatriates in the growth and development of the Kingdom is well appreciated by the Saudi leadership and has played an important role in bringing the two countries closer.
They have been participating in all the major developmental projects in the Kingdom.
On the cultural front, a 45-member Saudi youth delegation visited India on a 10-day tour recently, to promote understanding and friendship among the youth of the two countries.
The Saudi Youth delegation visited premier institutes such as Indian School of Business, Infosys, Narayan Hrudayalaya, Institute of Electrical & Electronic Engineering and many other institutions, and also interacted with Indian business leaders at an event organized by the Confederation of Indian Industry (CII).
The delegation also met Indian political leaders and other senior officials of the ministry of external affairs in New Delhi.
Referring to the progressively growing relations between the Kingdom and India, an Indian embassy report said that “two countries share a historical relationship spanning several millennia, which is characterized by strong civilizational, cultural and socio-economic ties.”
The historic visit of the Custodian of the Two Holy Mosques King Abdullah to India in January 2006 marked the beginning of a new phase in bilateral relations.
The warm reception accorded to the then Indian Prime Minister, Manmohan Singh, during his official visit to the Kingdom in February-March 2010 reflected the importance attached to the bilateral ties by the leaderships of both countries.
Singh was awarded the King Abdul Aziz Sash of first class by King Abdullah, and was given the privilege of addressing the members of Majlis Al-Shoura.
No doubt, the Indo-Saudi ties are flourishing.
The achievements are there for all to see. India and Saudi Arabia today stand tall in the comity of nations, and are justly praised for their enduring commitment to liberty and human rights in the most difficult of circumstances.
In the economic field, too, India and Saudi Arabia are acknowledged giants, major role-player in industry, agriculture and services, and are striding confidently forward in the vanguard of modern technology.
The values of secularism, moderation, tolerance and cross-cultural interaction, which have been India’s core national values for centuries, have assumed a new meaning and urgency in contemporary times.
Hence, It is not surprising that the Indian model is seen as worthy of emulation by other societies and other societies and nations.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 19 June 2019
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Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.