NEW DELHI, 11 January 2004 — Saudi Arabia and India are heading for an “increase” in economic cooperation. A week-long meeting, beginning Jan. 5, held between a high-ranking Saudi delegation and their Indian counterparts concluded yesterday on a “positive and successful” note, sources said.
Headed by Fahd ibn Abdul Rahman Al-Rajeh, director general of International Economic Relations, officials from the Saudi Ministry of Finance held talks with Indian officials from the ministries of external affairs and finance.
Talks were held for the first time on avoiding double taxation. Saudi Arabia would be the fourth Gulf nation with which India has a double taxation agreement. The next round of negotiations will take place in Riyadh.
Promotion and protection of investments between Saudi Arabia and India was the other issue focused upon during the talks.
“India has good relations with the Gulf, which we treat as a part of our neighborhood,” an Indian source told Arab News. “There are 3.5 million Indians in the Gulf, who contribute a substantial amount to our foreign exchange,” he said. Where Saudi Arabia is concerned, he said the ties were heading for a “major boost.”
In Saudi Arabia, 1.4 million Indians constitute the largest expatriate community.
At present, Saudi Arabia is India’s 14th largest market and India is the Kingdom’s fifth largest. Saudi Arabia is the largest source of crude oil to India, supplying 20 percent of the total crude requirements. Total Saudi-India bilateral trade is about $4.04 billion, of which Indian exports account for $808.7 million and imports $3223.4 million. While Indian companies have established 58 joint ventures in Saudi Arabia, there are more than 47 joint ventures in India.