NEW DELHI, 11 April 2005 — India is keen to increase economic cooperation with Saudi Arabia in a number of key areas, Finance Minister P. Chidambaram said. “One is the energy sector. We are also keen to expand exports of pharmaceutical, marine and agricultural products,” he told Arab News prior to leaving for Saudi Arabia on a two-day visit from tomorrow.
There are prospects of Indian banking sector gaining a foothold in Saudi Arabia. Chidambaram said: “State Bank of India wishes to open a branch in Jeddah.”
“We are keen to increase cooperation in the field of education and culture also,” he added.
Highlighting the economic significance of Indo-Saudi ties, Chidambaram said: “We regard Saudi Arabia as an important trading partner.”
Saudi Arabia is the first Arab country being visited by Chidambaram during his present term as finance minister. He will be in Riyadh tomorrow and Wednesday to attend the sixth meeting of the Indo-Saudi Joint Commission.
In an exclusive interview Chidambaram told Arab News: “The last Indo-Saudi Joint Commission meeting was held in New Delhi in 1997 when I was the finance minister. There has been an eight-year gap, which is unfortunate.” With Indo-Saudi ties on the upswing, Chidambaram expressed optimism that the ground lost by the gap would be made up.
During this week’s meeting, wide-ranging talks would be held covering “every aspect of economic cooperation,” Chidambaram said.
Asked if any agreement is likely to be inked during his visit, Chidambaram said that this will depend on whether the talks reach a conclusive stage now or later.
However, informed sources told Arab News that a Bilateral Investment Promotion and Protection Agreement and an accord on avoidance of double taxation would be signed during the visit. Besides, there are prospects of a Saudi-Indian insurance company being set up.
Also on the cards are formation of a joint business council between the Federation of Indian Chambers of Commerce and Industry and the Council of Saudi Chambers of Commerce and Industry, sources said.
“We are keen to sign agreements on air transport between Saudi Arabia and India,” Chidambaram said. “There is considerable scope to work together in the area of agriculture. It is possible that we may cover areas such as animal health, agricultural education, research and water and soil management.”
Specifically referring to the upswing in Indo-Saudi ties, Chidambaram said: “Economic cooperation is a core part of our foreign policy. We regard Saudi Arabia as an important trading partner, an important source of oil and an important destination of our exports.”
India is the fourth largest market for Saudi exports and the ninth major destination for the Kingdom’s imports.
The Indo-Saudi talks are also expected to cover potential areas of cooperation such as the hydrocarbon sector, tourism, tourism-infrastructure, biotechnology and higher education, informed sources said. Certain areas affecting Non Resident Indians would also be included, sources said.
Asked about his vision of India as an economic superpower in around 15 years’ time, Chidambaram replied: “We don’t talk in such terms. We regard India as a growing economy, a big economy that is in terms of size. In our economic pursuit, we shall remain engaged with all nations, big and small.”
With totality of Indo-Saudi relations adding up to more than $8 billion annually, informed sources have painted this as “one of the most significant economic relations in the world.” They have arrived at this figure by adding the value of Indo-Saudi trade, that of Indians performing Haj and Umrah and the money remitted by Indians working in the Kingdom.
Reflecting on the new momentum in Indo-Saudi ties, Chidambaram noted: “Petroleum Minister Mani Shankar Aiyar visited Saudi Arabia last month. External Affairs Minister Natwar Singh will be going there next month.”