G20: India vows full support to Saudi Arabia

Riyadh will host the G20 this year. (AN photo by Ziyad Alarfaj)
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Updated 26 January 2020

G20: India vows full support to Saudi Arabia

On the joyous occasion of the 71st Republic Day of India, I would like to extend my warm greetings and felicitations to all Indian citizens and Persons of Indian Origin in the Kingdom of Saudi Arabia.

Republic Day is of very special significance to every Indian, wherever in the world they live. On Jan. 26, 1950, the Constitution of India came into effect, which declared India a sovereign, socialist, secular and democratic republic.

The Constitution of India provides basic fundamental rights to Indian citizens and assures them of justice, equality and liberty, and endeavors to promote fraternity among them. The Constitution does not discriminate against anyone based on religion, caste, creed, gender or any other grounds.

Republic Day is also the day on which India’s first president, Dr. Rajendra Prasad, was sworn in as the constitutional head of the country, replacing the governor general appointed by the British monarchy. Two-and-a-half years after India gained its Independence on Aug. 15, 1947, it transitioned into one of the biggest democracies in the world, fulfilling the dreams of Mahatma Gandhi and thousands of freedom fighters who had shed their sweat and blood to secure freedom for our country.

Thus, the idea of India as an open, pluralistic democracy that supports a multireligious, multicultural, multi-ethnic, multilingual and secular society emerged. Underneath this diversity lies the continuity of Indian civilization and social structure, from the earliest times until the present.

The idea of India as an “epitome of the world” has been fascinating people since ancient times. Numerous inspiring accounts of visiting India were given by world travelers such as Fahien, Hiuen Tsang, Ibn Batuta, Alberuni, Ferishta, Vasco da Gama, Marco Polo and several others.

Renowned American philosopher Will Durant described India as “the motherland of our race, and Sanskrit the mother of Europe’s languages.” German Indologist Max Muller called India “the country most richly endowed with all the wealth, power and beauty that nature can bestow.”

In a modern context, India advocates a democratic and rules-based international order that emphasizes the equality of all nations, irrespective of size, population and military might. India adopts a consultative and law-abiding approach as its geopolitical role in the regional and global arena is increasingly recognized.

India’s commitment to transparency and market principles in its economic decisions, and its steadfast will to ensure that its economy is open and shares its resources and markets with its global partners, including the Gulf nations, makes it a favored economic partner for countries around the globe.

The numerous measures undertaken by the government to improve the ease of doing business — including the slashing of corporate tax rates, increasing foreign direct-investment limits in a range of sectors, and cutting red tape in decision-making — have, among other things, helped India climb to the 63rd spot in the World Bank’s rankings based on ease of doing business during 2020. 

In addition, India has made significant progress to achieve 52nd rank in WIPO’s Global Innovation Index (GII) 2019 and 54th rank in Bloomberg Innovation Index 2020 which implies that the culture of innovation is taking center stage in India. 

India’s foreign exchange reserves rose by $64 billion in 2019 to touch a record $457.5 billion. India is self-sufficient in food grains with an output of nearly 284 metric tons last year. This year we expect to grow more food and take the total output to 291 mt, including 116 metric tons of rice and 100 metric tons of wheat. Despite a slight slump in India’s economy last year, the future looks promising. The IMF has projected that India’s GDP would grow at the rate of 5.8 percent in 2020 and rise to 6.5 percent by 2021, keeping India on course for a $5 trillion economy by 2024-25.

On the foreign policy front, India advocates a democratic and rules-based international order that emphasizes the equality of all nations, irrespective of size, population and military might. India is in favor of comprehensive reforms of the UN Security Council and its expansion to make it more representative, effective and responsive to the geopolitical realities of the 21st century.

India’s deep commitment to the Indo-Pacific region based on our vision of SAGAR — Security and Growth for All in the Region — and its consultative and law-abiding approach on matters of global importance is widely recognized and appreciated. India continues to have comprehensive cooperation with the GCC, IORA, ASEAN and the African countries among others.

India’s bilateral relations with Saudi Arabia in modern times date back to 1947, when diplomatic relations were established between the two countries immediately after India gained independence. The bilateral relationship has evolved progressively into a multifaceted and mutually beneficial strategic partnership.

The signing of an agreement between the two countries, during an official visit by Prime Minister Narendra Modi to the Kingdom in October 2019, to form a Strategic Partnership Council marks a new era in Indo-Saudi relations.

The leadership of both countries is keen to strengthen and expand the gamut of bilateral relations in diverse fields such as trade, investments and economic cooperation, infrastructure, security and defense cooperation, energy security, food security, health care, entertainment, civil aviation, tourism and culture, along with people-to-people engagement.

India has a robust trade and economic relationship with Saudi Arabia, which is India’s fourth-largest trading partner. Bilateral trade is worth $34 billion, which includes a non-oil component of $10 billion. Several prestigious Indian companies operate in the Kingdom and are participating in the development process underway in the country under its Vision 2030 program.

Saudi Arabia plays a significant role in ensuring India’s energy security by meeting its long-term energy requirements, supplying 18 percent of its crude oil and 30 percent of its liquid petroleum gas needs.

The Kingdom’s plans to increase its footprint in India’s downstream sector — including a partnership that proposes to create world’s largest oil refinery, taking equity stakes in existing refineries, and its decision to participate in India’s Strategic Petroleum Reserves — reflect the keen desire of both countries to transform bilateral cooperation in the hydrocarbons sector into a larger strategic partnership based on complementarities and interdependence.

For its part, India is keen to contribute to the food security requirements of the Kingdom. Numerous initiatives are being explored in the fields of agriculture and food technologies. Greater collaboration in the areas of education, knowledge-based Industries, innovative technologies, and capacity building are being explored.

India has promised its full support to help ensure Saudi Arabia’s presidency of the G20 is a great success. Nearly 150 delegations from India, including several Cabinet ministers, are expected to visit the Kingdom this year and engage with their Saudi and other international counterparts on a range of issues, including finance, infrastructure, health care, climate change, energy sustainability and food security.

I would be failing in my duty if I did not acknowledge the enormous contribution made by the Indian professionals and skilled workers to the economic development of the Saudi Arabia, and for promoting greater understanding between the people of the two countries.

I would like to avail of this opportunity to express my deepest gratitude to King Salman and Crown Prince Mohammed bin Salman for their strong support in elevating the bilateral relations between our countries into a strategic partnership, and for ensuring the well-being of the 2.6 million Indian nationals who live in the Kingdom.

Long live the India-Saudi Relationship.

• Dr. Ausaf Sayeed is the Indian ambassador to Saudi Arabia.


G20 ready to limit effects of coronavirus on global economy, Saudi finance minister

Updated 23 February 2020

G20 ready to limit effects of coronavirus on global economy, Saudi finance minister

  • G20 will continue to take joint action to strengthen international co-operation and frameworks
  • Finance ministers agree measures to tackle global problems, coronavirus

RIYADH: The meeting of G20 finance ministers and central bank governors ended in Saudi Arabia with a determination to tackle pressing global concerns such as geopolitical and trade confrontations, as well as the challenge of the coronavirus outbreak.
The official communique — hammered out among the G20 policy-makers gathered in Riyadh over two days of discussions — said that global economic growth was expected to pick up “modestly” this year and next, on signs of improving financial conditions and some signs of easing trade tensions.
“However, global economic growth remains slow, and downside risks to the outlook persist, inching those arising from geopolitical and remaining trade tensions, and policy uncertainty. We will enhance global risk monitoring, including the recent outbreak of COVID-19 (coronavirus). We stand ready to take further action to address those risks,” the communique said.

On so-called “trade wars” between the US and China — which was not represented at the Riyadh meeting because of the outbreak — the communiqué said: “We will continue to take joint action to strengthen international co-operation and frameworks, and also reaffirm our commitments on exchange rates.”
There was general agreement by the ministers on measures on infrastructure investment, technology development, and plans to boost domestic capital markets across the world, especially in emerging and developing countries.
But a note of caution was also sounded in several areas.The G20 finance ministers said that “we are facing a global landscape that is being rapidly transformed by economic, social, environmental, technological and demographic changes.”
Apart from that mention of the environment, there was little attention given to the contentious issue of climate change. Towards the end of the communique, the ministers and governors said: “The financial stability board (of the G20) is examining the financial stability implications of climate change.”
The finance ministers’ gathering is the first formal event in preparation for the summit of world leaders that will take place in Saudi Arabia in November, with the three key aims of empowering people, safeguarding the planet and shaping new frontiers in technology and innovation.
The international taxation system was an area of focus at the finance ministers meeting, with some countries threatening a controversial digital tax. The communique said that “we continue to support tax capacity building in developing countries,” and called on all countries to sign multilateral agreements on tax matters. “We remain committed to the full, timely and consistent implementation of the agreed financial reforms,” it added.
Other big themes of the financial G20 meeting included inclusion of youth and women in the financial process. “We support the emphasis on digital financial inclusion of under-served groups, especially youth, women and small businesses,” the communique said.
There was also strong support for the work of the global Financial Action Task Force in combating money laundering and terrorism finance. “We reiterate our strong commitment to tackle all sources, techniques and channels of these threats,” the G20 ministers said, also backing measures to tackle the financing of nuclear proliferation. “We ask the FATF to remain vigilant with respect to emerging financial technologies that may allow for new methods of illicit financing,” it added.