The 75th anniversary of the establishment of bilateral relations between India and Saudi Arabia has seen commercial ties between the two strategic partners rise to new heights. According to the General Authority of Statistics, for the first three quarters of 2021, India was Saudi Arabia’s second-largest trading partner.
India’s Department of Commerce found that for the current financial year (April-November), trade between the two countries was $24.9 billion, an increase of 94 percent over the same period last year. It is especially heartening to note that current trends suggest that bilateral trade will surpass pre-pandemic levels. Another achievement worth mentioning is that India is well on its way to achieving its global export target of $400 billion set by Prime Minister Narendra Modi. Specifically, Indian exports to Saudi Arabia will comfortably exceed the set target.
Despite the pandemic's causing a halt in the physical movement of high-level business and trade delegations between the two countries which was expected after the establishment of the Strategic Partnership Council during Modi’s visit to Saudi Arabia in October 2019, the momentum of engagement has been sustained via virtual platforms.
The Economic and Investment Pillar of the Council, co-chaired by the Saudi Energy Minister Prince Abdulaziz bin Salman and the Indian Commerce and Industry Minister Piyush Goyal, has already seen meetings at the senior official level and also under each of the four Joint Working Groups: Industry and Infrastructure; Agriculture and Food Security; IT and Technology; and Energy.
There have also been several positive developments on the investment side. Some 745 Indian companies are registered as joint ventures or 100 percent owned entities in the Kingdom as of October 2021. These figures stretch across sectors and amount to cumulative invested capital of around $2 billion. Saudi investments in India have seen a big jump over the last two years, especially after the visit of Crown Prince Mohammed bin Salman to India in February 2019 which raised Saudi investments in India to $100 billion. Significant investments include the investments of the Public Investment Fund into Reliance Retail Ventures and Reliance Jio.
India remains a top-tier investment destination, and is on its way to becoming a top-three global economy with a nominal GDP of $8-9 trillion by 2030.
To further promote foreign investments in India, various programs, such as Production Linked Incentive Schemes and the National Single Window System have been launched. The 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 have continued to organize several B2B events through a virtual format which bolsters trade and investment in various sectors. Events so far have included cooperation in IT, pharmaceuticals, fruits and vegetables, spices, gems and jewelry, home decor and handicrafts; all have attracted a positive response from the Saudi business community.
A delegation from Saudi Arabia also visited the Indusfood Exhibition organized by the Trade Promotion Council of India in the National Capital Region earlier this month. The delegation explored opportunities in the food sector, which is a priority sector 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 engaging in various initiatives under the aegis of the Embassy. We appreciate the support extended by the Saudi Authorities and Chambers of Commerce towards making these initiatives successful.
As we mark the 73rd Republic Day of India on Jan. 26 this year, there is little doubt that socio-economic partnership between our two countries will continue to strengthen, contributing significantly to the two nations' economic progress.
- Asim Anwar is Second Secretary (Economic and Commercial) at the Embassy of India in Riyadh.