On the occasion of the 59th anniversary of India’s Independence, it gives me great pleasure to extend my warm greetings and best wishes to all Indians in the Kingdom of Saudi Arabia.
The people and the government of India attach the greatest importance and priority to the bonds of friendship between India and Saudi Arabia. India and the Kingdom of Saudi Arabia are bound together by a multifaceted relationship that is both historical and warm.
Our relationship draws sustenance from the common ties of our shared history and heritage, as well as the mutual commitments and feelings of respect and affection between our peoples. We have been steadily developing, deepening and diversifying our relations, which are extremely strong today. Accordingly, we have developed a wide canvas of mutually beneficial cooperation.
India shares with the Kingdom similarity of views on several political issues. We face common challenges and share a common resolve to meet those challenges. We see the Kingdom of Saudi Arabia as an important partner in combating global terrorism and would like to commend the efforts of Custodian of the Two Holy Mosques King Abdullah for successfully combating the threat of terrorism in the Kingdom.
The recently concluded visit of King Abdullah to India in January 2006 is, indeed, a historic landmark and an important milestone in the political and economic relations between the two countries. The king’s visit has undoubtedly, opened a new chapter in bilateral cooperation in diverse fields and has contributed to a qualitative upgradation of the already strong bilateral relationship.
Breaking all protocols India’s Prime Minister Manmohan Singh received King Abdullah and his accompanying delegation on arrival in New Delhi and also went to see them off at the airport. Inviting King Abdullah to be the chief guest on our Republic Day reflected the importance we attached to the royal visit. We were delighted to hear from King Abdullah that he regarded India as his “second home”.
As a measure to expand and diversify mutual trade and promote investment opportunities in all sectors, India and Saudi Arabia signed a Double Taxation Avoidance Agreement (DTAA) and a Bilateral Investment Promotion and Protection Agreement (BIPPA) during the visit. A Memorandum of Understanding (MoU) on Combating Crime was also signed. A cooperation agreement in the field of youth and sports was also concluded. A total of 10 commercial MoUs/Agreements were signed during the special session of the India-Saudi Arabia Joint Business Council held during the visit.
At the conclusion of the visit Prime Minister Manmohan Singh and King Abdullah signed the historic ‘Delhi Declaration’. It was the first Declaration to be signed by a Saudi king -- a tribute to the mutual friendship between our two countries. The “Delhi Declaration” affirmed the need of close cooperation and concerted efforts of both countries in the fight against terrorism and calls for a wide-ranging strategic partnership in the critical energy sector. The Declaration affirms that India and Kingdom of Saudi Arabia shall work for closer cooperation in the field of technology, health sector, education, tourism, youth affairs and sports
As a measure of follow-up to the king’s visit Saudi Foreign Minister Prince Saud Al-Faisal visited India in February 2006. He held talks with the prime minister and petroleum minister. To enhance cooperation in the field of education, as intended in the ‘Delhi Declaration’, an Indian delegation led by Arjun Singh, human resource development minister, visited the Kingdom in May 2006. Arjun Singh met the king and delivered a letter from Indian prime minister. He also met the minister of higher education, minister of education, rectors of King Saud University and Imam Muhammad ibn Saud University and King Abdul Aziz University.
To further improve bilateral relations and for first hand understanding of the conditions of Indian community resident in the Kingdom Vayalar Ravi, minister of overseas Indian affairs visited the Kingdom on a two-day trip in May 2006.
I am pleased to note that the bilateral economic relations are strong and further growing steadily. India is fourth largest trading partner for Saudi Arabia. Saudi Arabia is the 15th largest market for India and India is the fifth largest market for Saudi Arabia. Saudi Arabia is the largest source of crude oil to India, supplying 26 percent of India’s total crude requirements. Total Indo-Saudi bilateral trade during FY 2004-05 is around $8.76 billion (including import of oil for $6.13 billion). Indian companies have established 108 fully Indian owned entities or joint ventures in KSA. There are around 49 Indo-Saudi joint ventures in India.
With the successful visit of King Abdullah to India, both countries need to sustain the momentum generated by the high-level visit and to build upon it in a mutually beneficial manner. India has a huge and growing market with a large middle class, abundant raw materials and highly trained and skilled manpower.
We invite the business community of the Kingdom to take advantage of these opportunities. The economies of both India and Saudi Arabia are undergoing a process of rapid economic liberalization and, in this era of globalization, we need to encourage both our private sectors to establish closer linkages through concerted and sustained interaction on a long-term basis.
Jai Hind
M.O.H. Farook
Ambassador
