Last month, Indian Foreign Minister Pranab Mukherjee was in the Kingdom on a visit that to most observers seemed to be largely about economic ties. It was certainly that: during the trip it was agreed to set up a Saudi-Indian investment fund; a bilateral investment promotion and protection agreement was ratified after a three-year wait; and in, another boost to bilateral trade, it was announced that Indian businessmen are to be given long-term visas to the Kingdom.
But there was much more to the visit than trade; it was very much about the practicalities of what looks increasingly, if not a special relationship, then a special relationship in the making. Mukherjee alluded to that in a comment he made at the time: Most readers are aware of the growing Indian business relationship with Saudi Arabia. They can see the Tata trucks and cars on the roads, they have almost certainly heard of the presence of Indian IT majors such as Infosys and Wipro in the Kingdom and of the launch of the State Bank of India here — and Indians constitute the largest expatriate community in the country.
That the economic relationship is expanding fast was also demonstrated following Mukherjee’s visit with the arrival of yet another Indian business delegation, this time led by Montek Singh Ahulwalia, deputy chairman of India’s Planning Commission. Significantly, it was not so much focused on Indian investment in Saudi Arabia or what India can sell here as on attracting Saudi investment to India. That is not going to be a problem. Saudi investors are major players in the global market. With the returns in the US and Europe ever less attractive, Asia is increasingly the favored investment spot — and nowhere more so than India. Investments there are safe and the international downturn has left it unaffected. But unlike China with the same pluses, the economy is not controlled by the government and, therefore, not subject to interference. Saudi investment in India is thus assured. Indeed, with European and American investors rushing to grab a slice of the action, why would their Saudi counterparts lag behind?
Mukherjee’s comments about new ties going deeper than trade can be seen with the visit last week of Indian’s vice chief of Army Staff, Lt. Gen. Milan Naidu. Military heads are not tourists; they do not visit other countries for fun. This visit makes clear that links between the Saudi and Indian militaries are also growing. Indeed, the general himself has said as much.
Military ties; expanding business relations; investment; political talks. All hark back to the visit to India in 2006 by Custodian of the Two Holy Mosques King Abdullah. It turned what had till then been a mundane relationship into something far more dynamic, far more involved. We now see the result. India wants investment; it wants security of energy resources and a voice on the world stage that is heard. Saudi Arabia wants to diversify and expand it economic and political relationships. This is a relationship that will go far.
