The leaders of the two countries — Commerce and Industry
Minister Anand Sharma and Saudi Arabian Minister of Commerce and Industry
Abdullah Zainal Alireza — also vowed in New Delhi to exchange business
delegations regularly to explore new trade and investment opportunities.
"Economic ties would constitute a very solid foundation
for the development of Indo-Saudi strategic partnership," said Sharma.
"While the trade ties at present are already quite substantial, there is
immense potential for taking the bilateral trade relations to the higher
level."
On his part, Alireza described Saudi-Indian partnership as
"strategic" and "solid" and called for collaboration with
the world's third-largest economy for building a knowledge-based economy in his
country.
"At this point, a great opportunity exists to further
institutionalize our collaborative efforts so that both countries continue to
mutually benefit," said Alireza, who was on a three-day visit to India.
Supporting an open economic policy, Alireza said many
countries in the world have succumbed to domestic pressures and resorted to
protective trade measures.
"These have been fundamentally inhibiting to free trade
and we should not allow the decline of international trade to propel us toward
protectionism. Any precipitous short-term actions will have long-term
consequences," said Alireza on the sidelines of an event organized by the
Federation of Indian Chambers of Commerce and Industry.
Both countries showed interest to set up joint ventures in
both countries. "India was keen to set up joint ventures for gas-based
fertilizer plant in Saudi Arabia. Indian companies have evinced keen interest
in setting up of such projects," Sharma said.
Both leaders also reviewed strategies to increase the trade
volume in traditional items and diversify the trade basket.
While India's exports to Saudi Arabia increased to $3.91
billion in 2009-2010 from $1.81 billion in 2005-2006, its imports from Saudi
Arabia increased substantially to $17.1 billion in 2009-10 from $1.63 billion
in 2005-06, Sharma said.
The increase in India's trade deficit with the Kingdom has
been mainly due to an increase in the prices of crude oil and petroleum
products.
While India imports mainly petroleum products, organic
chemicals, artificial resins and plastic material from Saudi Arabia, its
exports to the Kingdom include petroleum products, basmati rice, non-ferrous
metals, machinery and instruments, dyes, coal tar and chemicals.
India's imports from Saudi Arabia surged to $17.09 billion
in 2009-2010 from $1.63 billion in 2005-2006 on the back of an increased demand
and prices of petroleum products.
Alireza also met Indian Prime Minister Manmohan Singh during
his visit to India.
Referring to the "landmark" visit of Custodian of
the Two Holy Mosques King Abdullah to India in 2006 and a return visit of the
Indian prime minister to the Kingdom recently, he said that the Saudi-India
strategic partnership "will overcome any challenge."
