India and Saudi Arabia signal agreements on vitality transition, trade of experience

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India, the world’s third largest crude oil importer, and oil-rich Saudi Arabia resolved to cooperate in vitality transition throughout Union commerce minister Piyush Goyal’s latest Riyadh go to, and the 2 companions have determined to additionally trade their experience in accelerating financial development.

Union commerce minister Piyush Goyal with Saudi Arabia’s minister of vitality Prince Abdulaziz bin Salman Al Saud earlier this week. (PTI Photograph)

Goyal held “fruitful” ministerial engagements in Riyadh with ministers of vitality, business and mineral assets, and funding, specializing in “collaborative initiatives” in commerce, vitality, and know-how, the commerce ministry stated on Friday after the conclusion of the Saudi Arabia go to.

“These discussions culminated in a series of actionable agreements, aimed at enhancing trade volumes and facilitating a smooth flow of investments between the two countries. The agreements emphasise cooperation in energy transition, digital transformation, and the exchange of expertise to accelerate economic growth,” the ministry stated.

Goyal additionally co-chaired the 2nd Ministerial Assembly of the Economic system and Funding Committee beneath the India-Saudi Strategic Partnership Council (SPC) together with Saudi Arabia’s vitality minister Abdulaziz bin Salman Al-Saud on October 30 in Riyadh. The Committee reviewed the progress achieved by the 4 joint working teams (JWGs) — agriculture and meals safety; vitality; know-how and data know-how; and business and infrastructure.

“They noted the deepening of bilateral economic partnership between India and Saudi Arabia and deliberated on ways to enhance trade and investment,” it stated. The committee famous the deepening of bilateral financial partnership between India and Saudi Arabia and deliberated on methods to boost commerce and funding, it added.

The SPC was established in 2019 following the go to of Prime Minister Narendra Modi to Saudi Arabia in October that yr. Through the go to of Crown Prince Mohammad bin Salman to India in February 2019, the Kingdom introduced to take a position about $100 billion in India in numerous fields together with tourism, housing, and trade of audio-visual programmes.

Through the Saudi Arabia go to, Goyal participated within the plenary session of the eighth version of Future Funding Initiative (FII), the place he urged world traders to grab rising alternatives in India, significantly in high-growth sectors reminiscent of synthetic intelligence, renewable vitality, digital infrastructure, and superior manufacturing.

India is the second largest commerce companion of Saudi Arabia whereas Saudi Arabia is the fifth largest buying and selling companion of India, in response to authorities knowledge. The bilateral commerce between the companions stood at $43.3 billion in 2023-24. India exported merchandise price $11.56 billion in the course of the interval and Saudi exports in the identical interval was $31.8 billion.

There have been round 2,783 Indian corporations, together with company teams reminiscent of L&T, TATA, Wipro, TCS, and Shapoorji & Pallonji current within the Kingdom with roughly $2 billion investments as of January 2022. Saudi Arabia’s direct investments in India quantity to $3.15 billion in March 2022. Main Saudi funding teams in India embrace ARAMCO, SABIC, ZAMIL, E-holidays, and Al Batterjee Group. The sovereign wealth fund of Saudi Arabia, the Public Funding Fund (PIF), additionally invested roughly $4.6 billion in lots of Indian start-ups via the Mushy Financial institution’s Imaginative and prescient Fund.

Throughout his Riyadh go to, Goyal additionally met with Schneider Electrical CEO Peter Herweck and, Common Atlantic CEO and chairman William E Ford to debate India’s financial panorama and funding alternatives throughout sectors, the ministry stated in an announcement. In recent times, many bilateral agreements have been formalised between India and Saudi Arabia, overlaying sectors reminiscent of meals exports, prescription drugs, electrical interconnectivity, vitality, small and medium enterprises, digitization and digital manufacturing. Each nations are additionally exploring collaboration in rising fields like fintech, new applied sciences, vitality effectivity, clear hydrogen, textiles and mining, it stated.

The minister launched the Lulu Wali Diwali Pageant on the Lulu Hypermarket by lighting a Huge Diya made with LED, furthering India-Saudi cultural and financial ties. The Diwali Utsav, organised in partnership with Lulu Hypermarket, is showcasing an array of Indian merchandise, from festive decor and conventional meals to handicrafts. The launch was adopted by unveiling of a large product wall comprising 10,000+ Indian merchandise together with Ghee from Uttarakhand, Ladakh Apple, Indian Cavendish banana, Dragon Fruit from Maharashtra, new vary of Millets primarily based breakfast cereals, and Qaadu Natural magnificence merchandise, the assertion stated.

On the Indian Embassy in Riyadh, Goyal unveiled the One District, One Product (ODOP) Wall, that includes distinctive merchandise from numerous districts throughout India. The ODOP initiative, a part of the Authorities of India’s “Vocal for Local” marketing campaign, goals to advertise regional craftsmanship by showcasing the wealthy cultural heritage of India via distinctive, high-quality merchandise, it stated.