In a bid to enhance economic ties, Commerce and Industry Minister Piyush Goyal has expressed the potential for India and Saudi Arabia to double their current bilateral trade volume, aiming for an impressive $100 billion. Goyal’s statement came during the visit of Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud to India, following the conclusion of the G20 Summit.
Goyal emphasized the importance of achieving a more balanced trade relationship between the two nations. He proposed that Saudi Arabia establish an office for its sovereign wealth fund in India’s GIFT city, Gujarat, and suggested that Ficci (Federation of Indian Chambers of Commerce and Industry) collaborate with Invest India and the Commerce Ministry to set up an office in Riyadh, facilitating investment opportunities.
Goyal articulated his vision, saying, “Can we be more ambitious and take it to $100 billion, can we look at a more balanced trade, can we look at India becoming the provider of food security to Saudi Arabia, while Saudi Arabia helps us provide more energy security like oil and fertilizer. So, it will really be a win-win and complimentary relation.”
India’s exports to Saudi Arabia have seen an increase, rising to $10.72 billion in 2022-23 from $8.8 billion in the previous fiscal year. Imports, primarily driven by oil shipments, have also surged, reaching $42 billion in 2022-23 from $34.1 billion in 2021-22.
The Saudi Crown Prince’s visit has resulted in the signing of approximately 50 Memoranda of Understanding (MoUs) valued at $3.5 billion between India and Saudi Arabia.
Goyal further extended an invitation for investments from Saudi companies, highlighting India’s demographic potential and its population of over a billion aspirational consumers.
Regarding the proposed free trade agreement with the Gulf Cooperation Council (GCC), Goyal mentioned that discussions are underway to foster greater engagement, possibly through a free trade agreement in the future. Notably, chief negotiators from both sides convened on August 29 to explore ways to formalize enhanced trade relations.
Goyal also delved into the potential for Indian firms to contribute to Saudi Arabia’s NEOM project, a massive engineering endeavor. He underscored India’s capabilities in areas such as design, construction, manpower, and business development, which align with the objectives of the NEOM project.
Khalid A Al Falih, the Investment Minister of Saudi Arabia, affirmed the ongoing collaboration in this regard, highlighting Indian companies’ active involvement in infrastructure development, with notable mentions of L&T.
Furthermore, Goyal emphasized the substantial potential in the pharmaceutical sector and suggested that greater alignment between the regulatory authorities of Saudi Arabia and India could prove beneficial for pharmaceutical companies.
This exchange of ideas and proposals during the visit signifies both nations’ commitment to strengthening economic cooperation and fostering mutually beneficial ties.
