RIYADH: Trade and economic ties between India and Saudi Arabia have taken another step after the launch of the United Nations Investment Forum earlier this week.
The body was established in 2023 when Crown Prince Mohammed bin Salman paid an official visit to the Asian nation – a visit that came four years after he pledged $100 billion in investment in India during a trip there. New Delhi.
The first meeting of the task force was held on July 30, and was co-chaired by Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, and PK Mishra, the principal secretary of Indian Prime Minister Narendra Modi.
During the talks, India invited Saudi Arabia's Public Investment Fund to set up an office in the Asian country, as it seeks funds from the Kingdom.
“We discussed various opportunities for investment between the two countries in various sectors of the public and private sectors, including the refining and petrochemical industries, new energy and renewables, electricity, telecom, innovation, etc,” the Indian Prime Minister's office said in a statement after the Supreme Army meeting.
The announcement also revealed that there will be an authorized delegation led by the Secretary of Petroleum in the country, to visit Saudi Arabia for further discussions on profitable investments in the oil and gas sector.
Both countries also agreed to regular consultations between the technical teams to advance the discussion and reach an agreement on special investments.
India has also invited the Saudi energy minister to visit New Delhi in the next round of the Supreme Army meeting.
India and Saudi Arabia: A long history of relations
Although India and Saudi Arabia have shared strong economic and trade ties since 1947, the relationship between the two sides changed after the signing of the Delhi Declaration in 2006.
This was followed by the Riyadh Declaration in 2010 when the then Indian Prime Minister Manmohan Singh visited Saudi Arabia, elevating the relationship as a strategic partnership between the two countries.
Later, Modi's visit to Saudi Arabia in 2016 captured the spirit of enhanced political, economic, security and defense cooperation between Riyadh and New Delhi.
When the prince visited India in 2023, on the sidelines of the G20 Leaders' Summit and to co-chair the first Leaders' Meeting of the India-Saudi Arabia Strategic Partnership Council, he The two countries signed eight agreements across many sectors, including energy, banking. , and investment, as well as production, archive cooperation, anti-corruption and water purification.
Apart from growing economic and trade ties, India and Saudi Arabia also have strong emotional and cultural ties, making the Kingdom the most sought-after destination for Indian talents and religious tourists.
Data from the Indian embassy in Riyadh revealed that more than 2.65 million Indians live in Saudi Arabia, which acts as a “living bridge between the two countries”.
The ambassador also added that cultural cooperation between India and Saudi Arabia has also expanded in the fields of cinema and entertainment, sporting events like cricket and football and tourism exchange in recent years. the few years.
The latest trade statistics between Saudi Arabia and India
According to data from the Consulate General of India in Jeddah, Saudi Arabia is the fourth largest trading partner of the Asian country, while India is the second largest trading partner of State.
The Consulate General of India also acknowledges that Saudi Arabia is not only a trade partner, but “a key pillar for energy security and an important economic partner for the investment, collaboration and transfer of technology projects.”
Data from the Central Bureau of Statistics reveals that Saudi Arabia's exports to India in 2023 were worth SR113.35 billion ($30.20 billion), while SR43 .57 billion in the Kingdom's imports from Asian countries.
By 2023, Saudi Arabia will be India's third largest oil exporter, accounting for 39.5 million tonnes, accounting for 16.7 percent of the country's oil imports.
Another report released by GASTAT in July noted that Saudi Arabia's exports to India in May were worth SR8.03 billion.
In terms of non-oil exports, the Kingdom exported goods worth SR2.23 billion in May, with chemical and allied products leading the charts with goods worth SR1.27 billion.
Saudi Arabia also exported plastic and rubber products to India worth SR448 million that month, while shipments of base metals were SR347.8 million.
On the import side, goods worth SR3.54 billion from India arrived in Saudi Arabia in May.
Mechanical equipment and electrical equipment were the top items imported from India to the Kingdom in May with a value of SR886.1 million.
In the same month, India exported chemical and allied products worth SR470.4 million, followed by plant products and base metals at SR580.3 million and SR342.2 million.
Progress in the tourism sector
Apart from trade relations, India and Saudi Arabia also have strong ties in the tourism sector.
More than 1.5 million Indian tourists visited the Kingdom in 2023, a 50 percent increase from the previous year, according to the Saudi Tourism Authority.
To increase the number of Indian tourists visiting the State, STA organized networking events in Mumbai, Ahmedabad, Bengaluru, and Delhi and interacted with trade associations in February.
STA, as part of its wider tourism strategy, aims to attract 7.5 million Indian visitors over the next seven years.
Data from the Indian Ministry of External Affairs reveals that more than 170,000 pilgrims in India will perform Hajj in 2024, marking a significant increase from 139,000 and 57,000 in 2023 and 2022.
Air connectivity between Saudi Arabia and India has also increased by 31 percent between 2019 and 2023. Flights now connect 12 major hubs in India with Saudi cities including Riyadh, Jeddah , and Dammam.
Saudi Arabia's growth as a global tourism destination is fueled by the Kingdom's mega-projects such as NEOM, with developments in the surrounding areas of Alula, Diriyah and the Red Sea.
India is also emerging as a favorite destination for tourists from Saudi Arabia.
A report released by travel app Wego in July revealed that Saudi Arabia emerged as the top five source of travelers from the Middle East to India.
The analysis indicated that the routes from Riyadh to New Delhi and Riyadh to Lucknow were the most popular among Middle Eastern travelers during the first half of this year.
“The research suggests a dynamic travel landscape where India remains a key destination for leisure and international travelers, driven by various factors such as -land, business and family relationships,” said Bernard Corraya, CEO of Wego India. office.
