Modi in Riyadh: India, Saudi vow to boost business relations, diversify non-oil trade

Both leaders also witnessed the signing of the framework agreement between the General Investment Authority in Saudi Arabia and Invest India aimed at facilitating investments by the private sectors in the two countries. The agreement was signed at the Royal palace on Sunday.

Sources told The Indian Express that while both leaders understood the primacy of oil trade, they were keen to diversify to non-oil trade as well. This was evident from the conversation between the PM and the Saudi Aramco chairman and health minister Khalid A Al Falih as well.

[related-post]

As Saudi Arabia expressed its interest in investing in the infrastructure development in India, Prime Minister Narendra Modi “encouraged” Saudi Aramco, SABIC and other Saudi companies to invest in the infrastructure sector in India and to participate in projects creating mega industrial manufacturing corridors, smart cities as well as the Digital India and Start up India programmes.

According to the joint statement issued after the meeting between the PM and the Saudi King, the Saudi side expressed its interest in investing in infrastructure development in India, especially in priority areas such as railways, roads, ports, and shipping.

“The Saudi side welcomed interest of Indian side in investing in the Kingdom, especially taking advantage of the competitive investment opportunities offered by the Saudi economic and Industrial cities,” it said.

Keeping in view the importance of energy security as a key pillar of the strategic partnership, the two leaders expressed satisfaction at their growing bilateral trade in the energy sector, acknowledging Saudi Arabia as the largest supplier of crude oil to India.

“The two leaders agreed to transform the buyer-seller relationship in the energy-sector to one of deeper partnership focusing on investment and joint ventures in petrochemical complexes, and cooperation in joint exploration in India, Saudi Arabia and in third countries. The two sides also agreed to focus on areas of training and human resources development and cooperation in research and development in the energy sector. In this regard, the two leaders expressed the need for regular meetings under the umbrella of India-Saudi Arabia Ministerial Energy Dialogue,” the statement said.

Acknowledging the steady increase in bilateral trade over the last few years, the two leaders also expressed satisfaction at the $39 billion trade in 2014-15. Taking note of the “excellent trade and economic engagement”, with the two countries being among the top trading partners for each other, the two leaders agreed upon the need to further strengthen these ties, particularly through diversifying non-oil trade.