Post-G20, India and Saudi Arabia build on corridor, strategic ties

“We are adding a new and modern dimension to our relations, in sync with the changing needs of the time… For India, Saudi Arabia is among the most important strategic partners… as the world’s two large and fast growing economies, our cooperation is important for the peace and stability of the entire region,” Modi said.

President Droupadi Murmu, PM Narendra Modi and Saudi Arabia’s Crown Prince and PM Mohammed bin Salman at the Rashtrapati Bhavan on Monday. (Express photo by Anil Sharma)

“I am very glad to be here in India. I want to congratulate India for the G20 Summit…a lot of announcements were made that will benefit both our countries, the G20 countries and the whole world. So I want to say to India, well done, and we will work to create a future for both countries,” MBS said.

At a media briefing later, Secretary in the Ministry of External Affairs (MEA), Ausaf Sayeed, said the two sides signed eight agreements, including on upgrading their hydrocarbon energy partnership to a comprehensive energy partnership for renewable, petroleum and strategic reserves.

The two sides also agreed to create a joint task force for US$ 100 billion in Saudi investment, half of which is earmarked for a delayed refinery project along India’s western coast, Sayeed said.

Talking about interconnectivity between India and the Gulf countries, Sayeed said it would include ports, railways and better roads, as well as power, gas grids and optical fibre network.

Officials said India will be connected by railroad under the multinational IMEC that was announced on the sidelines of the G20 Summit. The proposed rail and ports plan, with the US, Saudi Arabia, India, European Union, United Arab Emirates as members, is being perceived as a counter to China’s Belt-and-Road Initiative.

The agreements include cooperation between India’s Central Vigilance Commission and Saudi’s anti-corruption unit, between investment entities, small and medium enterprises banks, between the National Archives of the two countries, and on desalination and renewable energy.

The two sides also discussed the possibility of trading in local currencies and expediting the negotiations for a free trade agreement between India and the Gulf Cooperation Council of which Saudi Arabia is a member.

Over two dozen Memoranda of Understanding (MoUs) were signed between Indian and Saudi Arabian companies as well, ranging from information technology, agriculture, pharmaceuticals, petrochemicals and human resources, among other sectors.

“The Crown Prince congratulated India for a very successful G20 meeting with a lot of major outcomes in the meeting… The two sides expressed their happiness at the launching of the India-Middle East-Europe Corridor… The PM also congratulated the Kingdom on becoming a full member of the BRICS,” said Sayeed.

“Both sides welcomed the key initiatives taken by both governments to improve business climate, simplify and rationalise rules for relaxing foreign direct investment norms, the ease of doing business and reforms undertaken by India. Both sides discussed further facilitation of investments from Saudi Arabia’s sovereign wealth fund and its portfolio companies,” said a joint statement.

Both sides also noted the ongoing discussions on Bilateral Investment Treaty, Double Taxation Avoidance Agreement and Mutual Legal Assistance in Custom matters, it said.

In light of the economic transformation that both countries are witnessing through Saudi Arabia’s Vision 2030 and India’s flagship initiatives such as Make in India, Start-up India and Digital India, both sides expressed their interest in strengthening economic ties and exploring different investment opportunities in various strategic sectors, it said.

Both sides agreed to explore opportunities for cooperation in payment systems, including the acceptance of RuPAY cards in Saudi Arabia for the benefit of the Indian community in general and more particularly the Haj/ Umrah pilgrims, the statement said.

“The importance of trade in the bilateral relationship was recognised. Both sides praised the burgeoning trade ties and noted that bilateral trade has increased to more than US$ 52 billion in 2022-23, marking a growth of more than 23%. Both sides also noted that India is the second largest trade partner of Saudi Arabia, while Saudi Arabia is the fourth largest trade partner of India,” it said.

The statement said the two sides commended the deepening cooperation in the defence sector and agreed to continue to “consider possibilities of joint development and production of defence equipment”.

“Both sides emphasised that terrorism, in all its forms, remains one of the gravest threats to humanity. They agreed that there cannot be any justification for any act of terror for any reason whatsoever. They rejected any attempt to link terrorism to any particular race, religion or culture. Both sides called on all states to reject the use of terrorism against other countries, dismantle terrorism infrastructure where it exists and bring perpetrators of terrorism to justice swiftly. Both sides stressed the need to prevent access to weapons including missiles and drones to commit terrorist acts against other countries,” it said.

And, on Afghanistan, it said: “The two sides stressed the importance of achieving security and stability in Afghanistan and forming an inclusive government that represents all spectrums of the Afghan people, and not allowing Afghanistan to be used as a platform or safe haven for terrorist and extremist groups.”

The statement said India also thanked Saudi Arabia for taking excellent care of over 2.4 million Indians residing there, extending support for evacuating Indian nationals stranded in Sudan through Jeddah under Operation Kaveri, and for facilitating Indian Haj and Umrah pilgrims.

Later in the evening, President Droupadi Murmu hosted a banquet for the Saudi Crown Prince, where she said that Saudi Arabia has embraced a large number of Indian expatriates, and given them space to flourish and grow.