Riyadh and New Delhi to Promote Roadmap for Economic, Investment Cooperation

19/08/2025 04:05 AST

India and Saudi Arabia are working diligently to establish a joint roadmap for fostering a dynamic partnership aiming at enhancing economic, investment, and trade cooperation between the two countries.

Ambassador of India to the Kingdom of Saudi Arabia, Dr. Suhel Ajaz Khan, said in an interview with Asharq Al Awsat on Monday that Saudi Arabia is one of India's most trusted and valued strategic partners. He said the ties between the two countries are "rooted in a rich tapestry of civilizational, cultural, and commercial connections that date back centuries.

"In recent years, the relationship has grown exponentially, evolving into a robust Strategic Partnership that spans key sectors - politics, defense, security, trade, investment, energy, technology, health, education, and culture".

He pointed to the "landmark State Visit of the Honorable Prime Minister to the Kingdom in April 2025 was a true reflection of this deepening bond. The Prime Minister of India and His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia had highly productive engagements in Jeddah, resulting in key outcomes - including the agreement on establishment of two India-Saudi joint venture refineries in India, and MoUs in Health, Postal cooperation, Space cooperation and Sports (anti-doping)".

"The second leaders meeting of the India-Saudi Arabia Strategic Partnership Council (SPC) was also co-chaired by the two leaders during this visit. The Council reviewed the work of the various committees, subcommittees and working groups under the SPC, which encompass political, defense, security, trade, investment, energy, technology, agriculture, culture and people-to-people ties. The discussions were followed by signing of the minutes by the two leaders. To reflect the deepening of the strategic partnership over the past few years the Council decided to create two new ministerial committees under the SPC; one on Defense Cooperation and another on Tourism and Cultural Cooperation".

The Ambassador went on to say that "India and Saudi Arabia are not only consolidating a dynamic partnership but also charting a bold vision for the future. Together, we are poised to play a pivotal role in shaping peace, progress, and prosperity at both regional and global levels".

On the most important areas of economic, investment, and trade cooperation between the two countries, he said: "As the fastest-growing G-20 economies, India and Saudi Arabia are natural economic partners. Our partnership is vital not just for our own prosperity, but also for the resilience and stability of the global economy, particularly at a time of global uncertainty.

"Trade and investment form the economic backbone of our relationship," he stated, "both countries have built strong institutional frameworks including a Ministerial Committee on Trade, Economy, Investment, and Technology, and a High-Level Task Force on Investment co-chaired by HRH the Saudi Energy Minister and India's Principal Secretary to the Prime Minister. Our economic visions - Vision 2030 of Saudi Arabia and India's Viksit Bharat 2047 - complement each other, creating vast synergies for growth".

On the volume of trade exchange and its growth rate, the Indian Ambassador stated: "India-Saudi Arabia trade has witnessed impressive growth in recent years. In FY 2024-25, bilateral trade touched approximately USD 42 billion. India is now Saudi Arabia's second-largest trading partner, while the Kingdom ranks fifth for India.

He went on to say: "Trade has diversified significantly. India exports engineering goods, rice, chemicals, vehicles, textiles, food products, and gems & jewelry to the Kingdom. On the other hand, we import crude oil, LPG, fertilizers, plastics, and chemicals from Saudi Arabia. There is a strong momentum to further expand trade - especially in promising sectors like pharmaceuticals, processed food, advanced manufacturing, gems and jewelry, and high-value engineering goods.

"A prospective Free Trade Agreement between India and the GCC would be a game-changer - unlocking even greater potential for trade and investment".

He noted that "India's private sector has embraced Saudi Arabia as a hub of opportunity. Indian businesses are actively exploring the Saudi market, especially in light of the transformational opportunities offered under Vision 2030. The number of licensed Indian companies in the Kingdom surged from 400 in 2019 to over 2,900 by 2023, with a large quantum of investments. Many Indian companies have shifted their regional headquarters to Saudi Arabia and a number of them are participating in Iktiva program of Aramco.

"Indian companies are contributing significantly to mega and giga projects under Vision 2030 - spanning civil infrastructure, energy, power transmission, oil & gas, renewable energy, and more. Our technology firms are also playing a central role in the digital transformation of Saudi Arabia. There is increasing interest from Indian businesses in healthcare, pharmaceuticals, hospitality, logistics, mining, minerals, MSMEs, and startups - all sectors vital to both economies' future.

"This is truly a two-way street. Saudi companies too have vast opportunities to invest in India's transformation into a developed economy - especially in infrastructure, logistics, renewable energy, health, and utilities. Saudi Arabia has committed to investing $100 billion in India. The growing corporate synergy between our two countries will be a cornerstone of the bilateral partnership going forward".

On the latest developments in the India-Saudi Arabia electricity interconnection project, Dr. Khan said that "Energy has long been a pillar of India-Saudi Arabia relations. As India powers ahead toward becoming a developed economy by 2047, our energy needs will grow - and Saudi Arabia remains a reliable and strategic partner in meeting them. But the future is green. India has set an ambitious target of 500 GW of renewable energy by 2030, and we're actively collaborating with Saudi Arabia on clean and sustainable energy - including solar, wind, and hydrogen.

"One exciting area of cooperation is electrical grid interconnectivity. An MoU was signed in 2023 on Electrical Interconnections, Green Hydrogen, and Supply Chains, during MENA Climate Week. We're jointly exploring the technical and commercial viability of connecting our power grids. This initiative also complements the India-Middle East-Europe Economic Corridor (IMEEC) launched in 2023, which envisions a more integrated, sustainable, and secure regional energy network. As we advance, energy connectivity will become a major lever of strategic alignment between our two nations", he concluded.

Asharq Al Awsat