In 2019, the Saudi Crown Prince Mohammed bin Salman announced that Saudi Arabia would invest over 100$ billion in India's infrastructure, mining, petrochemicals, refining and manufacturing, agriculture and other sectors, but the novel coronavirus almost halted all the business activities around the world. However, now the world's largest oil exporter said that it's investment plans in India are again on track, assessing that the Indian economy has the strength to recover from the adverse impact of the coronavirus crises. “Our plans to invest in India are on track and we are in discussion to prioritise investment opportunities in several sectors in both countries”, Saudi Arabia Ambassador Dr Saud Bin Mohammed Al Sati told PTI in an interview.
Saudi Arabia values India as a strategic partner and a close friend, and AI Sati explained the same and complimented India's actions to revive its economy because of the impact of the pandemic and said the economic recovery of both the nations will help elevate other economies in the region as well. Al Sati similarly mentioned the economic relief package provided by India for it's most prominent sectors.
As the fifth-largest global economy and the largest economy in South Asia, the Indian economy has the momentum to recover from the impact of the ongoing COVID-19 pandemic. Earlier this month, the first-ever visit by the head of the Indian Army came to pass when Gen M.M. Naravane travelled to Saudi Arabia's capital Riyadh, where he held meetings with the top military associations of Saudi. The two nations set up the Strategic Partnership Council during the Prime Minister Narendra Modi's visit to Riyadh in October 2019. Without commenting on the Gen Narvane's visit to Saudi earlier this month, the Ambassador AI Sati said that the setting up of the Strategic Partnership Council by the two nations have opened new areas of cooperation in multiple economic sectors and other crucial sectors like defence, security and counter-terrorism. When asked about the political development in Yemen, the Saudi Ambassador explained the forming of the new government in that nation is a significant step in the context of implementing the Riyadh Agreement. The Riyadh Agreement was put up by Saudi Arabia to end hostiles between Yemen's internationally recognised government and southern separatists of the region.
AI Sati also praised the leadership on both sides which have improved this transformation for Saudi-India ties. From energy cooperation and increasing trade relations to health cooperation, the value of this bond has allowed expanded growth for both. On trade partnership, the ambassador referred to the decision by the Saudi Public Investment Fund (PIF) to invest approximately 1.3$ billion in Reliance Retail and 1.5$ billion in Reliance's Jio Platforms. Saudi Aramco is also committed to investing in India's energy sector. Aramco's commitment to invest in the West Coast refinery petrochemical project signifies the interest Saudi Arabia places in the development of India's energy sector. AI Sati also highlighted Saudi Arabia's recent Labor Reform Initiative (LRI), explaining that they will further help Saudi Arabia and India to solidify their economic relationship. “It will enhance the contractual relationship between workers and employers and will support the Kingdom's vision of establishing an attractive job market, empowering and developing labour competencies and developing the work environment”, Al Sati explained.
This new step will also contribute towards reducing the disparity between Saudi Arabian workers and migrants. The positive economic benefits are largely expected out of the LRI which include the development of the local Saudi market, the flexibility of work and help in achieving the goals of Saudi Arabia's vision 2030 through their national transformation programme. This new initiative will welcome an improving efficiency of the work environment in Saudi Arabia and will complement similar initiatives launched in the regard. And similarly, Saudi Arabia will continue to explore new investment opportunities in India.
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Reference:
- www.moneycontrol.com
- www.ptinews.com
- www.m.economictimes.com
- www.arabnews.com