India, Saudi Arabia to boost economic cooperation

K Raveendran

Prime minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman Al Saud, who is on a state visit to India, co-chaired the first leaders’ meeting of the Strategic Partnership Council, a bilateral agreement between India and Saudi Arabia signed by the two nations in Riyadh in 2019.

They assessed the progress of the two ministerial committees of the Strategic Partnership Council, namely the Political, Security, Social and Cultural Cooperation Committee and the Economy and Investments Cooperation Committee.

They also discussed all aspects of bilateral relations, including political, security, defence, trade, economy, culture, and people-to-people ties.

During the two-day G20 Summit in New Delhi, Saudi Arabia was one of the signatories to the ambitious India-Middle East-Europe Economic Corridor.

The initiative, seen by many as a potential alternative to China’s Belt and Road Initiative, was jointly announced by PM Modi and the leaders of the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union on the sidelines of the G20 summit.

“Yesterday, we took a decision to start a historic economic corridor between India, West Asia and Europe. This corridor will not only connect two countries but also help in providing economic growth, and digital connectivity between Asia, West Asia and Europe,” PM Modi said.

Once completed, the project can serve as a modern-day Silk Road that functioned as the central trade route facilitating economic partnerships, political alliances, and cultural integration across continents.

Prime Minister Modi also cited Saudi Arabia’s ‘Vision 2030’ initiative, an all-encompassing nationwide reform programme launched in 2016 for the economic, cultural and architectural development of the Middle Eastern country.

“Under your leadership and Vision 2030, Saudi Arabia has seen tremendous economic growth and I congratulate you for that,” PM Modi said.

India is Saudi Arabia’s second-largest trading partner, while Saudi Arabia is India’s fourth-largest. The two countries have a strong partnership in the energy sector, with India importing a significant amount of oil from Saudi Arabia.

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Also published on Medium.