ECONOMIC TIES TO DEVELOP INDO-SAUDI STRATEGIC PARTNERSHIP – IMMENSE POTENTIAL TO STEP UP BILATERAL TRADE: ANAND SHARMA
Date : 26 Nov 2010
Location : New Delhi
Shri Anand Sharma, Union Minister of Commerce and Industry, in a meeting with the Saudi Arabian Minister of Commerce and Industry, Mr. Abdullah bin Ahmed Zainal Alireza, here today, stated that the economic ties would constitute a very solid foundation for the development of Indo-Saudi Strategic Partnership. The Minister further added that while the trade ties at present are already quite substantial, there is immense potential for taking the bilateral trade relations to the higher level. Shri Sharma also informed to his counterpart that strategies to be developed for increasing volume of trade in traditional items and diversify the trade basket.
Both sides felt that the focus is to be shifted to investment and joint ventures for enhancing trade as well as services and added that regular exchange of business delegations for sensitizing the businessmen of both countries is to be emphasized in future. Shri Sharma said that India is keen to set up Joint Ventures for gas based fertilizer plant in Saudi Arabia. Indian companies have evinced keen interest in setting up of such projects in the Kingdom of Saudi Arabia.
During the interaction, Shri Sharma said that the total trade between India and Saudi Arabia has increased by many folds from US $ 3442.11million in 2005-06 to US $ 21004.57 million in 2009-10. The exports to Saudi Arabia have increased from US $ 1809.77 million in 2005-06 to US $ 3907.00 million in 2009-10. Major item of export to Saudi Arabia are Petroleum Products; Rice Basmati; Non-Ferrous Metals; Machinery and Instruments; Dyes/ Intermediary & Coal Tar Chemicals etc. Similarly, the imports from Saudi Arabia has increased substantially from US $ 1632.34 million in 2005-06 to US $17097.57 million in 2009-10 and the main items of imports are Petroleum Products, Organic Chemicals, Artificial Resin, plastic, Material etc;
The foreign direct investment (FDI) from Saudi Arabia during April 2000 to August 2010 is to the tune of US $ 31.59 Million. Main sectors attracted FDI from Saudi Arabia are electrical equipments, food processing industries, automobile industry, computer software &hardware; and telecommunications.