Saudi Gazette RIYADH — India and Saudi Arabia should move beyond just export-import ties to a larger cooperation, Indian Prime Minister Narendra Modi told a gathering of top Saudi and Indian businessmen at the Council of Saudi Chambers here on Sunday. Modi began by saying that he was honored to be only the fourth Indian prime minister to visit the Kingdom. "During one of my talks with King Salman he told me that he had been taught in his early years by an Indian teacher. This shows our relations are really deep. In this distressed global economy India is a ray of hope and it is the fastest growing economy." He said India has the advantage of three important elements: demographic dividend, demand and democratic values with a perfect judicial system. In demography, he said, we have eight million youth who are 35 or less and they are skilled. Demand is from a very big market. And our democratic values and the judicial system have allowed international firms to grow and flourish. This is the reason our FDIs have grown by 40 percent, he said. Flanked by Saudi Minister of Commerce and Industry Tawfiq Al-Rabiah and Minister of Economy and Planning Adel Fakeih, the prime minister listed a number of sectors where Saudis can invest. He said that his government is putting emphasis on infrastructure development, quality of life and upgrading technology. He said India is focusing on the ease of doing business, and that has been acknowledged in the recent budget with policy initiatives. The World Bank too has upgraded India 12 points this year and their next survey would post India much higher. Modi said that innovation is his prime focus. In this connection, he mentioned the huge investment potential in the manufacturing of medical devices and defense equipment. He said 100 percent FDI has been opened in the medical device sector while emphasizing the global shift toward holistic treatment, in which it has years of experience, allows for growth in health tourism. He stressed that India has the manufacturing capability and the defense equipment sector could benefit Saudi investors. How? India is a manufacturing base and also a big buyer of defense equipment. The prime minister was responding to a query by Kamel Al-Munajjed, president of the Saudi-Indian Business Council, who had raised questions about the parliamentary deadlock on GST Bill, land reforms and the government's promise on tax-friendly environment and transparency in business. He also called for an initiative to open Islamic banking in the solid Indian banking sector. Modi's response was that the government has brought about administrative reforms that would make business environment-friendly, and that GST will happen. "It will definitely happen today, tomorrow or anytime in the future even though it is an internal matter," he said. On the tax issue, he said retrospective taxation is the thing of the past. "You can rest assure that you will have an easy tax regime and I am introducing a long-term system that will make taxation predictable." On banking, Modi said India has streamlined the banking sector and made it responsive along with state governments, for the states to have a stake in the sector. "Foreign banks are already in India in large numbers and we welcome Saudi banks too." He said that Saudi Arabia could help India in the petroleum sector because of its know how in offshore drilling, because India has an initiative in deep sea offshore drilling and the market has been opened for FDIs. "I promise you that we have set up a transparent policy and the sector will be market driven. You have the experience, and we will have a share in its growth." But Modi's most tangible and innovative offer came in renewables. "We are already in solar equipment setting and manufacturing and wind turbines. Thinking ahead, we have to be innovative to use technology in such a way that we can get energy and water from wind turbines, which need to separate humidity in air into pure drinking water and wind energy." As to the listing of the mining sector, he said, "You have gold, I don't. But I have black gold. In this global climate where fossil fuel is derided, I would like to go for underground mining, an expertise the Kingdom has. We can go for coal gasification so as to provide clean energy. It can be a long-term association, even over 100 years. You can come forward and invest and we can join hands." He identified railways as one of the areas in which Saudis can invest and benefit. "Our railways is the second largest in the world and I hope to double (the length of the tracks) and upgrade it. The sector has been opened up 100 percent." He also spoke of his plans to build 50 million low-cost housing units. "It is like building a Saudi Arabia in India," he said. There is a huge investment potential in this sector also, as in the insurance sector which also has been opened up. He stressed on the growing need for the two countries to come together in cyber security because any new innovation gets irrelevant in few days. He gave the example of a secure innovation being made obsolete by hackers who come up with their own malware, and we need to counter them with proper management. Earlier, the Saudi commerce minister welcomed Modi to what he said was his second home. He called for a broad based engagement to deepen bilateral ties and encourage the private sector by exploring the possibilities of new joint ventures. "The volume of trade exchange between the two countries reached $150 billion." He said the 11th Saudi-Indian joint commission meeting was held in India in May 2015, and this year Riyadh will host the joint meet. "We hope for further cooperation following such meetings." In his opening remarks, Chairman of the Council of Saudi Chambers Dr. Abdulrahman Al-Zamil said that 400 licenses have been granted by the Saudi Arabian General Investment Authority (SGIA) to Indian businessmen while opening the floor to six Saudi and Indian businessmen. Al-Munajjed, president of the Saudi-Indian Business Council, welcomed Modi in Hindi, "Main aapka Saudi Arabia me swagat karta hun (I welcome you in Saudi Arabia.) On the Indian side, Tata chairman Cyrus Mistry and Managing Director of EMKE LuLu group M.A. Yusuffali welcomed the prime minister.
