RIYADH — As we mark 75 years since the establishment of bilateral relations between India and Saudi Arabia, trade and commercial relations continue to be the lynchpin of the strategic partnership between the two countries. This significant component of our bilateral ties has a historic context, with maritime relations between the two regions having been strong since centuries. The historic trade relationship has continued into the modern era, with natural synergies and common challenges and opportunities making Saudi Arabia India's fourth largest trade partner and a major source of energy as India imports around 18% of its crude oil requirement and 30 % of its LPG requirement from the Kingdom. Since the establishment of the Strategic Partnership Council during the visit of Prime Minister Narendra Modi to Saudi Arabia in October 2019 for the Future Investment Initiative summit, economic relations have received special attention. The Economic and Investment Pillar of the Council, co-chaired by the Saudi Energy Minister Prince Abdulaziz Bin Salman and the Indian Commerce and Industry Minister Piyush Goyal, has already seen a number of meetings at official level in the last few months under each of the four Joint Working Groups which consisting of Industry and Infrastructure; Agriculture and food security; IT and Technology; and Energy. Strengthening trade and investment ties despite the pandemic While global trade was reeling last year due to the pandemic, it is heartening to note that India's exports to Saudi Arabia remained relatively resilient. For FY 2020-21, exports from India to Saudi Arabia were $55.86 billion, just about 6% lower than the previous year. This was possible mainly because of the consumer driven nature of India's export basket to the Kingdom. Exports of food products, one of the largest categories of India's exports to Saudi Arabia has remained unaffected, and some items such as cereals and pharmaceutical products have actually shown an increase. This is not surprising as India is one of the preferred partners of the Kingdom for its food security. This focus has also been reflected in the interest shown by Saudi companies in the sector, with SALIC's investment last year in LT Foods being a prime example. Export figures for the new financial year are looking up, and for the months of April–May 2021, exports from India are already at $1.3 billion, more than double compared to the same period last year. There has also been a constant effort to introduce new products from India to the Kingdom. Most recently, the Agricultural and Processed Food Products Export Development Authority (APEDA), in association with Lulu Group, launched the Indian dragon fruit in the Saudi market. On the investments side too, there have been several positive developments. There are 582 Indian companies registered as joint ventures/100% owned entities worth $1.8 billion in the Kingdom as of March 2020, across sectors. Major investment groups include Aramco, SABIC, Zamil, Al-Fanar E-holidays, Samba Financial Group and Al Batterjee Group. Saudi Sovereign Wealth Fund-backed Soft Bank's 'Vision Fund' has invested several billion dollars in Indian start-ups such as Delhivery, FirstCry, Grofers, Ola, OYO, Paytm and Policy Bazaar. Saudi Arabia's Public Investment Fund (PIF) invested $1.5 billion in August 2020 in Jio Platforms for a 2.32% stake. In November 2020, PIF had announced investment of $1.3 billion in Reliance Retail Ventures. However, this is just the beginning and there is definitely huge potential for Saudi companies to invest in India's growing market. This is in line with the Saudi Arabia's plan to invest over $100 billion in India which was announced by the Crown Prince Muhammad Bin Salman during his visit in February 2019. Re-launch of the Saudi India Business Network One of the major steps taken by the Embassy and Consulate has been the re-launching of the Saudi Indian Business Network (SIBN). As the name implies, SIBN is a professional organization that groups together entrepreneurs, senior executives and professionals from both countries to promote trade and commerce, business alliances, joint ventures and investments on a bilateral basis. Brainchild of Dr. Ausaf Sayeed, the then Consul General of India, it was formerly launched on 13th March 2005 in Jeddah by the then Acting Chairman of the Jeddah Chamber of Commerce & Industry, Ghassan Al-Sulaiman. On Sept. 12, 2020, SIBN-Jeddah was formally launched as a pan-Saudi network by the Ambassador Dr. Ausaf Sayeed in a virtual ceremony. Most recently, the SIBN-Dammam Chapter was inaugurated on Aug. 8 in the presence of several leading Saudi and Indian businesspersons and professionals based in the Eastern Province. It is hoped that SIBN will bring together business leaders of both countries and help introduce Saudi and Indian companies to the vast opportunities that exist in either country aid them in project their expertise and strengths in various disciplines for prospective alliances with business & trade organizations. — The writer is Second Secretary (Economic & Commercial) Embassy of India
