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RIYADH: India and Saudi Arabia plan to strengthen their longstanding ties through sustainable initiatives that will expand opportunities for both nations, Indian Commerce and Industry Minister Piyush Goyal said.

On an official visit to the kingdom from 18.-19. On 9 September, the minister met his counterpart Saudi Arabia’s Minister of Commerce Dr. Majid bin Abdullah Alkassabi to discuss economic ties between the Kingdom and India.

He is also set to chair the first ministerial meeting of the Economic and Investment Committee together with Saudi Energy Minister Prince Abdul Aziz bin Salman.

Areas of cooperation between the two nations will include the West Coast Refinery project, Trans-Ocean Grid connectivity and food security, as well as encouraging trade in green hydrogen, pharmaceuticals and energy security.

“The economy and trade relations play an important role in today’s world. My visit this time is meant to create the enabling environment, which will help businesses from both countries engage with each other,” Goyal told Arab News.

“It will help expand the opportunities for our young boys and girls, especially in innovation,” he added.

Convergence in vision

With the Vision 2030 plan to empower small and medium enterprises by paving the way for more significant opportunities, India is playing a major role in encouraging startups in the kingdom through the Make in India initiative.

The minister explained that Saudi Arabia could benefit significantly from the Indo-Saudi partnerships between startups and financing companies, gaining a greater understanding of the market’s development from one of the leading economies.

India has the world’s third largest startup ecosystem, with over 70,000 startups registered under the Ministry of Commerce and 107 unicorns in the country, each valued at over $1 billion and collectively at $340 billion.

“This ecosystem can grow in India, given the strength of financing and the support that Saudi Arabia can provide in terms of capital… We are not competing with each other; we are complementing each other,” the minister told Arab News.

One of the critical objectives of the meeting was to accelerate progress on the $100 billion investment by the Kingdom towards growing various economic sectors in India, announced by Crown Prince Mohammad bin Salman in 2019.

The minister said, “Due to the global uncertainty, some of our ambitious plans for investment flows from Saudi Arabia to India could not materialize, but given the commitment from both sides and the huge opportunities available in India, I now see this moving forward in mission mode.”

Exploring new synergies

Goyal highlighted the various opportunities for the fund discussed with his Saudi counterpart, including clean energy generation, the startup ecosystem, food retail, semiconductors, pharmaceuticals and petrochemicals.

While India is one of the biggest importers of oil from the kingdom, Saudi’s economic diversification, particularly the shift towards a non-oil economy and into newer avenues, was praised by the minister.

“At this time when fossil fuels are facing challenges with climate change, there is an effort to create alternative and renewable energy sources. It is important that Saudi Arabia also embarks on diversifying its portfolio to prepare the country for the future,” the minister said.

“[It] clearly shows that the leadership in Saudi Arabia is truly progressive, modern and visionary,” he added.

As the recent pandemic and the war between Russia and Ukraine have significantly affected most economies, India continues to be one of the fastest growing economies globally, with a 7 percent growth in gross domestic product.

The nation has also mandated the Reserve Bank of India, its central bank, to closely monitor and tame rising inflation rates.

“We have shown a lot of resilience. Our handling of COVID has been greatly appreciated. I must acknowledge and thank the Saudi government, the crown prince and the people of Saudi Arabia for their support during this time,” he said, crediting the kingdom for providing essential medical oxygen supplies to the nation.

Sustainability in the spotlight

One of the biggest initiatives taken by Indian Prime Minister Narendra Modi is his dedication to protecting the environment, dealing with climate change, creating sustainable lifestyles and creating renewable energy sources.

The minister said: “Intergenerational equity requires us to leave a better planet than the one we inherited, and I think both Saudi Arabia and India are committed to that. We want to work together and ensure that both countries work towards a better future for our children.”

India aims to produce 25 million tonnes of green hydrogen annually by 2047 as a first step to reduce energy imports. The country has also developed the idea of ​​a Trans-Ocean Grid, designed to harness solar energy and potentially distribute power globally.

“We have already initiated some studies to see how we can connect the GCC (Gulf Cooperation Council) countries and India through undersea cables and perhaps create a transmission network between the two regions,” he said.

The minister hopes trade relations will also contribute to food and energy security for the two nations on a larger scale.

“We are looking at creating a bridge between India and Saudi Arabia so that food security in Saudi Arabia becomes a responsibility that India will bear. Just as we believe that India’s energy security is the responsibility that our Saudi friends can bear, he said.

“I see this partnership flourishing under the leadership of Prime Minister Modi and His Highness the Crown Prince of Saudi Arabia, to very high levels,” the beaming minister added.