Strengthening Bilateral Ties: India and Saudi Arabia Enhance Trade and Energy Cooperation
Key Ideas
  • Prime Minister Modi highlights the growing trade ties between India and Saudi Arabia, focusing on energy, agriculture, and new sectors like green hydrogen and technology.
  • Both countries are working towards a Bilateral Investment Treaty and a Free Trade Agreement to boost economic relations significantly.
  • Collaborations include defense cooperation, renewable energy projects, and the development of the India-Middle East-Europe Economic Corridor to enhance commerce and connectivity.
  • Efforts are being made to explore joint projects in renewable energy, including green hydrogen, and to strengthen security cooperation in areas like counterterrorism and cybersecurity.
During a two-day visit to Saudi Arabia, Prime Minister Narendra Modi highlighted the growing trade relations between India and Saudi Arabia, emphasizing key sectors like energy, agriculture, and the emerging areas of green hydrogen and technology. Modi praised the presence of Indian companies in Saudi Arabia and called for deeper integration of businesses between the two nations. Both countries are working on a Bilateral Investment Treaty and a proposed Free Trade Agreement, aiming to transform their economic relationship. The Strategic Partnership Council, established in 2019, has significantly expanded bilateral relations. The leaders are focusing on defense cooperation, joint military exercises, and strengthening economic ties. Saudi Arabia, a major energy partner for India, has shown interest in investing in the Indian oil sector. Saudi Aramco's renewed talks for re-entry into the Indian market indicate a promising future. Both nations are exploring collaborations in renewable energy, aiming for joint projects in refineries and petrochemicals. Modi highlighted the potential for collaboration in renewable energy, including areas like green hydrogen, circular economy, and energy efficiency. The India-Middle East-Europe Economic Corridor is set to enhance commerce and connectivity in the region. Both countries are working on clean and green hydrogen initiatives under this corridor. The leaders also discussed security cooperation, focusing on counterterrorism, cybersecurity, and defense investments. Overall, the visit emphasized the strong economic and strategic ties between India and Saudi Arabia, with a focus on expanding trade, enhancing energy cooperation, and exploring new avenues for collaboration in various sectors.
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