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FEBRUARY 2019
Saudi Crown Prince Mohammed bin Salman’s visit to India in February 2019 — as part of a larger tour of Asia including Pakistan and China.
SOME THINGS YOU SHOULD KNOW
Saudi-India bilateral trade was $27.48 billion during the year 2017-18, making Saudi Arabia India’s fourth largest trading partner.
Saudi Arabia contributes about 20 percent of India’s crude requirements.
NOTES
Employment – The 2.7 million strong Indian community is the largest expatriate group in Saudi Arabia. (Total population of Saudi Arabia – 3.30 crore)
They send remittances of over US $11 billion annually to India.
Pilgrimage – The Saudi Kingdom facilitates Hajj pilgrimage to over 1,75,000 Indians every year.
This is one of the major reasons why Saudi Arabia is an important country for India.
INDIA IS FAR AHEAD THAN PAKISTAN IN TRADE WITH S ARABIA
Pakistan and Saudi Arabia have touched new high with investment of $20 billion, including $10 for refinery and petrochemical complex in Gwadar, as announced by Crown Price Mohammed bin Salman but if compared with India’s ties, the ground reality is otherwise.
Pakistan’s bilateral trade with Saudi Arabia stood at $1.871 billion in 2017-18 with exports of just $170 million and imports of $1.7 billion, but the trade of India with Saudi Arabia reached at $27.48
Saudi Arabia’s exports to India stood at $22.06 billion whereas India’s exports were $5.41 billion in the last financial year.
BUT PAKISTAN AND SAUDI ARABIA HAVE STRATEGIC TIES
Saudi Arabia gave a grant of $1.5 billion to Pakistan in early 2014 to become balance of payment issue.
And during the era of Imran Khan as Prime Minister of Pakistan, Saudi Arabia has extended $3 billion loan to remain in Pakistan foreign exchange reserves with $3 billion oil facility for three years to again support of balance of payment issue showing Pakistan will have the oil facility of $25 million every month.
INDIA AND SAUDI ARABIA
Strategic Partnership -The Riyadh Declaration of 2010 had forged a Strategic Partnership between India and Saudi Arabia.
Saudi Arabia has identified India as one of the 8 strategic partners.
STRATEGIC PARTNERS FOR SAUDI ARABIA
India is among eight strategic partners with whom Saudi Arabia intends to deepen engagement in the areas of politics, security, trade and investment and culture.
The other partners are China, Japan, South Korea, the US, Germany and two European powers.
SAUDI ARABIA INDIA
Security – The Strategic Partnership includes security cooperation. Riyadh has largely shown an understanding of India’s terrorism-related concerns, and has agreed to work with India in countering the global menace.
During Indian PM’s 2016 visit, an MoU on cooperation in the exchange of intelligence related to money laundering and terrorism financing was also signed.
RECENT VISIT TO INDIA
The following MoUs were signed during the visit – MoU on investing in the National Investment and Infrastructure Fund of India. Oil-rich Saudi Arabia sees an investment opportunity of $100 billion in India in various sectors, said visiting Crown Prince Mohammed Bin Salman
The crown prince said Saudi Arabia has already invested $44 billion in India since the visit of Modi in 2016 to the Gulf nation.
RECENT VISIT TO INDIA
- MoU on cooperation in the field of Tourism.
- MoU on cooperation in the field of Housing.
- Framework cooperation programme between Invest India and Saudi Arabia General Investment Authority (SAGIA).
- MoU for cooperation on Broadcasting for exchange of Audio-Visual Programmes.
Agreement for the Kingdom of Saudi Arabia to join the International Solar Alliance (ISA) launched by Honourable Prime Minister Modi.
Prime Minister expressed his thanks to the Custodian of the Two Holy Mosques and to Highness the Crown Prince for increasing the quota for Hajj pilgrims from India to 200,000 to reflect the latest census. the release of 850 Indian prisoners from Saudi jails.
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