At present, the bilateral trade between the two nations amounts to $52 billion, and Piyush Goyal has discussed the aspiration of elevating it to $200 billion
As per a recent report from PIB, Piyush Goyal, The Union Minister of Commerce and Industry, Food and Public Distribution and Textiles in an interaction with the Minister of Investment, Saudi Arabia, Khalid A. Al-Falih remarked that in the year 2047, i.e., in the ‘Amrit Kaal’, India aims to expand at an unprecedented rate. Goyal further highlighted the importance of the recent G20 Summit held in New Delhi.
He emphasised the fact that India and Saudi Arabia are two of the world’s fastest-growing economies. Moreover, he pointed out that in terms of the World Bank’s ‘Ease of Doing Business’ criteria, Saudi Arabia was placed at number 62 and India was placed at number 63 respectively, although the ranking has been discontinued since 2020. Currently, trade between the two countries stands at $52 billion, but Goyal talked about taking it up to $200 billion.
For this matter, he invited Saudi investors to visit the Gujarat International Finance-Tech City (GIFT) in order to bring investment, considering how well India’s regulatory mechanism has been simplified by appointing only one regulator for carrying out all regulations. Plus, India has brought tax rebates to easily move funds in and out of the GIFT city.
The Union Minister further suggested that the GoI (Government of India) officials along with the representatives of FICCI (Federation of Indian Chambers of Commerce and Industry) encourage startups and open an office in Saudi Arabia. He also talked about striking a balance in trade where India provides Saudi with food security, while Saudi provides India with energy, oil, and fertilisers.
Saudi Arabia’s NEOM city, revolving around the concept of 100% clean energy, is something India could help them in, by providing help in areas of designing, construction, manning, and developing business around. “I think that’s an area where India could contribute significantly,” said Goyal. He also quoted a recent study highlighting that Indian companies have given a 20% CAGR return on investment for 20 years.
Goyal went on to say that the pharmaceutical industry has immense potential and that a better understanding between the two regulatory bodies would be advantageous to the industry. Finally, he stated that Saudis would have greater access to Indian medications, and consequently, the Indian pharmaceutical businesses would invest in Saudi Arabia.
