India-Saudi Meet: Over a dozen agreements and economic corridor wows the world
Agreements made in the field of digitisation, Anti-corruption, Desalination, Banks for MSME businesses and more. Transactions in local currency also on the table.
Between Indian and Saudi Arabian businesses, more than 20 Memoranda of Understanding were inked. These agreements covered a variety of industries, including information technology, agriculture, pharmaceuticals, petrochemicals, and human resources.
Private businesses from both nations, including Serum Institute of India, HP, VFS Global, and ICICI Bank, signed these MoUs. The investment ministries of Saudi Arabia and India helped to facilitate the signing of the MoUs.
The key agreements between the two powerful economies after the successful hosting of G20 were to bolster bilateral relations in the fields of:
- Digitisation and Electronic Manufacturing
- Cooperation between India’s Central Vigilance Commission and Saudi Anti-corruption
- Agreement between two EXIM Banks and SIDBI and SME Bank of Sudi Arbaia
- Desalination
- Renewable Energy
- Agreement between National Archives namely Ministry of Investment and Invest India
- Other fields included Information technology, agriculture, pharmaceuticals, petrochemicals and human resources etc.
Travel and Hospitality
In order to establish a travel and hospitality college in Riyadh, Saudi Arabia, VFS Global and the Ministry of Investment of Saudi Arabia (MISA) inked a memorandum of understanding. Upskilling in the travel and hospitality industries will be offered by VFS.
New Economic Corridor
The Saudi-India Investment Forum meeting also discussed the India-Middle East-Europe Economic Corridor predicted to be “equivalent to the Silk Route and Spice Route put together” by Saudi investment minister Khalid al-Falih.
He said, “The economic corridor will be historical. People talk about the Silk route, the Spice route of India through the Arabian Peninsula, but this is going to be more significant and relevant. Because it’s going to be about new energy, data, connectivity, human resources, aviation routes and it’s about aligning countries that are of the same mind and same vision.”
“Both countries (Saudi Arabia and India) have great human capital and access to financial resources. The next step is to make sure that the private sector fully understands what we have right before them, in terms of opportunities… we need to clear the roadmap for them and I think great things will happen.”
Asked about the proposals, Ausaf Sayeed, a secretary in the Foreign Ministry, spelled out that the corridor would include trains to India and not just links by port.
“India would be connected by railroads is the right interpretation, rather than India building the railroads,” he said in response to a question at a media briefing.
The rail and maritime route is a component of the Partnership for Global Infrastructure Investment (PGII), a joint initiative of the G7 to finance infrastructure initiatives in developing countries. PGII is regarded as the alliance’s response to China’s Belt and Road Initiative.
This effort of a corridor has been celebrated by Anand Mahindra on ‘X’ (erstwhile Twitter) as well.
More Agreements: Local Currencies, Oil, Optics Fibers and Defence Paraphernalia
India and Saudi Arabia also discussed the potential for trading in local currencies and accelerating the negotiations for a free trade agreement between India and the Gulf Cooperation Council, of which Saudi Arabia is a member, during Saudi Crown Prince Mohammed bin Salman’s state visit to New Delhi on Monday.
The biggest oil suppliers to India are Saudi Arabia and Kuwait.
Additionally, they agreed to establish a collaborative task force for $100 billion in Saudi investment, half of which is designated for a postponed refinery project along India’s western coast, according to Sayeed.
In addition to ports, railroads, and improved highways, Sayeed stated that the new corridor will also feature an optical fiber network and electricity and gas grids.
The Indian leader and the Saudi crown prince discussed partnership in the manufacture of defense products, semiconductors, and space technology during their earlier-in-the-day meetings.
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