Saudi Arabia is to move for a joint holding company with India during the forthcoming bilateral trade meetings that will be held concurrently with the visit of Crown Prince Salman, deputy premier and minister of defense, to New Delhi from Wednesday.
Chairman of the Council of Saudi Chambers Abdullah Al-Mobty said that such a body, based in the Indian capital of New Delhi, should have a joint capital and should be aimed at enhancing Saudi-India relations to support enterprises among the business sectors in both countries and promote training programs and encourage knowledge sharing in addition to supporting SMEs and nonoil products.
Al-Mobty revealed that discussions will be taking place between Saudi businessmen and their Indian counterpart, as part of their official visit to New Delhi, which will coincide with the visit of the crown prince.
Concerning the meetings between Saudi and Indian businessmen, Al-Mobty stated that the council has great trust in the joint council to promote ties between the two friendly countries, adding that both countries are equipped with distinctively diverse economies that could be capitalized on for the benefit of their respective nations.
There are about 2.8 million Indians working in the Kingdom. Several new joint ventures like the Saudi Basic Industries Corporation (SABIC) center with an initial investment of $100 million in India and TATA Motors’ Jaguar project have come up in the Kingdom.
Saudi Arabia is the 4th largest trading partner for India; the value of the two-way trade between the two countries in 2012-2013 exceeded $43.78 billion and $32.7 billion during April-November 2013. The import of crude oil by India forms a major component of bilateral trade with Saudi Arabia being India’s largest supplier of crude oil, accounting for almost one-fifth of its needs.
During the current year, Saudi Arabia is the 6th largest market in the world for Indian exports and is destination of more than 4.08 percent of India’s global exports. On the other hand, Saudi Arabia is the source of 8.05 percent of India’s global imports.
For Saudi Arabia, India is the 5th largest market for its exports, accounting for 8.3 percent of its global exports. In terms of imports by Saudi Arabia, India ranks 7th and is source of around 3.4 percent of Saudi Arabia’s total imports (2012 figures).
Main Indian exports include mineral fuels, mineral oils and products thereof, cereals, electrical machinery and equipment, iron and steel, organic chemicals, meat, and articles of apparel and clothing accessories.
India’s major imports from Saudi Arabia are mineral fuels, mineral oils and products, organic chemicals, plastics and plastic articles, inorganic chemicals, fertilizers, aluminum and articles, iron and steel, copper and articles, miscellaneous chemical products, raw hides and skins (other than furskins) and leather.