NEW DELHI: India and Saudi Arabia on Monday decided to expedite the implementation of the USD 50 billion west coast refinery project during the talks between Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al-Saud. The refinery-cum-petrochemical project in Maharashtra was planned in 2015.
Both sides also identified energy, defence, semiconductors, and space as areas for intensified cooperation.
They also agreed to diversify the current status of their hydrocarbon relationship into a “comprehensive energy partnership.”
The two countries signed eight pacts to boost cooperation in a whole range of areas, including digitisation and investment. Trade in local currencies was part of the talks but is just at the discussion stage as of now.
A joint statement said both sides also stressed the importance of strengthening security cooperation to combat terrorism and its financing. They rejected any attempt to link terrorism to any particular race, religion or culture. Saudi Prince Mohammed bin Salman is on a state visit to India. He stayed back after attending the G20 meeting during the weekend.
India’s exports to Saudi increased to USD 10.72 billion in 2022-23 from $8.8 billion in 2021-22, while its imports went up to USD 42 billion in 2022-23 from USD 34.1 billion in FY22, mainly on the back of oil shipments. Saudi investments in India stood at USD 3.22 billion as of June 23.
“The scope for cooperation in grid connectivity, renewable energy, food security, semiconductors, supply chains is immense,’’ Modi said. Saudi is one of India’s most important strategic partners, he added.
India is Saudi’s second-largest trading partner while the West Asian country is India’s fourth-largest trading partner. Union Minister Piyush Goyal said bilateral trade has the potential to reach USD 100 billion.
At the G20 Summit, India, the US, Saudi Arabia, and the European Union announced an agreement to set up an India-Middle East-Europe shipping and railway connectivity corridor in a counter to China’s Belt and Rail initiative. The Arab nation said it is also considering setting up a sovereign wealth fund office in GIFT City for investment facilitation