India, the world’s third largest crude oil importer, and oil-rich Saudi Arabia resolved to cooperate in energy transition during Union commerce minister Piyush Goyal’s recent Riyadh visit, and the two partners have decided to also exchange their expertise in accelerating economic growth.
Goyal held “fruitful” ministerial engagements in Riyadh with ministers of energy, industry and mineral resources, and investment, focusing on “collaborative initiatives” in trade, energy, and technology, the commerce ministry said on Friday after the conclusion of the Saudi Arabia visit.
“These discussions culminated in a series of actionable agreements, aimed at enhancing trade volumes and facilitating a smooth flow of investments between the two countries. The agreements emphasise cooperation in energy transition, digital transformation, and the exchange of expertise to accelerate economic growth,” the ministry said.
Goyal also co-chaired the 2nd Ministerial Meeting of the Economy and Investment Committee under the India-Saudi Strategic Partnership Council (SPC) along with Saudi Arabia’s energy minister Abdulaziz bin Salman Al-Saud on October 30 in Riyadh. The Committee reviewed the progress achieved by the four joint working groups (JWGs) — agriculture and food security; energy; technology and information technology; and industry and infrastructure.
“They noted the deepening of bilateral economic partnership between India and Saudi Arabia and deliberated on ways to enhance trade and investment,” it said. The committee noted the deepening of bilateral economic partnership between India and Saudi Arabia and deliberated on ways to enhance trade and investment, it added.
The SPC was established in 2019 following the visit of Prime Minister Narendra Modi to Saudi Arabia in October that year. During the visit of Crown Prince Mohammad bin Salman to India in February 2019, the Kingdom announced to invest about $100 billion in India in various fields including tourism, housing, and exchange of audio-visual programmes.
During the Saudi Arabia visit, Goyal participated in the plenary session of the 8th edition of Future Investment Initiative (FII), where he urged global investors to seize emerging opportunities in India, particularly in high-growth sectors such as artificial intelligence, renewable energy, digital infrastructure, and advanced manufacturing.
India is the second largest trade partner of Saudi Arabia whereas Saudi Arabia is the fifth largest trading partner of India, according to government data. The bilateral trade between the partners stood at $43.3 billion in 2023-24. India exported merchandise worth $11.56 billion during the period and Saudi exports in the same period was $31.8 billion.
There were around 2,783 Indian firms, including corporate groups such as L&T, TATA, Wipro, TCS, and Shapoorji & Pallonji present in the Kingdom with approximately $2 billion investments as of January 2022. Saudi Arabia’s direct investments in India amount to $3.15 billion in March 2022. Major Saudi investment groups in India include ARAMCO, SABIC, ZAMIL, E-holidays, and Al Batterjee Group. The sovereign wealth fund of Saudi Arabia, the Public Investment Fund (PIF), also invested approximately $4.6 billion in many Indian start-ups through the Soft Bank’s Vision Fund.
During his Riyadh visit, Goyal also met with Schneider Electric CEO Peter Herweck and, General Atlantic CEO and chairman William E Ford to discuss India’s economic landscape and investment opportunities across sectors, the ministry said in a statement. In recent years, many bilateral agreements have been formalised between India and Saudi Arabia, covering sectors such as food exports, pharmaceuticals, electrical interconnectivity, energy, small and medium enterprises, digitization and electronic manufacturing. Both countries are also exploring collaboration in emerging fields like fintech, new technologies, energy efficiency, clean hydrogen, textiles and mining, it said.
The minister launched the Lulu Wali Diwali Festival at the Lulu Hypermarket by lighting a Big Diya made with LED, furthering India-Saudi cultural and economic ties. The Diwali Utsav, organised in partnership with Lulu Hypermarket, is showcasing an array of Indian products, from festive decor and traditional foods to handicrafts. The launch was followed by unveiling of a giant product wall comprising 10,000+ Indian products including Ghee from Uttarakhand, Ladakh Apple, Indian Cavendish banana, Dragon Fruit from Maharashtra, new range of Millets based breakfast cereals, and Qaadu Organic beauty products, the statement said.
At the Indian Embassy in Riyadh, Goyal unveiled the One District, One Product (ODOP) Wall, featuring unique products from various districts across India. The ODOP initiative, part of the Government of India’s “Vocal for Local” campaign, aims to promote regional craftsmanship by showcasing the rich cultural heritage of India through distinctive, high-quality products, it said.