India and Saudi Arabia on Sunday affirmed their commitment to take their relationship to the next level and be strategic partners for promoting peace, stability and economic development.
While Prime Minister Manmohan Singh, on the second day of his visit to Saudi Arabia, termed Saudi Arabia a strategic partner and invited Saudi funds to India in a number of sectors, top political leaders of Saudi Arabia also agreed that the vast potential in trade and investment still needed to be tapped.
Three key Saudi Arabian Ministers — Foreign Affairs, Commerce and Oil and Natural Gas — met Dr. Singh and there are indications that a number of joint ventures and investments could come in fields such as petrochemicals, fertilizers, healthcare and information technology. “Most importantly, Saudi dignitaries saw India as a safe and secure destination for investments and favoured substantial increases in investment in India,” senior officials said here.
Both sides expressed satisfaction that trade had touched $ 26 billion and was further set to rise. Aramco, the Saudi petrochemical giant, has accessed goods and services worth $ 400 million from India.
Dr. Singh pointed out to Saudi dignitaries and Ministers that both the countries already had a double taxation avoidance agreement and bilateral investment protection agreement.
A joint commission also exists and the two sides are keen to finalise an India-Gulf Cooperation Council Free Trade Agreement which will further boost India’s trade with GCC members.
Growth rate
Addressing top captains of Saudi business and industry, the Prime Minister said that despite the global economic slowdown, India hoped to achieve a growth rate of over 7 per cent in the current fiscal and expected to get back to the growth level of about 9 per cent per annum within two years. “Our domestic saving rates are high, and can support investment rates of as high as 38 per cent of our Gross Domestic Product. India is an economy with a huge market, and a young and expanding work force. We have a vibrant and innovative private sector,” Dr. Singh told Saudi business and industry leaders where top Indian CEOs were also present. Two agreements by Tatas and public sector RITES were also signed.
India’s efforts towards West Asia peace process and the Arab Peace Plan were discussed with Saudi Ministers. On developments in India’s neighbourhood on some recent issues, views of Saudi Arabia were sought, officials disclosed. “Both the sides took note of each other’s concerns. It was more of an exchange of views on sensitive issues,” the officials said.
The Prime Minister is set to call on King Abdullah bin Abdul Aziz, custodian of the two holy mosques, and many agreements are likely to be inked.
Source: http://www.hindu.com/2010/03/01/stories/2010030160380100.htm
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