India and Saudi Arabia have shared a strong economic relationship over the years. The two countries have been significant trade partners with each other, and their trade agreements have continued to expand and evolve.
India and Saudi Arabia have consistently been important trade partners for each other, with India being the fourth-largest importer of crude oil from Saudi Arabia. The two nations have a bilateral trade agreement in place that allows for the exchange of goods and services between them.
The bilateral trade agreement between India and Saudi Arabia was signed in 2006 and has since been amended twice, in 2010 and 2014, to further strengthen and expand the economic relationship between the two countries. The agreement has provided a framework for the exchange of goods and services between India and Saudi Arabia and has been instrumental in boosting the bilateral trade between the two countries.
India`s main exports to Saudi Arabia include food items, textiles, engineering goods, and pharmaceuticals, while Saudi Arabia`s exports to India mainly comprise crude oil, petrochemicals, and fertilizers. The trade between the two countries has grown steadily over the years, reaching approximately USD 34 billion in 2018.
India and Saudi Arabia have also agreed to enhance their economic partnership by cooperating in various other areas, including investment, technology, and infrastructure development. They have also agreed to explore the possibility of establishing joint ventures in various sectors, especially in the field of energy.
In addition to the bilateral trade agreement, India and Saudi Arabia have also signed several other agreements that have boosted the economic relationship between the two countries. For example, in 2012, India and Saudi Arabia signed a memorandum of understanding (MoU) on cooperation in the field of oil and gas, which aimed to expand cooperation in the oil and gas sector and enhance investment in the sector.
Furthermore, in 2019, Saudi Crown Prince Mohammed bin Salman visited India and signed investment agreements worth over USD 100 billion. The agreements were focused on developing and strengthening the economic relationship between the two countries and included investments in sectors such as energy, infrastructure, and defense.
In conclusion, India and Saudi Arabia have a strong economic relationship. The bilateral trade agreement between the two countries has been instrumental in boosting the trade between them. The two countries have also signed several other agreements to enhance their economic partnership and explore new avenues of cooperation. All of these agreements have helped to create more opportunities for businesses and investors in both countries.