Saudi Arabia is important player in today’s global economy: Dr. S. Jaishankar

RIYADH — Saudi Arabia is certainly an important player in today’s global economy, not only due to its impressive growth numbers, but also due to its central position in the energy markets, said Indian External Affairs Minister Dr. S. Jaishankar to a question during an interview with Saudi Gazette on Saturday.

“The Kingdom is an important economic partner for India, with nearly $42.86 billion worth of trade during FY22 (April 2021 – March 2022),” Dr. S. Jaishankar said while responding to the query whether the Strategic Partnership Council will provide for increased engagement and interaction from India.

To another question on whether India will be exploring investment opportunities in the Kingdom, Dr. S. Jaishankar said, recent years have witnessed a sharp rise in our bilateral investment exchanges. I am glad to note that Saudi Arabia is now the 18th largest investor in India with investments amounting to $3.15 billion.

He added, “Since the formation of our Strategic Partnership Council, the Public Investment Fund (PIF) has made investments to the tune of $2.8 billion in digital and retail sectors of India. Similarly, Indian investments in the Kingdom of Saudi Arabia have also reached $2 billion and are distributed across varied sectors of IT, construction, hospitality, transportation etc.

“The four Joint Working Groups under the Economic pillar of the SPC are already in discussions to finalize more investment opportunities in diverse sectors of renewable energy, digital economy, mining, refining, petrochemicals, infrastructure, agriculture, manufacturing, education and health among others. I am hopeful that our investment partnership will strengthen further in the coming years.”

Dr. S. Jaishankar is on his first visit to the Kingdom of Saudi Arabia as External Affairs Minister, and is here to co-chair with Foreign Minister Prince Faisal Bin Farhan the inaugural Ministerial Meeting of the Committee on Political, Security, Social and Cultural Cooperation (PSSC), established under the framework of the India-Saudi Arabia Strategic Partnership Council.

Saudi Gazette spoke with Dr. S. Jaishankar at Riyadh and covered a wide ambit of the bilateral relations between Saudi Arabia and India on Saturday. Here are the excerpts:

Q: Much of the world has felt the impact of grain shipment disruptions following the Ukraine conflict, with the Middle East was among the hardest hit. India has emerged as a stable food supplier so will food security figure during the Strategic Partnership Council (SPC) meet and how do the nations propose to tackle the issue?

A: India has traditionally been a key food supplier to Saudi Arabia. Agro and food products form a major part of our export basket to the Kingdom. It is worth noting that India’s rice exports to the Kingdom alone are close to the value of $1 Billion. Food security is one of the key agendas under the SPC framework. In fact, under the Economy and Investment pillar of Strategic Partnership Council, we have dedicated a Joint Working Group “Agriculture and Food Security” through which we are having regular interactions on this aspect.

India has been ensuring food security for the partner nations in the Middle East as well. The list of top nations importing wheat from India includes UAE, Yemen, Qatar and Oman. This year, India has exported wheat to approx. 23 countries and the rate of its exports has increased nearly four times. This has happened despite the losses to our wheat harvest by the heat wave.

Q: The Saudi Public Investment Fund (PIF) has focused its investments in the food and health sector in India. Will the SPC provide investment opportunities for the Saudis in other sectors, especially renewables and technology, and will India explore investment opportunities in Saudi Arabia, especially in mining and industries — the sectors the Kingdom is opening up?

A: Recent years have witnessed a sharp rise in our bilateral investment exchanges. I am glad to note that Saudi Arabia is now the 18th largest investor in India with investments amounting to $3.15 billion. Since the formation of our Strategic Partnership Council, PIF itself has made investments to the tune of $2.8 billion in digital and retail sectors of India. Similarly, Indian investments in the Kingdom of Saudi Arabia have also reached $2 billion and are distributed across varied sectors of IT, construction, hospitality, transportation etc.

The four Joint Working Groups under the Economic pillar of the SPC are already in discussions to finalize more investment opportunities in diverse sectors of renewable energy, digital economy, mining, refining, petrochemicals, infrastructure, agriculture, manufacturing, education and health among others. I am hopeful that our investment partnership will strengthen further in the coming years.

Q: With India being the next host of the G20 summit, it is likely to set the G20 agenda that catalyzes the creation of new food supply chains, while managing immediate food shortages, forge alliances in climate action and climate commitments and create mechanisms that strengthen the capacity of developing countries to tackle health crises. Will you take Saudi Arabia on board in the SPC on these issues, and how the two nations will work together to achieve this in the summit?

A: India and Saudi Arabia are already working closely, on the platform of G20, on these topics of global concern. Saudi Arabia had taken the lead especially to tackle the issues of health crises and climate change during its Presidency in 2020, and we are looking forward to take forth those initiatives. These issues are also being taken up during our bilateral discussions under the framework of Strategic Partnership Council.

Q: Saudi Crown Prince Mohammed Bin Salman told The Atlantic magazine in an article published in March that the potential in the world today is in Saudi Arabia, and this statement gains additional weight with the Kingdom accelerating at nearly 9% growth. Will the SPC provide for increased engagement and interaction from India?

A: Saudi Arabia is certainly an important player in today’s global economy, not only due to its impressive growth numbers, but also due to its central position in the energy markets. The Kingdom is an important economic partner for India, with nearly $42.86 billion worth of trade during FY22 (April 2021 – March 2022).

The Strategic Partnership Council provides a mechanism for increased engagements across nearly all domains of bilateral cooperation between the two countries. The Economic and Investments Committee has four Joint Working Groups, namely, I) Agriculture & Food Security; II) Energy; III) Technology & Information Technology; and IV) Industry & Infrastructure. Discussions between both sides across these four Joint Working Groups are certainly increasing the economic cooperation between the two countries. The forthcoming visit of the Indian Minister of Commerce & Industry to the Kingdom to co-chair the Ministerial meeting of the Committee, along with the Saudi Energy Minister, should further strengthen bilateral economic collaboration.

Q: Saudi Arabia is a long-time, reliable partner in catering to India’s energy needs. Over the years, the nations have progressed from a buyer-seller relationship to a strategic partnership in terms of prospective Saudi investments in the downstream energy sector with Saudi Aramco venturing into India’s refinery business. How will the SPC further boost the synergy in energy?

A: Energy is indeed one of the keystone areas in our bilateral cooperation. Apart from our traditional trade in the field of energy, both the nations are now collaborating in the domains of new and renewable energy. The Joint Working Group on Energy has identified 19 project opportunities for collaboration, which include investments in LNG infrastructure and multiple renewable energy projects, human capacity building and joint research.

Q: Indian Prime Minister Narendra Modi has reiterated India’s intention to work hand-in-hand with Saudi Arabia on Vision 2030. A growing economic partnership, multifaceted cooperation, culture connectivity and vibrant people-to-people contacts confirm this. How will the SPC work to support the Vision 2030 while simultaneously driving India’s global plans?

A: There are several areas where India and Saudi Arabia can collaborate to help achieve the Kingdom’s Vision 2030. In fact, the Kingdom has identified India as one of the eight strategic partners for achieving Vision 2030. The Strategic Partnership Council is central to furthering this cooperation as it provides an institutional mechanism to ensure regular and continuous progress of the bilateral relationship. Under Vision 2030, the Kingdom has set ambitious targets that require extensive economic cooperation. The Kingdom can certainly benefit from India’s rising economy, not only through two-way investments, but also due to India’s skilled manpower. In this regard, Committee on Economy and Investments, under the framework of the Strategic Partnership Council, should act as a catalyst to increase economic cooperation between the two countries.

Even in the cultural domain, there are several institutional mechanisms that can be used to further cooperation. For instance, the two countries had signed an MoU on Cultural Cooperation in 2010. Additionally, under the framework of the Strategic Partnership Council, the Joint Working Group on Social and Cultural Cooperation is working to increase engagements across this sector.

Q: Post COVID the world has changed. Saudi Arabia with its hands on experience has come out of the pandemic standing tall with and emphasis on digital change and a transformation to e-governance. India on the other had to undergo a different scale of intensity to fight the pandemic. Following its experience, how has the country acted to build capacities, boost financial, digital and communication transformation. Have you, in your strategic dialogue, learnt from your G20 counterpart’s experience, and have shared the positives from yours with them?

A: Yes. The leadership of both the countries remained in constant coordination throughout the pandemic and dealt with ensuing challenges in a unified manner. India and Saudi Arabia followed through on their commercial commitments and maintained the supply chains. As many of you might remember India supplied 4.5 million doses of COVID vaccines to Saudi Arabia to support its vaccination drive.

Similarly, Saudi Arabia also sent oxygen cylinders and LMO tanks during the critical time of second wave of COVID in India. India has come out of COVID stronger in terms of capacity building and financial, digital and communication transformation. CoWIN portal and Arogya Setu app are successful examples of this transformation.

Q: You have activated and articulated an Act East policy, a SAGAR outlook, a Gulf engagement and a Central Asia initiative. In each case, whether it is leadership attention, diplomatic energies, practical projects or shared activity, the record is one of higher commitment, how does this policy fit into the Strategic Partnership with Saudi Arabia, and is there an special engagement with the Gulf nation within this policy?

A: All Indian Foreign Policy initiatives, including the ones mentioned by you, have a few common attributes; including consultative approach, respect for national sovereignty, development and demand driven, focus on capacity-building, and adjusted to local cultural norms. As part of India’s extended neighborhood, the Gulf region in general, and the Kingdom in particular, are crucial to India’s foreign policy priorities in the region.

Such cooperation is visible by increased engagements with all six GCC countries over the past few years. With Saudi Arabia in particular, defense and security cooperation has increased significantly in recent times, with the first ever bilateral naval exercise “AL MOHED AL HINDI” being held in August 2021. The two countries can certainly look to increase such cooperation to fulfill several of India’s regional initiatives, such as the SAGAR (Security and Growth for All in the Region).

Q: In the post-pandemic world India has eyed building reliable and resilient supply chains and is shaping an outline of an emerging economic outlook with a stress on FTAs. After inking trade pacts with the UAE and Australia, India is set to begin deeper engagements with the Gulf Cooperation Council (GCC) countries to finalize a free trade agreement (FTA). Will the SPC address this, and how soon will the Indo-Saudi FTA be signed?

A: As of now, we are working on India-GCC FTA with the aim of strengthening our commercial partnership with all the GCC nations, including Saudi Arabia. Both sides are closely working with each other to finalize the agreement. I am confident that once we have the India-GCC FTA in place, our bilateral trade with the region and specifically with Saudi Arabia will receive a major impetus.

Q: India’s decisions and intentions have had a major bearing on climate action and climate justice. Saudi Arabia too has rolled out the Saudi Green Initiative and the Middle East Green Initiative. With both nations embarking on a singular direction on climate, how can the two countries help each other in their quest for a greener world?

A: India has been at the forefront of the battle against climate change. In fact, India is currently the only G20 country that is moving fast towards achieving its climate goals. Similarly, Saudi Arabia too has indicated its willingness to play a leading role towards a greener world, which is indicated through the Saudi Green Initiative and the Middle East Green Initiative.

The two countries can certainly synergize their efforts by increasing cooperation in the fields of renewable energy and clean energy technologies. As the Kingdom looks to transition towards cleaner fuel, it can partner with India both bilaterally, as well as through organizations like the International Solar Alliance. In fact, our two countries also signed an MoU in the Field of Renewable Energy in October 2019, which provides another institutional mechanism to further cooperation across this sector.

Q: You have said that PM Modi has reshaped the Indian foreign policy with national interest at its core, but at the same time harmonizing with global good. Crown Prince MBS too has reshaped the Saudi foreign policy by putting national interest at the heart of the Kingdom’s policies while also acting collectively for the global good. With the direction being the same, what does both the G20 countries propose to strategically provide a boost to their bilateral ties while giving a fillip to global growth?

A: Increased India-Saudi Arabia cooperation will certainly benefit not only the region, but also the global community. Bilateral cooperation across all sectors, including political, security, defense, economic, and cultural domains has repercussions for the region. India and Saudi Arabia are collaborating to ensure security through respect for international law, national sovereignty, and territorial integrity. Such cooperation should certainly increase regional stability. India-Saudi Arabia economic cooperation is also another factor that should increase regional stability as the two major economies accelerate regional growth.

Q: India has got support from 4 out of 5 UNSC member nations for permanent seat, and will you be canvassing the Gulf and ME nations for their support in this endeavor. Also would India support Saudi Arabia’s effort in hosting Expo 2030 Riyadh, and will it direct its friends to follow suit?

A: India as the largest democracy, fifth largest economy, nuclear power, technological hub, and tradition of global engagement as a powerful case to be a permanent member of the Security Council. The Council must adapt to the evolving global conditions, not only to fulfill its objectives of maintaining international security, but also to remain relevant. There is a broad global consensus over the need to reform the Council, particularly as it doesn’t reflect the realities of our world. An expanded Council is not only in India’s favor, but also in favor of other unrepresented areas.

With regard to Indo-Saudi cooperation in the multilateral domain, our two countries collaborate closely in such forums. In fact, under the framework of the Strategic Partnership Council, the Joint Working Group on Political and Consular Cooperation deals with such cooperation in the multilateral domain. India and Saudi Arabia have many mutual concerns, and thus there are several reciprocal arrangements that our two countries have mutually agreed to meet our shared interests. With regard to the Kingdom hosting Expo 2030, since India is not a member of Bureau International des Expositions, therefore, we would not be participating in this particular process.

Q: In your book, The India Way: Strategies for an Uncertain World, you write about the decade from 2008 global financial crisis to the 2020 coronavirus pandemic having changed the world order. How do you think the rules changes in the international relations will drive the strategic component of your relations with Saudi Arabia?

A: The changing global order will have an impact on any country’s foreign policy. With the region, as well as the world, experiencing volatility due to COVID, conflicts, climate events and economic uncertainty, the Indo-Saudi partnership offers a significant factor of stability. In this context, our relations with Saudi Arabia have strengthened considerably over the past decade, which eventually culminated in the formation of the Strategic Partnership Council in October 2019.

Our bilateral relations have strengthened due to increasing synergies and shared interests, and this carries additional salience in today’s dynamic international environment. The two countries are currently collaborating across nearly all sectors, which has expanded the depth of the relationship and made it comprehensive.

A major reason for this expansion has been the evolving regional situation, for instance our defense cooperation, particularly in the naval domain has gradually strengthens in the past few years, leading to the first ever bilateral naval exercise “AL MOHED AL HINDI” in August 2021. In the economic domain as well, our bilateral trade last year stood at $42.86 billion, reflecting the growing interconnections between our two economies.

Q: The year 2021-22 commemorates 75 years of India’s independence as ‘Azadi ka Amrit Mahotsav’. This celebration also coincides with 75 years of establishment of diplomatic relations between India and Saudi Arabia, will this SPC meet offer special engagements such that the two countries would strategically benefit?

A: Indeed, this year is a milestone year for us. We have now entered the “Amrit-Kal” (Golden period), which will continue for the next 25 years to reach the centenary of our Independence and diplomatic relations with Saudi Arabia. During this period, I am hopeful of exponential growth, in our bilateral relations.

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