FIEO Delegation visits Kingdom of Saudi Arabiatext_fields
Riyadh: India and Saudi Arabia have been strategic partners since the signing of the Strategic Partnership Council (SPC) agreement during the visit of Prime Minister Narendra Modi in 2019. Under the SPC arrangement, the economic pillar headed by the Commerce Minister of India Piyush Goyal and the Energy Minister of Saudi Arabia, Prince Abdul Aziz Bin Salman, has witnessed significant progress in the last three years, and the bilateral trade between Saudi Arabia and India had reached USD 40 billion in the previous financial year FY21-22. Indian exports to Saudi Arabia also saw a steep growth to USD 8 billion in the last FY. Indian exports to the Kingdom include a diverse range of products like food products, chemicals, leather, engineering goods, textile, machinery etc.
Saudi Arabia is India's key energy partner as it exports 30% of LPG and 18% of India's crude imports. The bilateral investment sectors have also shown rapid growth in the last few years, as a result of which Saudi Arabia is now the 17th largest investor in India, with investment amounting to more than USD 3 billion. Likewise, Indian investments in Kingdom have also increased significantly and have crossed USD 2 billion.
India is a major exporter of food products to Saudi Arabia and features as an important partner in terms of ensuring food security in the Kingdom. India exports products like Rice, cereals, beverages, cardamom, spices, fruits and vegetables, seafood and meat products, milk products, processed food items etc. SALIC (PIF-owned Company) has taken a 33% stake in LT foods Limited in India. A separate joint working group under the economic pillar of SPC is working toward enhancing collaboration in the food and agriculture sector.
India, as an emerging economy, has witnessed unprecedented levels of economic expansion. India's cost-effective and labour-intensive economy and a strong manufacturing and export-oriented industrial framework make it an attractive investment destination as well. India's agricultural exports stood at US$ 47 billion in FY21-22, according to the Directorate General of Foreign trade.
Saudi Arabia is the largest market for agriculture in the GCC region, and the demand for agriculture is higher at present in the country, owing to changing consumption patterns of consumers and increasing awareness. The growing presence of superstores and hypermarkets has increased the access to high-quality agricultural products for the Saudi population.
FIEO ( Federation of Indian Export Organization), in association with the Embassy of India, Riyadh and Consulate General of India, Jeddah, mounted a Delegation of more than 25 Indian Companies from Food & Agri Sector to Saudi Arabia from 12-16 June 2022. During their visit to Saudi Arabia, the delegations were able to meet numerous Saudi business communities interested in Agro Food imports from India. The delegations were hosted by the Riyadh Chamber of Commerce on 12th June, followed by a B2B interactive session on the 13th June at VOCO Hotel in Riyadh. The delegation was also hosted by the Asharqia Chamber on 14th June, where they were able to meet with more than 60 Saudi Companies in the Eastern Region. The team would be travelling to Jeddah to have a fruitful discussion with the Saudi business community in the western region. Indian Companies in the delegation are representing the vast basket of Indian food and agri products which is also an opportunity for the Saudi business community to have a concrete discussion for sourcing during the networking meets.