By-

Parth Deepakbhai Doshi (65)

Shibashish Chakraborty (90)
Shikha Chauhan (91)
Shivani Tripathi (93)
Swati Arora (107)
Tarun Kumar (109)
 Introduction to Saudi arabia
• This is an oil-based economy with strong
government controls over major economic
activities.
• Saudi Arabia possesses 25% of the world’s proven
petroleum reserves, ranks as the largest exporter
of petroleum, and plays a leading role in OPEC.
• The petroleum sector accounts for roughly 75% of
budget revenues, 45% of GDP, and 90% of export
earnings.
• Roughly five and a half million foreign workers
play an important role in the Saudi economy.
• The government is encouraging private sector
growth to lessen the Kingdom’s dependence on
oil and increase employment opportunities for the
swelling Saudi population.
 India-Saudi Trade and Business
Relations
• India is 6th largest trading partner for Saudi
Arabia

• The bilateral business ties are being steadily

expanded and further strengthened by
continuous interaction and cooperation, including
regular exchange of business delegations.

• Besides being a major trade partner, India sees

the Kingdom as an important economic partner
for investments, joint ventures, transfer of
technology projects and joint projects in third
countries.
Contd…

• The value of the two-way trade between the two

countries in 2007-2008 exceeded US$ 23.11 billion.

• Saudi Arabia is the 15th largest market in the world

for Indian exports.

• On the other hand, Saudi Arabia is the source of 5.5%

of India’s global imports.

• For Saudi Arabia, India is the 4th largest market for its
exports, accounting for 5.95% of its global exports.

• In terms of imports by Saudi Arabia, India ranks 9th

and is source of around 2.96% of Saudi Arabia’s total
imports.
 EXPORT IMPORT

Organic chemicals Mineral ores & metal scrap

Inorganic chemicals Coal
Artificial resin Iron & steel
Plastic materials Non-ferrous metals
Sulphur Pulp & waste paper
Iron pyrites

Basmati/non-basmati rice Chemicals

Tea Plastic & linoleum products
Manmade yarn Electrical power equipments
Fabrics Air compressors
Cotton yarn Passenger cars
Primary & semi-finished Industrial machinery
iron and steel Sanitary casting
Sea food
 Indo-Saudi Trade (million US $)

Indian export
*Imports Exports to
Year (April- increase over
from Saudi Saudi Total trade
March) previous year
Arabia Arabia
(%)
2000-2001 621.12 822.94 1444.06 10.83
2001-2002 463.99 826.43 1290.42 0.42
2002-2003 504.72 940.74 1445.47 13.83
2003-2004 737.77 1,123.31 1861.08 19.41
2004-2005 1301.15 1412.06 2713.21 25.71
2005-2006 1632.34 1809.77 3442.11 28.17
2006-2007 13,383.90 2,588.18 15,972.08 43.01
2007-2008 19,410.63 3,708.30 23,118.93 43.39

 *Note: Imports figures for 2000-2001 and later do not include import o
Petroleum Products
 
TRADE BETWEEN SAUDI ARABIA
AND INDIA

NOTE: - *Note: Imports figures for 2000-2001 and later do not

include import of Petroleum Products.
 Saudi Arabia import/export
regulations
• Most of the basic consumer products are duty
free, e.g., rice, tea.

• Customs duties of 20% are imposed on some

imported commodities for the purpose of
protecting the national infant industries. (e.g.,
aluminium, sugar)

• Import duty on other items is 12% ad valorem on

the c.i.f. (cost, insurance, and freight) value.
 ENERGY HUNGRY INDIA

•India imports 70% of its energy needs n is the

6th largest importer of energy requirements.

•By 2010, India will replace South Korea n will

become the 4th largest consumer of energy after
US, China n Japan.

•Saudi Arabia meets about 26% of India’s oil

requirements.
 Contd…

•Saudi oil major AMERCO Group is in talk with the two

major Indian oil companies for the possible investments.

•Both the countries will cooperate to secure funding and

finding manpower for the International Energy Forum
Secretariat in Riyadh to study the Asian Petroleum and
petrol products.

•India’s gas requirements are expected to increase from

the current 170 million cubic metes par day (mcmpd)
and projected to increase to 400 mcmpd.
 INVESTMENT
• India has emerged as a sixth biggest foreign
investor in the kingdom with exceeding
investments of US $ 470 million.
• Major sectors are Management and Consultancy
services, Construction projects, Power,
Telecommunications, Information Technology &
Pharmaceuticals.
• SAGIA has awarded 190 licenses to Indian
companies for J.V. or 100% Indian owned
companies which included 39 projects in
industries, 54 in services and 93 in agriculture in
Saudi Arabia.
 INDIA’S IMPORTANCE IN
GULF

• Emphasis on energy security

• Necessity, ambition and opportunity

• Serve as a base from where its interests can be pursued

• Need to confront terrorism and extremism

• Source of investment
 CONCLUSION

• A kick start process is needed

• The road ahead should seek to continuously diversify relations, with

both parties acquiring fresh, systematic and strategic dimensions to
consolidate their positions.

• While Saudi Arabia and the other Gulf Cooperation Council (GCC)
countries are going through important changes and transformations, the
process of understanding and integration needs to intensify beyond the
traditional issues.