Saudi Crown Prince and Indian premier set to bolster bilateral ties

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Saudi Crown Prince and Indian premier set to bolster bilateral ties
Saudi Crown Prince Mohammed bin Salman.

Dubai - During the trip, counter-terrorism and energy security are expected to top the agenda for discussions.

by

Issac John

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Published: Mon 18 Feb 2019, 8:00 PM

Last updated: Tue 19 Feb 2019, 10:26 PM

Saudi Crown Prince Mohammed bin Salman's visit to India starting today is expected to be watershed in the time-tested bilateral ties and presents a monumental opportunity to expand collaboration between the two long-time partners in many vital sectors.
Expectations about the economic and investment fallout of the royal visit have skyrocketed following the $20 billion deals the Saudi Crown Prince signed in Pakistan ahead of his delegation's visit to India - the kingdom's fourth largest trade partner after China, the US and Japan.
India's bilateral trade with the kingdom is worth $28 billion. The Gulf country supplies 20 per cent of India's crude oil and the Indian diaspora in Saudi Arabia is three million, the largest expatriate group in the kingdom.
Diplomatic sources said during the trip, counter-terrorism and energy security are expected to top the agenda for discussions besides enhancement of ties across several areas, including IT, health and tourism. Political analysts said cooperation in counter-terrorism is likely to figure high on the agenda of the talks in New Delhi as the visit of the prince comes following the Pulwama terror attack.

New Delhi also expects Saudis to invest in India's National Investment and Infrastructure Fund - a platform focusing on ports, freight corridors and logistics infrastructure, including cold-storage facilities.
At their talks, both countries will seek to give a 'new structure' to their strategic partnership. The Saudi prince is expected to sign an agreement to establish the Saudi Indian Supreme Coordination Council - a body that will give fillip to the strategic partnership. The two sides are planning to sign another agreement for promoting and protecting mutual investments.
Among other MoUs the two sides are also planning to sign a pact for cooperation between the Saudi Radio and Television Corporation and Broadcasting Authority of India. The president of the board of the Saudi Commission for Tourism and National Heritage accompanying Prince Mohammed is likely to sign an MoU for cooperation in the tourism sector between SCTH and India's Ministry of Tourism.
Prince Mohammed's visit follows a high profile visit to India in 2016 by late King Abdullah, who became the first Saudi king in 51 years to do so. Over the past several decades there have been four visits to Saudi Arabia by an Indian Prime Minister: Jawaharlal Nehru, Indira Gandhi, Manmohan Singh and Narendra Modi.
According to Indian Ambassador to Saudi Arabia Ahmed Javed, the two countries would sign agreements across different sectors including energy, infrastructure, housing, tourism and information technology.
The deals would attract potential infrastructure investment and boost development in India, he said.
The visit by Prince Mohammed, who is also the Vice-President of Saudi Arabia's Council of Ministers, follows the highly successful trip of Modi to that country in April 2016, during which the two sides had agreed to further elevate their existing strategic partnership.
In the recent years, there has been a significant progress in the bilateral cooperation in the key areas of mutual interest, including energy security, trade and investment, infrastructure, defence and security.
At a meeting with Prime Minister Narendra Modi last year, Prince Mohammed said Riyadh would be finalising its initial investment in the NIIF. He also referred to future investment prospects in technology, agriculture and energy.
Ahead of the visit, the Modi cabinet approved a memorandum of understanding between India and Saudi Arabia on establishing a mechanism for investment infrastructure in India.
"The MoU will be a step forward in engaging with the institutions of Saudi Arabia to attract a potential investment into the infrastructure sector in the country," an official statement said last week.
Both nations are also expected to expand trade and cooperation and joint ventures in telecommunications, pharmaceuticals, health services, information technology, biotechnology, agriculture, construction projects, energy and financial services.
Besides holding talks with Prime Minister Modi, the Saudi prince will also meet President Ram Nath Kovind and Vice-President M Venkaiah Naidu during his two-day visit.
"Crown Prince Mohammed bin Salman's visit to India is highly anticipated and presents a historic opportunity to expand collaboration between our two friendly countries in all fields," Saudi Ambassador to India Saud Mohammad Al Sati has said.
"Saudi Arabia and India share age-old ties of friendship that are deepening with each passing day. Under Prince Mohammed's leadership, Saudi Arabia is at the cusp of path-breaking transformation, he said. "In our common pursuit for development and stability, Saudi Arabia sees India as an important strategic partner and valued friend," Sati said.
India's Ministry of External Affairs said investments, defence and security, including counter-terrorism and renewable energy, are the key issues which are likely to come up for discussions during Prince Mohammed's visit.
Recently, Saudi Aramco, in partnership with Adnoc of the UAE, entered into a $44 billion joint venture for the Ratnagiri refinery and a petrochemical project. Saudi Arabia also facilitates Hajj pilgrimage of over 1,75,000 Indians every year.
According to New Delhi sources, India is likely to ask Prince Mohammed for cheaper oil by exempting it from the extra charge levied on Asian countries by the Organisation of the Petroleum Exporting Countries.
India pays an additional $2 to $3 on each barrel of oil it imports and wants to eliminate this surcharge.
Sources said Opec gives preferential terms to the US and Europe. To counter this, India is also holding discussions with China, Japan and South Korea about creating a buyers' forum that could negotiate better prices.
 
- issacjohn@khaleejtimes.com


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