The government of India said in a statement on Monday that it had discussed the possibility of establishing trade with Saudi Arabia in the local currency, the rupee and the rial, as part of efforts to strengthen economic ties between the two countries.
India, the third largest economy in Asia, has established a mechanism to settle international trade remittances in Indian rupees, focusing on exports to support global trade and responding to the growing interest in using the rupee for commercial purposes.
“We discussed ways to attract more investment and diversify bilateral trade to strengthen economic ties between India and Saudi Arabia,” Indian Commerce Minister Piyush Goyal said on Twitter after meeting his Saudi counterpart Majid Abdullah Al. -Qasab.
During his two-day visit to Saudi Arabia to attend the India-Saudi Strategic Partnership Council meeting, Goyal also met with Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud.
The statement said the two countries discussed the possibility of activating the rupee and rial trade mechanism, diversifying and expanding the scope of trade, removing trade barriers, accelerating the pace of licensing and marketing of Indian pharmaceuticals in Saudi Arabia. Arabic.
India’s trade balance with Saudi Arabia is skewed towards the kingdom as it is India’s top oil supplier, the third largest importer and consumer of crude oil in the world. India’s imports from Saudi Arabia from April to July in the first four months of the current fiscal year ended March 31, 2023 increased 93% to US$15.5 billion, while exports increased 22% to US$3. 5 billion. Data from the Ministry of Commerce. India.
Saudi Crown Prince Mohammed bin Salman announced during his visit to India in February 2019 that the kingdom will invest $100 billion in India. India’s statement said the governments of the two countries reiterated their joint cooperation on joint projects, including the development of a refinery in the West Indies, investments in liquefied natural gas infrastructure and strategic oil storage facilities in India.
Saudi oil giant Aramco, Abu Dhabi National Oil Company (ADNOC) and Indian refiners are collaborating on a project to build a 1.2 million barrels a day refinery off India’s west coast.