INDIA - SAUDI ARABIA TRADE RELATIONS

P R E S E N T E D B Y :
K A M A L D E E P S . S A N D H U
L O V E D E E P S . S I D H U
P O O J A K H U L L A R
P R A B H J O T K A U R
P U N N E T K A U R

INTRODUCTION
Background
Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines
in Mecca and Medina.
Geography
Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen.
Climate
harsh, dry desert with great temperature extremes.
Natural Resources
petroleum, natural gas, iron ore, gold, copper.
Population
26,131,703
country comparison to the
world: 46
Population growth rate:
1.536% (2011 est.)
Birth rate
19.34 births/1,000
population (2011 est.)
Death rate
3.33 deaths/1,000
population (July 2011 est.)
Religions
Muslim 100%
Languages
Arabic (official)
PEOPLE
OVERVIEW
Saudi Arabia has an oil-based economy with strong government
controls over major economic activities.
It possesses about 20% 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 45% of GDP.
Saudi Arabia is encouraging the growth of the private sector in order
to diversify its economy and to employ more Saudi nationals.
GDP (purchasing power
parity)
$622.5 billion (2010 est.)
country comparison to the
world: 23
note: data are in 2010 US
dollars
GDP (official exchange
rate)
$434.4 billion (2010 est.)
GDP - real growth rate
3.8% (2010 est.)
country comparison to the
world: 95
Inflation rate (consumer
prices)
5.7% (2010 est.)
country comparison to the
world: 152
CONT
Exports
$235.3 billion (2010 est.)
country comparison to the
world: 19
Exports commodities
petroleum and petroleum
products 90%
Exports partners
Japan 15.33%, South Korea
12.71%, US 12.2%, China
10.38%, India 7.12%, Taiwan
4.54%, Singapore 4.25%
(2009)
Imports
$99.17 billion (2010 est.)
country comparison to the world:
32
Imports commodities
machinery and equipment,
foodstuffs, chemicals, motor
vehicles, textiles
Imports partners
US 12.32%, China 12.06%,
Germany 7.67%, Japan 6.15%,
South Korea 5.32%, India 4.99%,
UK 4.72%, France 4.05% (2009)
CONT
INDIAS VISIT TO SAUDI ARAB(2010)
Indian Prime Minister Manmohan Singh undertook a three-day visit
to Saudi Arabia beginning 27 February 2010, accompanied by his
wife Gursharan Kaur, Health Minister Ghulam Nabi Azad,
Commerce and Industry Minister Anand Sharma, Petroleum
Minister Murli Deora and Minister of State for External
Affairs Shashi Tharoor.
Indian Prime Minister Manmohan signed bilateral agreements and
issue a Riyadh Declaration for deepening their relationship.



1. The treaty was signed to further enhance the existing security
cooperation between the two countries.
2. 2nd agreement signed by the two countries was on transfer of
sentenced prisoners to their own country.
3. The third agreement was on cultural cooperation between the two
ministries of culture.
4. The fourth memorandum of understanding was on cooperation on
peaceful use of outer space. It was signed between India's Department
of Science and Technology (DST) and Saudi Arabia's King Abdulaziz
City for Science and Technology (KACST).
5. A pact was also signed between the Gulf Bureau of Research and
DFL, and another between India's Centre for Development of
Advanced Computing (C-DAC) and Saudi Arabia's King Saud
University.
6. Even in the energy sector, the Indian Prime Minister proposed a
strategic partnership between the two countries.
India is 4th largest trading partner for Saudi Arabia.
The value of the two-way trade between the two
countries in 2003-2004 exceeded US$ 6.63 billion.
Saudi Arabia is the 15th largest market in the world for
Indian exports and is destination of more than 1.76% of
Indias global exports.
Saudi Arabia is the source of 5.5% of Indias global
imports. For Saudi Arabia, India is the 4th largest market
for its exports, accounting for 5.95% of its global exports

INDO-SAUDI TRADE (IN MILLION US $)
INDIAS MAJOR EXPORTS
Basmati/non-basmati rice
Manmade yarn, fabrics, made-ups, cotton
yarn,
Primary and semi-finished iron and steel,
Chemicals, plastic & linoleum products,
machinery and instruments.

INDIAS MAJOR IMPORTS
Petroleum and petrochemical products.
Saudi Arabia is the largest supplier of crude
oil to India. It provides around a quarter of
Indias crude exports.
Saudi Arabia meets around 26% of Indias
crude requirements annually.

INDIAS INVESTMENT IN SAUDI:
According to Saudi Arabian General Investment Authority , during
last two years Saudi has issued new 82 licenses to Indian
companies for joint ventures or 100% owned entities, which are
expected to bring total investment of US $ 467.18 million in Saudi
Arabia.
These licenses are for projects in diverse sectors such as
management and consultancy services, construction projects,
telecommunications, information technology,
pharmaceuticals,etc.
several Indian companies have established collaborations with
Saudi companies and working in the Kingdom in the areas of
designing, consultancy, financial services and software
development.

SAUDI INVESTMENT IN INDIA
Saudi Arabia is the 22nd biggest investor in India with
investments during 1991- 2004 amounting to US $ 228.8
million.
There are 49 Indo-Saudi joint ventures or Saudi owned
companies in India, in diverse fields such as
paper manufacture chemicals
computer software
granite processing
industrial products and machinery, cement.

As the trade relations between India and Saudi
Arabia is already in its bloom, there is an enormous
potential for a multi dimensional trade relation, says
Anand Sharma, the Commerce and Industry
minister in his meeting with Abdullah bin Ahmed
Zainal Alireza, his Saudi Arabian counterpart on
25th November 2010.
Both of them agreed for more cooperation in the
field of investment and trade services for
stimulating the businesses in both of the countries.
India is also planning a joint venture with Saudi to
establish gas based fertilizer plants there
Saudis FDI from August 2000 to 2009 August was around
$31.59 million. The major areas of Foreign Direct Investment
in Saudi Arabia are electrical equipment's
telecommunications, automobiles, software, hardware and
food processing industries.
In exports, trade worth $1,809.77 million was present in 2005-
2006 and in 2009-2010 it became $3,907.00 million. The
imports marked an increase of $15,465.23 million in the year
2009-2010. The main export items are rice, metals and
machinery equipment's. The major items to import include
petroleum, artificial resin and plastic.
The India and Saudi Arabia trade in total was $3,442.11
million in 2005-2006. In 2009-2010 it became $21,004.57
million