India, Saudi Arabia deepen tech ties to boost trade

Homepage > News > Business > India, Saudi Arabia deepen tech ties to boost trade India, the world’s fastest-growing major economy, has engaged with Saudi Arabia in sectors including technology, fintech, digital infrastructure, and telecommunications to strengthen the bilateral relationship between the two nations. Indian Prime Minister Narendra Modi was on a two-day State visit to the Kingdom of Saudi at the invitation of Crown Prince and Prime Minister, His Royal Highness Prince Mohammed bin Salman. During the visit, India and Saudi Arabia reaffirmed their commitment to deepen collaboration in technology, with particular emphasis on advancing partnerships in cutting-edge areas such as artificial intelligence (AI), cybersecurity, and semiconductor innovation. Recognizing the growing relevance of effective digital governance, both nations agreed to investigate potential avenues for joint efforts in shaping policies and frameworks within this sphere. Among the agreements, both nations signed a Memorandum of Understanding (MoU) between the Saudi Space Agency and the Department of Space of India, for cooperation in “space activities for peaceful purposes.” This MoU focuses on space cooperation and is expected to open up new opportunities for collaboration in various aspects of space exploration and technology. These include joint work on launch vehicle development, spacecraft operations, satellite ground systems, and practical applications of space-based technologies. The MoU also envisions partnerships in scientific research, academic exchange programs, and the promotion of space-related entrepreneurship. “India deeply values its long and historic ties with Saudi Arabia that have acquired strategic depth and momentum in recent years. Together, we have developed a mutually beneficial and substantive partnership including in the domains of defence, trade, investment, energy and people to people ties. We have shared interest and commitment to promote regional peace, prosperity, security and stability,” Modi said in a statement. The two countries also welcomed the recent signing of an MoU between India’s Telecom Regulatory Authority and Saudi Arabia’s Communications, Space and Technology Commission. This agreement is seen as a significant step forward in strengthening bilateral cooperation across regulatory and digital infrastructure domains. India has emerged as the second-largest trading partner for Saudi Arabia, while Saudi Arabia ranked as India’s fifth-largest trading partner during the 2023–2024. During Modi’s visit, both nations emphasized the need to further expand and diversify the scope of their economic engagement. To this end, they agreed on the significance of encouraging more frequent exchanges of business and trade delegations, as well as organizing trade fairs and investment forums to strengthen commercial ties. Additionally, both leaders reaffirmed their commitment to advancing discussions on the proposed Free Trade Agreement between India and the Gulf Cooperation Council (GCC), recognizing its potential to enhance regional economic integration and mutual prosperity. “This will be my third visit to Saudi Arabia over the past decade and a first one to the historic city of Jeddah. I look forward to participating in the second meeting of the Strategic Partnership Council and build upon the highly successful State visit of my brother His Royal Highness Prince Mohammed bin Salman to India in 2023,” Modi added. The two leaders also co-chaired the second meeting of the India-Saudi Arabia Strategic Partnership Council (SPC), and reviewed the progress of the Council since their last meeting in September 2023. The Co-Chairs of the Council expanded the Strategic Partnership Council to four Ministerial Committees, reflecting the deepening of the partnership. The four committees under the India-Saudi Arabia SPC shall now work as Economy, Energy, Investment and Technology Committee; Political, Consular and Security Cooperation Committee; Defence Cooperation Committee; and Tourism and Cultural Cooperation Committee. At the end of the meeting, the two leaders signed the Minutes of the Second Meeting of the India-Saudi Arabia Strategic Partnership Council. “I am also eager to connect with the vibrant Indian community in Saudi Arabia that continues to serve as the living bridge between our nations and making immense contribution to strengthening the cultural and human ties,” Modi added. About 2.7 million Indian nationals reside in the Kingdom, the Prime Minister’s Office said in a statement. Building on the commitment of Saudi Arabia to invest $100 billion in India in multiple areas—including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health—the joint High-Level Task Force on Investment came to an understanding in several sectors to rapidly promote such investment flows. Both nations agreed to collaborate on establishing two refineries in India. The two leaders highlighted the vital role of collaboration in advancing green and clean hydrogen initiatives. This includes efforts to boost demand, innovate in hydrogen transportation and storage technologies, and share knowledge and expertise to adopt global best practices. Both countries also recognized the importance of strengthening supply chains and launching joint energy-related projects. They stressed the need to foster partnerships between companies, promote energy efficiency, and implement measures to optimize energy use across key sectors such as buildings, industry, and transportation. Additionally, they agreed on the importance of raising public awareness about energy conservation and its broader benefits. Regarding climate change, India and Saudi Arabia reiterated their commitment to the principles outlined in the United Nations Framework Convention on Climate Change and the Paris Agreement. They emphasized the need for climate strategies that prioritize emission reductions, regardless of their source, as a more effective approach to tackling global warming. Both countries also underlined the value of collaborative efforts in advancing the circular carbon economy. They advocated for adopting policies that leverage this model as a practical solution for managing carbon emissions and achieving long-term climate goals. Recognizing the ongoing collaboration in the field of security, India and Saudi Arabia underscored its crucial role in enhancing regional and global stability. Both nations affirmed the importance of further deepening this partnership, particularly in key areas such as cybersecurity, maritime and border security, and the joint fight against transnational crime, narcotics, and drug trafficking. India and Saudi Arabia praised the increasing cooperation in education and science, recognizing its key role in driving innovation, building skills, and supporting sustainable development. Saudi Arabia welcomed the idea of top Indian universities setting up campuses in the Kingdom. Both countries also emphasized the importance of working together in areas related to labor and human resources and exploring new opportunities for collaboration. Both countries praised their ongoing collaboration under the Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (DSSI), which G20 leaders backed during the Riyadh Summit in 2020. They also highlighted the importance of improving the implementation of this framework, as it serves as the most effective way to coordinate efforts between official and private creditors in addressing the debt issues of eligible countries. India and Saudi Arabia emphasized the need to strengthen their cooperation and coordination in global organizations and forums such as the G20, the International Monetary Fund (IMF), and the World Bank. They agreed that working together on these platforms is essential to tackling global economic challenges. 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