Indian Economy News

India aspires to grow at an unprecedented scale in Amrit Kaal; Union Minister of Commerce & Industry, Mr. Piyush Goyal

During an interaction with Saudi Arabia's Minister of Investment, Mr. Khalid A. Al-Falih, the Union Minister of Commerce and Industry, Food and Public Distribution and Textiles, Mr. Piyush Goyal stated that India intends to grow at an unparalleled scale in Amrit Kaal, the year 2047.

He emphasised the importance of the G20 Summit that was held in New Delhi in 2023 and appreciated the organization of Startup20 under India's G20 Presidency.

He stated that both countries are the two fastest growing economies in the world today, adding that in the World Bank ranking of Ease of Doing Business, Saudi Arabia is ranked 62nd and India is ranked 63rd.

Mr. Goyal also discussed how commerce between the two countries could be doubled, which currently stands at roughly US$ 52 billion, and might be increased to US$ 200 billion.

In this regard, the Union Minister urged Saudi investors to visit Gujarat International Finance-Tech City and then bring investment. He stated that investors would enjoy the fact that India's regulatory framework has been streamlined. Furthermore, there is only one regulator for all regulations. In addition, India has implemented tax exemptions and made it simple to transfer money into and out of the GIFT City.

Mr. Goyal proposed that the Federation of Indian Chambers of Commerce and Industry (FICCI), in collaboration with the Government of India and Invest India, establish an Investment and Trade Promotion Office in Riyadh, Saudi Arabia. He emphasised that GoI officials, as well as FICCI representatives, will encourage startups. Mr. Goyal also discussed the possibilities whereby India might offer Saudi Arabia food security while Saudi Arabia could offer India energy, oil, and fertilisers, focusing on balanced trade.

The Union Minister also discussed NEOM City, stating that the Saudi Arabian government is building it at a cost of US$ 0.5 trillion and that the idea of having 100% renewable energy throughout the entire city was created in a way to be very user-friendly by taking advantage of the vast landmass coastline.

Mr. Goyal noted that India might be useful in areas like designing, construction, manning, and establishing business surroundings. "I think that's an area where India could contribute significantly," he remarked. He cited a recent report on the returns that investors have received from investment firms. He said that a survey of the top five companies listed on the stock exchange showed that Indian companies have provided a 20% CAGR return on investment over a 20-year period.

Thus, the Union Minister stated that it is necessary to boost Saudi investment. He stated that FDI from Saudi Arabia was approximately US$ 4 billion last year, up from US$ 2.8 billion during the COVID period.

He stated that Saudi Arabia's investments in India's processing industry had the potential to be a significant driver of agricultural and food security. Mr. Goyal continued by saying that the pharmaceutical industry has enormous potential. He asserted that the pharmaceutical sectors would benefit from improved communication between Saudi Arabia's and India's regulatory bodies. He also stated that residents of Saudi Arabia should have greater access to Indian pharmaceuticals, which will encourage Indian pharmaceutical businesses to invest in Saudi Arabia.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.