India and Saudi Arabia in talks over ports-rail project and local currency trade

Exciting news for India as plans to connect the country by railroad through a multinational Middle East-South Asia rail and ports corridor were unveiled during the weekend’s G20 summit, according to an official from the Indian foreign ministry.

A groundbreaking multinational agreement involving the United States, Saudi Arabia, India, the European Union, and the United Arab Emirates is set to create vital connections between the Middle East and South Asia. Many see this deal as a strategic response to China’s expansive Belt and Road Initiative.

Saudi Crown Prince Mohammed bin Salman’s recent visit to New Delhi sparked discussions between India and Saudi Arabia about the potential for trading in local currencies and fast-tracking negotiations for a free trade agreement with the Gulf Cooperation Council, of which Saudi Arabia is a key member.

Ausaf Sayeed, a secretary in the Foreign Ministry, the two countries signed eight agreements on Monday, including a pact to upgrade their hydrocarbon energy partnership to a comprehensive energy partnership for renewable, petroleum and strategic reserves.

Saudi Arabia is been among the top exporters of petroleum to India.

They also agreed to create a joint task force for $100 billion in Saudi investment, half of which is earmarked for a delayed refinery project along India’s western coast, Sayeed said.

Talking about the interconnectivity between India and the Gulf countries, Sayeed said that it will include ports, railways, better roads and also power, gas grids and optical fiber network.

During their talks earlier in the day the Indian leader and the Saudi crown prince also discussed cooperation in space, semiconductors and collaboration in defence manufacturing as well.

(Reuters)