I am grateful to the Council of Saudi Chambers and Industry for giving me this opportunity to interact with such a distinguished group of business leaders. I would also like to thank the business leaders from India who have travelled here today.

I have had some association with the evolution of the India-Saudi Arabia economic partnership. As the Finance Minister of India, I attended the 4th session of the India-Saudi Arabia Joint Commission in 1994. This is my first visit to Saudi Arabia as Prime Minister. A lot has changed between then and now in our bilateral relations, in our two economies and in the global environment.

The visit of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud to India in January 2006 was a defining moment in our relations. The landmark Delhi Declaration that His Majesty and I signed identified higher flows of trade and investment, better connectivity and exchange of ideas as the central pillars of our joint vision for an enhanced economic partnership.

I look forward to my dialogue later today with His Majesty to carry forward the momentum and take the entire gamut of our relations to even greater heights. I believe this is not only eminently possible, but also necessary.

Since 1990, Saudi Arabia's economy has quadrupled in size. It has undergone substantial diversification with the strengthening of the non-oil sector. The ambitious economic cities that are proposed to be set up have the potential to further transform the Saudi economy. All these developments have and will widen employment opportunities for the growing young population in Saudi Arabia, and enhance Saudi Arabia's economic weight globally.

India, too, has registered significant growth. We are in the midst of a major socio-economic transformation. Our economy has grown at an average annual rate of over nine percent in the last few years. Despite the global economic slowdown, we hope to achieve a growth rate of over 7 percent in the current financial year. We expect to get back to the growth level of about 9 percent per annum within two years. Our domestic saving rates are high, and can support investment rates of as high as 38 percent of our Gross Domestic Product. India is an economy with a huge market, and a young and expanding work force. We have a vibrant and innovative private sector.

Both countries have in place a sound institutional mechanism to facilitate trade and investment, including a Double Taxation Avoidance Agreement and Bilateral Investment Protection Agreement. Eight meetings of the Joint Commission have been held, the last having met in October 2009. We cooperate within the framework of the India-GCC Industrial Conference, and negotiations are in progress to finalise a India-Gulf Cooperation Council Free Trade Agreement.

We deeply value Saudi Arabia's role as a reliable partner in meeting our energy needs. We believe that conditions are ripe for moving beyond a traditional buyer-seller relationship to a comprehensive energy partnership. Indian companies are well equipped to participate in upstream and downstream oil and gas sector projects in Saudi Arabia. We should also establish new partnerships in the area of new and renewable energy through sharing of clean technologies and joint collaborations.

The robust growth of our economies offer immense opportunities for business communities from both sides. Our bilateral trade has reached almost 25 billion US dollars in 2008-09. Indian investments into the Kingdom have risen considerably and today stand at more than 2 billion US dollars covering over 500 joint ventures. Several major Indian companies have already established their presence in the Kingdom. Our public sector company, RITES has recently won a contract to participate in the North-South Railways project. There is however potential for doing much more.

India's needs for high quality modern infrastructure are vast. We have opened our doors to foreign investment and I invite investors and entrepreneurs from Saudi Arabia to explore investment opportunities in India.

I would specifically refer to the construction, manufacturing, pharmaceuticals, health, agriculture, energy, telecommunications, tourism and other service sectors.

We should also look at new areas of cooperation. Education and skill development are of primary importance to both our countries. India has a proven track record in the field of knowledge-based industries, which have great potential for improving the skill set of the work force. India would be happy to share her experience with Saudi Arabia in the area of human resources development. Cooperation in the areas of science and technology and space technology are other areas for future cooperation.

I would encourage greater exchanges among the Chambers, industry associations and business houses of both sides. More frequent participation in trade fairs and exhibitions will create greater awareness of each others' capabilities. I can assure you that the government will extend its full support to the expansion of business-to-business links between our two countries.

The integration of our economies with the rest of the world has created new opportunities but also brought new challenges. The global financial crisis has thrown up a broad agenda for global action and reforms. The role of emerging economies such as India and Saudi Arabia within the G-20 framework and otherwise will be crucial to the restructuring of the global economic and financial architecture.

We view our economic cooperation with Saudi Arabia in the wider context of our interactions with the entire Gulf region. This is an area with which we have deep and historical ties. The Gulf countries are our natural partners in every sense of the term. Indians are the largest expatriate community in every country of the Gulf Cooperation Council. Our businesses should work together across the region, develop cross-country linkages and leverage economies of scale.

l am confident that such interactions will bring vitality and dynamism in the cooperation between our two economies. India sees Saudi Arabia as a strategic partner for promoting peace, stability and economic development. Such a partnership will bring benefits not only to our two countries but to the region we both belong to, and to the world at large.

Thank you.

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