The post union budget period of India, especially the month of September has come with a bunch of power boosters for the nation. Right from the few measures undertaken at the local level by the country, be it the major relief for the corporate taxpayers or the commendable step taken in respect to exporters and home buyers; the country is gradually seizing its pace for the economic recovery. In this thread of one after other strikes, a global proposal by Saudi Arabia may create an economic utopia for India. As reported on 29 September, Sunday, the biggest exporter of oil across the globe- Saudi Arabia is planning to invest around US $100 billion in India. Mere the idea has brought so much rush in the economy as the areas projected by Saudi Arabia majorly includes petrochemicals along with mining and infrastructure among others. Saudi Arabia is the strongest pillar of the Indian energy security as India acquires a substantial share of the expensive most fuels such as LPG and crude oil. Talking about the actual shares, Saudi Arabia is a source of 32% of LPG and 17% (or more) of crude oil requirements of India.
This pronouncement is seen in relation to Saudi Arabia’s strategy
of diversification of its economy under the Vision 2030 plan. The plan also
covers developing the various public service sectors like education, health, recreation,
tourism, and infrastructure among others. The responsible ministry for Saudi
Vision 2030 plan is the Crown Prince of Saudi Arabia, Mohammed bin Salman
according to which, it will result in the trade and business expansion for both
the countries. As per the ambassador of Saudi Arabia, Dr Saud bin Mohammed Al
Sati, India is an attractive destination of investment for Saudi Arabia. And
thus, the country is looking for some long-term partnerships in the major
sectors like oil, gas, and mining with National Capital, New Delhi. The upcoming
investment will further cover West Coast refinery and petrochemical project in
Maharashtra. Considering the growth potential of the diverse sectors of India,
the investment is majorly expected to benefit the crude oil production. Al Sati
further added that Saudi Arabia’s largest oil giant Aramco has proposed the partnership
with Reliance Industries Ltd in this respect. This is somewhere reflecting the
strategic spirit of the growing energy ties between both these countries.
This is worth noting that in the mid of
September, Saudi Arabia was allegedly attacked by Iran which has already disturbed
the economic balance of the country. Adding to this, the very Saudi energy
giant, Aramco, was the target of the attack on September 14, 2019, which by now
has proposed its investment plan in India. The reported representative informed
that investing in the value chain of India from oil supply, marketing, refining
to petrochemicals and lubricants is one of the crucial aspects of the global
downstream strategy of Aramco. This major move is anticipated to act as a
magnet for the leading global investors and innovators to work with Saudi
Arabia. Moreover, this will help drive the private sector growth that is needed
to meet the goals set out in Saudi Vision 2030. As far as Indian economy is
concerned, the foreign investment is expected to create further employment
opportunities for the country thereby stimulating the local oil production and
thus, reducing the dependence on foreign countries. India has always been the
ideal most destination for several investors; however, this investment worth around
US $100 billion will definitely catalyze the local economic operation.
