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India and Saudi Arabia's Chemical Pact: Boosting $4.5 Billion Trade Frontier

India and Saudi Arabia have initiated a strategic partnership to boost cooperation in the chemicals and petrochemicals sector. The bilateral meeting between top officials highlighted complementary strengths in petrochemicals and speciality chemicals. Both countries aim to enhance trade, explore joint investments, and develop research collaborations. This agreement underscores the growing economic ties between India and Saudi Arabia, positioning them as key trade partners.

Key Points: India Saudi Arabia Chemicals Sector Bilateral Trade Boost

  • Bilateral trade reaches $41.88 billion with $4.5 billion in chemicals sector
  • Complementary strengths in petrochemicals and speciality chemicals
  • Discuss investments in Petroleum, Chemical and Petrochemical Investment Regions
  • Collaborative R&D and skill development initiatives
2 min read

India, Saudi Arabia bolster cooperation in chemicals and petrochemicals sector

India and Saudi Arabia enhance chemicals, petrochemicals cooperation, targeting strategic investments and collaborative growth in bilateral trade.

"Both sides reaffirmed their commitment to building a sustainable and mutually beneficial partnership - Ministry of Chemicals and Fertilisers"

New Delhi, Oct 15

India and Saudi Arabia have decided to enhance bilateral cooperation in the chemicals and petrochemicals sector, promoting investments and exploring new areas of collaboration, an official statement said on Wednesday.

Bilateral trade between the two countries reached $41.88 billion in 2024-25, with chemicals and petrochemicals contributing 10 per cent, which is nearly $4.5 billion.

A bilateral meeting was held between Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilisers and Ministry of Industry and Minerals, Kingdom of Saudi Arabia.

The Indian side was led by Nivedita Shukla Verma, Secretary Department of Chemicals and Petrochemicals. The Saudi delegation was led by Khalil bin Ibrahim bin Salamah, Vice Minister of Industry and Minerals.

According to the ministry, both sides acknowledged the complementarities in the chemicals and petrochemicals sector of the two countries with petrochemicals as the strength of Saudi Arabia and India's strength in speciality chemicals.

It was agreed to have enhanced cooperation for harnessing the synergy between the two sides.

Both sides also discussed the opportunities for increasing the collaboration across the value chain of chemicals and petrochemicals, including investments in Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) of India and potential partnerships between major companies of both countries.

"It was also agreed to collaborate in the field of Research and Development and skill development in the sector. Both sides reaffirmed their commitment to building a sustainable and mutually beneficial partnership in the Chemicals and Petrochemicals sector, further strengthening the strategic and economic ties between India and Saudi Arabia," said the ministry.

Saudi Arabia is India's fourth largest trade partner, and India is Saudi Arabia's second largest trade partner.

Earlier, India and Saudi Arabia decided to strengthen bilateral cooperation in the textile sector, an official statement said.

- IANS

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Reader Comments

P
Priya S
$4.5 billion from chemicals alone is impressive! Hope this partnership creates more jobs in India and reduces our import dependency. The R&D collaboration could be a game-changer.
M
Michael C
While this sounds promising, I hope the government ensures environmental safeguards. Petrochemical industries can be polluting if not regulated properly. Sustainable development should be the priority.
A
Aditya G
Great strategic move! Saudi investment in PCPIRs will boost our manufacturing capabilities. This partnership shows how India is becoming a global manufacturing hub. Jai Hind!
S
Shreya B
Skill development mentioned in the article is crucial. Hope this creates opportunities for chemical engineering graduates and technicians. More such international collaborations needed!
K
Karthik V
After textiles and now chemicals, India-Saudi relations are really strengthening. This is good for our economy and regional stability. Both countries benefit equally from this partnership.

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