New Delhi: India and Saudi Arabia have reaffirmed their commitment to finalizing the Bilateral Investment Treaty (BIT) at the earliest, aiming to boost two-way foreign direct investment (FDI) and strengthen economic cooperation. This commitment was emphasized during a bilateral meeting between India's Finance Minister Nirmala Sitharaman and Saudi Arabia's Minister of Investment Khalid Al-Falih in New Delhi on Wednesday.
Both leaders underscored the importance of swiftly concluding the BIT negotiations to unlock robust two-way FDI and deepen mutual cooperation. Sitharaman noted that the early conclusion of the BIT would not only boost two-way FDI but also open new avenues for collaboration across multiple sectors. Al-Falih echoed this sentiment, affirming Saudi Arabia's dedication to working closely with India to finalize the treaty as soon as possible. The aim is to conclude the agreement by the first quarter of 2026.
The discussions also explored opportunities to expand cooperation in sectors such as renewable energy, infrastructure, and technology, building upon the momentum of recent high-level engagements, including Prime Minister Narendra Modi's state visit to Saudi Arabia earlier this year.
India sees Saudi Arabia as a key strategic partner, and the BIT is viewed as a crucial step in strengthening economic ties between the two nations. India is the second-largest trading partner of Saudi Arabia, while the Kingdom ranks as India's fifth-largest. In fiscal year 2024-25, bilateral trade stood at USD 41.88 billion, with Indian exports at USD 11.76 billion and imports at USD 30.12 billion. In 2023-2024, the trade between the two countries was at USD 42.98 billion. Indian exports accounted for USD 11.56 billion, while imports from Saudi Arabia were USD 31.42 billion.
The negotiations for the India-Saudi Arabia BIT are part of a broader diplomatic effort by India to negotiate BITs with strategic partners, including the UK, Qatar, and the European Union. These efforts aim to enhance the ease of doing business and attract sustained foreign investment.
The High-Level Task Force (HLTF), established in 2024, has played a pivotal role in enhancing cooperation in areas such as taxation, infrastructure, petrochemicals, digital infrastructure, and healthcare. Both countries lauded the HLTF's role and acknowledged understandings on collaborative projects, including plans to establish two refineries. India has also praised the launch of an India Desk at the Public Investment Fund (PIF), which is intended to facilitate Saudi investments in India.
Both sides have expressed their support for the India-Middle East-Europe Economic Corridor and have committed to enhancing connectivity through infrastructure, port linkages, and energy interconnectivity. They also agreed to deepen coordination at international forums such as the G20, IMF, and World Bank.
