This document provides information on trade between India and Saudi Arabia. It outlines that Saudi Arabia is a major exporter of petroleum and petroleum products, while India's economy has grown significantly since economic liberalization in the 1990s. The two countries have had trade relations dating back millennia and are each other's important trading partners today, with bilateral investment and agreements supporting trade in sectors like energy, construction and IT. While Saudi Arabia typically runs a trade surplus with India, officials aim to improve political and economic cooperation further.

2. INTRODUCTION
What is trade?
Trade refers to the exchange of
goods and services. It may be
internal or external.
What is International trade?
It refers to the exchange of goods
and services among different
countries.

3. Major exports:
 Petroleum oils, crude (77%) Petroleum
oils, refined (6%)
 Polymers of ethylene,in primary forms(3%)
 Petroleum gases (2%)
 Acyclic alcohols(2%)

4. Major imports:
 Cars(7%)
 Medicaments, packaged(3%)
 Iron ores and concentrates(2%)
 Automatic data processing machines(2%)
 Transmission apparatus for
radio, telephone and TV(2%)

5. Major trade partners(exports):
Asia, NES (37%)
North and Central America (8%)
Japan (7%)
China (7%)
United States (7%)

6. Major trade partners(imports):
 China(14%)
 Germany(10%)
 Japan(9%)
 Korea Republic(6%)
 United States(6%)

7. Saudi is an oil-based economy.
Strong government control over economic
activities.
18% of world’s petroleum reserves.
Largest exporter of petroleum.

8. INDIA’S ECONOMY
Major exports:
 Petroleum oils, refined (15%)
 Diamonds(11%)
 Iron ores and concentrates(4%)
 Jewellery of precious metals(3%)
 Medicaments, packaged(3%)

9. Major imports:
 Petroleum oils, crude(21%)
 Diamonds(9%)
 Coal; briquettes(5%)
 Gold(5%)
 Petroleum oils, refined(2%)

10. Major trade partners(exports):
 United States(12%)
 United Arab Emirates(11%)
 China(8%)
 Hong kong(4%)
 Singapore(4%)

11. Major trade partners(imports):
 China(12%)
 United Arab Emirates(8%)
 United States(5%)
 Australia(5%)
 Saudi Arabia(5%)

12.  Since liberalization, the value of India’s
international trade has increased;GDP
rising from 16% in 1990-91 to 47% in 2008-
010.
 By 2010, exports increased to 22.3% , while
imports increased by 7.5%.

13. HISTORY
 India and Saudi share a BILATERAL
relationship.
 Trade between the two countries dates back
to third millennium B.C.
 Arab traders held a monopoly over ‘spice
trade’ between India and Europe.
 Since its independence, India has sought to
maintain strong ties with Saudi Arabia.

14. Bilateral Investment
Progressive growth has been observed between the
countries after Liberalization policy of India in 1991.
Saudi Arabia is ranked 15th position in country-wise
FDI joint venture in India and 2nd among Arab
countries.
 Saudi Arabia has invested 422.1 million INR during
1991 to 99 and 690.71 million INR during Jan 2000 to
08
Investment is observed in diverse fields such as paper
manufacture, chemicals, computer software ..etc

15. India is the sixth biggest foreign investor in the
Kingdom with investments exceeding US $470 million
in nearly 100 joint ventures or 100 % Indian owned
counties in Saudi Arabia in sectors such as
Power, Construction, IT and many others…
Saudi Arabia invited Indian businessmen to invest in
special areas of telecommunication, mining, energy
and power, agriculture..etc

16. Trade agreements & Associations.

17. A trade agreement ( Trade Pack) is a wide ranging
tax, tariff and trade pact often includes investment
guarantees.
In order to improve trade relations between India &
Saudi Arabia on March 1, 2010 signed 5 important trade
agreements.

18. Extradition treaty
Agreement on the transfer of sentenced
persons
Agreement on Scientific co-operation
Memorandum of Understanding
(MOU) between Indian Space Research
Organization (ISRO)
MOU on co-operation in science and
technology for joint research and
development
MOU on Cultural co-operation

19. Non-Governmental and other agreements include:
 MOU for foreign office consultations
Bilateral promotion and protection investments
(BIPA)
Agreement on avoidance of double taxation

20. Trade Associations
Trade associations, also known as an industry trade
group or business association is an organization
founded and funded by businesses that operate in a
specific industry.
Some of the trade associations which are established are
between the two countries are
a) Association of Malyali Professionals in Saudi Arabia
(2004)
b) ‘‘Pleace India’’ (non-profitable, non-political
movement)

21. Exports and Imports
Saudi Arabia is the 4th largest trading partner for India.
The value of the two-way trade between the two
countries in 2011-12 exceeded US $36 billion. Saudi
Arabia is the 14th largest market in the world for Indian
exports and is the destination of more then 1.86% in the
global exports.
On the other hand Saudi Arabia is the source of 6.35% of
India’s Global imports.
For Saudi Arabia India is the 5th largest market for its
exports accounting for 7.55% of its global exports.

22. India’s imports and exports with Saudi Arabia.
0
5000
10000
15000
20000
25000
30000 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
(Apr-Sep)
India’s Imports from
Saudi Arabia
India’s Exports to Saudi Arabia

23. Major Indian Exports to Saudi
Mineral Fuels
Mineral Oils
Cereals
Nuclear reactors
Boilers
Electrical Machinery & equipment
Iron & steels

24. India’s Major Imports from Saudi
Organic Chemicals
Plastic and its articles
Inorganic chemicals
Fertilizers
Aluminum
Iron and Steel
Copper

25. Balance of Trade
What is Balance of trade??
Balance of Trade of the difference between a country’s
imports and its exports.
i.e, Exports Imports
What is Trade Deficit?
A country has a trade deficit if it imports more than its
exports. i.e, Imports ≥ Exports
What is Trade Surplus?
A country has a trade surplus if it exports more than its
imports. i.e, Exports ≥ Imports

26. -18000
-16000
-14000
-12000
-10000
-8000
-6000
-4000
-2000
0
2000
Balance of Trade
Balance of Trade

27. Balance of Payment
What is balance of Payment?
It is a record of all the transactions made between one
particular country and all other countries during the
specified period of time.

28. Current account balance in
Saudi Arabia

29. Current account balance IN
India.

30. Conclusion
The frequency of high-level official exchange must be
improved so that political understanding improves.
Both sides must show eagerness to open more areas for
co-operation.
High-Level military exchanges, joint training of trrops
& high use of training courses must be encouraged.
Both sides should refrain from taking steps that could
harm the interests of the other sides.