final rbp2 presentation

8/14/2019 Final Rbp2 Presentation

http://slidepdf.com/reader/full/final-rbp2-presentation 1/14

By-

Parth Deepakbhai Doshi (65)

Shibashish Chakraborty (90)

Shikha Chauhan (91)

Shivani Tripathi (93)

Swati Arora (107)Tarun Kumar (109)



Introduction to Saudi arabiaIntroduction to Saudi arabia

• This is an oil-based economy with stronggovernment controls over major economicactivities.

• Saudi Arabia possesses 25% of the world’s provenpetroleum reserves, ranks as the largest exporterof petroleum, and plays a leading role in OPEC.

• The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of exportearnings.

• Roughly five and a half million foreign workersplay an important role in the Saudi economy.

• The government is encouraging private sectorgrowth to lessen the Kingdom’s dependence onoil and increase employment opportunities for theswelling Saudi population.



India-Saudi Trade and BusinessIndia-Saudi Trade and Business

RelationsRelations

• India is 6th largest trading partner for SaudiArabia

• The bilateral business ties are being steadilyexpanded and further strengthened bycontinuous interaction and cooperation, includingregular exchange of business delegations.

• Besides being a major trade partner, India seesthe Kingdom as an important economic partnerfor investments, joint ventures, transfer of technology projects and joint projects in third

countries.



Contd…

• The value of the two-way trade between the twocountries in 2007-2008 exceeded US$ 23.11 billion.

• Saudi Arabia is the 15th largest market in the world

for Indian exports.

• On the other hand, Saudi Arabia is the source of 5.5%of India’s global imports.

• For Saudi Arabia, India is the 4th largest market for its

exports, accounting for 5.95% of its global exports. • In terms of imports by Saudi Arabia, India ranks 9th

and is source of around 2.96% of Saudi Arabia’s totalimports.



EXPORT IMPORT

Organic chemicalsInorganic chemicals

Artificial resinPlastic materials

SulphurIron pyrites

Mineral ores & metal scrapCoal

Iron & steelNon-ferrous metals

Pulp & waste paper

Basmati/non-basmati rice Tea

Manmade yarnFabrics

Cotton yarnPrimary & semi-finished

iron and steel

Sea food

ChemicalsPlastic & linoleum products

Electrical power equipmentsAir compressorsPassenger cars

Industrial machinerySanitary casting



Pulp & waste paper

Organic chemicalsInorganic chemicals

Artificial resinPlastic materials

SulphurIron pyrites



Pulp & waste paper



Year (April-

March)

*Imports

from SaudiArabia

Exports to

SaudiArabia

Total trade

Indian export

increase over

previous year

(%)

2000-2001 621.12 822.94 1444.06 10.83

2001-2002 463.99 826.43 1290.42 0.42

2002-2003 504.72 940.74 1445.47 13.832003-2004 737.77 1,123.31 1861.08 19.41

2004-2005 1301.15 1412.06 2713.21 25.71

2005-2006 1632.34 1809.77 3442.11 28.17

2006-2007 13,383.90 2,588.18 15,972.08 43.01

2007-2008 19,410.63 3,708.30 23,118.93 43.39

*Note: Imports figures for 2000-2001 and later do not include import oPetroleum Products

Indo-Saudi Trade (million US $)



TRADE BETWEEN SAUDI ARABIA TRADE BETWEEN SAUDI ARABIA

AND INDIAAND INDIA

NOTE: - *Note: Imports figures for 2000-2001 and later do notinclude import of Petroleum Products.



Saudi Arabia import/exportregulations

• Most of the basic consumer products are dutyfree, e.g., rice, tea.

• Customs duties of 20% are imposed on someimported commodities for the purpose of protecting the national infant industries. (e.g.,aluminium, sugar)

• Import duty on other items is 12% ad valorem onthe c.i.f. (cost, insurance, and freight) value.



ENERGY HUNGRY INDIAENERGY HUNGRY INDIA

•India imports 70% of its energy needs n is the6th largest importer of energy requirements.

•By 2010, India will replace South Korea n willbecome the 4th largest consumer of energy afterUS, China n Japan.

•Saudi Arabia meets about 26% of India’s oilrequirements.



Contd…

•Saudi oil major AMERCO Group is in talk with the twomajor Indian oil companies for the possible investments.

•Both the countries will cooperate to secure funding andfinding manpower for the International Energy Forum

Secretariat in Riyadh to study the Asian Petroleum andpetrol products.

•India’s gas requirements are expected to increase from

the current 170 million cubic metes par day (mcmpd)and projected to increase to 400 mcmpd.



INVESTMENT

• India has emerged as a sixth biggest foreigninvestor in the kingdom with exceedinginvestments of US $ 470 million.

• Major sectors are Management and Consultancyservices, Construction projects, Power,

Telecommunications, Information Technology &Pharmaceuticals.

• SAGIA has awarded 190 licenses to Indian

companies for J.V. or 100% Indian ownedcompanies which included 39 projects inindustries, 54 in services and 93 in agriculture inSaudi Arabia.



INDIA’S IMPORTANCE ININDIA’S IMPORTANCE IN

GULFGULF

• Emphasis on energy security

• Necessity, ambition and opportunity

• Serve as a base from where its interests can be pursued

• Need to confront terrorism and extremism

• Source of investment



CONCLUSIONCONCLUSION

• A kick start process is needed

• The road ahead should seek to continuously diversify relations, with

both parties acquiring fresh, systematic and strategic dimensions toconsolidate their positions.

• While Saudi Arabia and the other Gulf Cooperation Council (GCC)countries are going through important changes and transformations, the

process of understanding and integration needs to intensify beyond thetraditional issues.

final rbp2 presentation

Documents