The decision to form the joint working group was taken during the meeting held between the Indian delegation, led by Minister of Overseas Indian Affairs Vayalar Ravi, and Saudi Arabia's Minister of Labour Adel Fakieh.
The two sides agreed that the first meeting of this joint group will be held on May 1, a statement released by the Indian embassy in Riyadh said.
The visit is aimed at exchanging views with the Saudi leadership on the welfare of the Indian community in the context of its Nitaqat programme, the statement said.
"We had met the Indian community workers before my meeting with the Saudi authorities. We will be meeting the community again here today and in Riyadh tomorrow. The delegation understood the issues and took it up with the Saudi leadership appropriately.
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"The issues include implementation of Nitaqat programme and also regularising the status of overstaying workers and their return to India," the statement quoted the Minister as saying.
Minister of State for External Affairs E Ahamed and Advisor to Prime Minister T K A Nair were also part of the delegation.
The 'Nitaqat' law makes it mandatory for local companies to hire one Saudi national for every 10 migrant workers. There has been widespread perception that the new policy will lead to denial of job opportunities for a large number of Indians working there.