India and Saudi Arabia today agreed to broadbase their ties as a high-level delegation including the kingdom's deputy prime minister will visit New Delhi next month to deepen relations, especially in defence.
Finance Minister P Chidambaram today held discussions with his Saudi counterpart Tawfiq Al-Rabiah at a meeting of the joint commission of the two countries and touched potential areas of cooperation in several sectors.
Later, addressing Saudi and Indian businessmen at a meeting of the Council of Saudi Chambers, Chidambaram said that Crown Prince Salman Bin Abdulaziz, deputy prime minister and minister of defence, will be accompanied by a large contingent of businessmen during his visit.
Crown Prince Salman is expected to discuss defence cooperation with Indian officials. The two countries are working to formalise a defence cooperation agreement, sources said.
Referring to his talks with Crown Prince Salman, Chidambaram said both agreed that the business community of the two countries could play major roles to further enhance trade and commerce.
The Crown Prince's visit will be a follow-up of the visit of King Abdullah in 2006, which was reciprocated by Prime Minister Manmohan Singh in 2010.
Chidambaram said India and Saudi Arabia have been able to make significant progress in their relationship in the last few years. "We have identified several sectors for cooperation and dealt with some of the constraints successfully, paving the way for closer cooperation," he said.
The Finance Minister asked the private sector of the two countries to identify areas to diversify economic interaction. "On the investment side, the potential for investment in India by Saudi side is huge," he said.
The bilateral investment protection treaty and avoidance of double taxation treaty endorsed by the two countries would further help boost trade and investment, he said.
Chidambaram clarified issues related to anti-dumping duty, which was revoked by the Indian government last year.
Abdullah Al-Mobti, Chairman of the Council of Saudi Chambers, while co-chairing the business meeting with Chidambaram, said: "The visit of Prince Salman will serve to discuss pathways for deepening the bilateral political and economic relationship."
Chidambaram also met Prince Muqrin Bin Abdulaziz, the second deputy premier.
