How Saudi Arabia's $100 billion Investment in India Will Go a Long Way In Meeting Infrastructure Goals The investment will help India in meeting its target to invest INR 100 trillion on infrastructure by 2024-25

By Vinayak Sharma

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock

The kingdom's ambassador to India, Saud bin Mohammed Al Sati, recently said Saudi Arabia is looking to make investments in India potentially worth $100 billion in the areas of energy, refining, petrochemicals, infrastructure, agriculture, minerals and mining.

Infrastructure in India

Infrastructure is one of the sectors which gets the highest foreign direct investment (FDI). Inflows in the verticals such as townships, construction development projects and housing were recorded at $25.5 billion between FY00 and FY19. Schemes such as "Housing for all' and "Smart Cities Mission' have benefitted from these investments.

In August, the Union Cabinet allowed 100 per cent FDI in coal mining and related infrastructure activity. The government has been burning midnight oil to stabilize the economy in the past few months and has given a massive push to the infrastructure sector by allocating INR 4.56 lakh crore in the last Budget.

Saudi Arabia's Investment in Indian Infrastructure

According to the Saudi Vision 2030, the country plans to invest in robust markets to diversify the economy and reduce its dependence on income from oil. In India, the investments are likely to be in petrochemicals and highways, among others.

Saudi Arabia's interest to invest in India is likely to pace up ongoing projects related to highways and housing. According to the Saudi ambassador, it has been observed that around 40 opportunities for joint collaborations across various sectors majorly infra and petrochemicals have been identified between India and Saudi Arabia.

Petrochemicals and Other Sectors

India imports 19 per cent of its crude oil and 32 per cent of LPG requirement from Saudi Arabia. Referring to the Saudi Arabia's oil behemoth Aramco's close ties with Mukesh Ambani-led Reliance Industries, the ambassador said it will important in developing energy ties between the two nations.

"Saudi Aramco's proposed investments in India's energy sector such as the $44 billion West Coast refinery and petrochemical project in Maharashtra and long-term partnership with Reliance Industries represent strategic milestones in our bilateral relationship," the Saudi ambassador said.

Speaking about the vision 2030, the ambassador mentioned that Saudi Arabia is looking at the post-oil age world-class technology research and entrepreneurial diligence.

Foreign Investments in Indian Infrastructure

Japan has always been an active player in investing in the Indian market. From automobiles to railways, Japan has played a vital role in boosting Indian infrastructure. Aiming to augment the sector, India has joined hands with Japan to forge ties for advanced development of the north-eastern states and is setting up India-Japan Coordination Forum.

Vinayak Sharma

Entrepreneur Staff

Correspondent, Entrepreneur India

Related Topics

Leadership

Vaishali Dev: A Journey of Resilience, Diversity, and Success

As the CEO of a government-contracted manufacturing firm, Vaishali Dev seamlessly manages multiple businesses, including fashion and events.

Leadership

How to Win Over the Room With Effective Persuasion Skills

The art of persuasion is not just about the notes, the data, and the pitch; it's about creating a connection that resonates with the audience. We explore how a blend of story, active listening, and genuine interaction can not only capture attention but also win hearts and minds, setting the stage for achieving success in any meeting.

Starting a Business

New Research Reveals 4 Personality Traits That Most Wealthy Entrepreneurs Share

In the book "Rich Habits," author and CPA Tom Corley shares the daily success habits of his most successful clients.

Leadership

Great Leaders Must Be Great Coaches — Here's How to Become One

To be a successful leader, you must become an expert in how to help others grow and develop. Here's a research-driven approach for entrepreneurial leaders to coach and effectively develop their teams.

Business News

This Influencer Has Nearly 150,000 Instagram Followers and Makes Over $10,000 a Month. There's Just One Catch—She's Not Real.

Aitana López has over 149,000 Instagram followers and brands love her. Is she the future of social media marketing?

Business Ideas

This Teacher Sells Digital Downloads for $10. Her Side Hustle Now Makes Six Figures a Month: 'It Seems Too Good to Be True, But It's Not.'

When one middle school teacher needed to make some extra income, she started a remote side hustle with no physical products and incredibly low overhead. Now she brings in six figures each month, and offers courses teaching others how to do the same.