Modi hails Saudi ties after ‘historic’ route unveiled

AFP | New Delhi        

The Daily Tribune – www.newsofbahrain.com

India hailed its “strategic” partnership with oil-rich Saudi Arabia yesterday, days after unveiling a major trade and transport route linking Europe, the Middle East, and India as part of a broad alliance.

“Together, we made the historic start to establish an economic corridor,” Indian Prime Minister Narendra Modi told Saudi Arabia’s Crown Prince Mohammed bin Salman in New Delhi.

On Saturday, the pair took part alongside other G20 leaders in the unveiling of ambitious plans to create a modern-day Spice Route, boosting trade ties with potentially wide-ranging geopolitical implications.

“This corridor will not only connect the two countries, but economic cooperation, digital connectivity between Asia, West Asia and Europe,” Modi added, in talks following the end of the two-day Group of 20 leaders’ summit he hosted.

Train links to India

An Indian foreign ministry official said the new ports and railway corridor for the Middle East and South Asia will include train links to India. Asked about the proposals, Ausaf Sayeed, a secretary in the Foreign Ministry, spelled out that the corridor would include trains to India and not just links by port.

“India would be connected by railroads is the right interpretation, rather than India building the railroads,” he said in response to a question at a media briefing.

The corridor would be “the equivalent of the Silk Route and Spice Road,” Saudi Investment Minister Khalid Al Falih said at an event in New Delhi later in the day, adding that it will provide “greater energy connectivity, green materials and processed and finished goods that will rebalance the global trade.”

During Saudi Crown Prince Mohammed bin Salman’s state visit to New Delhi on Monday, India and Saudi Arabia also discussed the possibility of trading in local currencies and expediting the negotiations for a free trade agreement between India and the Gulf Cooperation Council, of which Saudi Arabia is a member.

Eight deals signed

Sayeed said the two countries signed eight agreements on Monday, including a pact to upgrade their hydrocarbon energy partnership to a comprehensive energy partnership for renewables, petroleum and strategic reserves.