4 Key Takeaways From PM Modi's Saudi Visit

It is clear that India and Saudi Arabia are trying to turn the page on issues that divide them. And what better way to do this than to increase trade and investment? The meetings are done, dozens of pacts have been signed. Here's a look at the key takeaways from the Prime Minister's visit to Riyadh.

1. Oil Sector

Starting with the oil sector. Now, most of us might remember the attack on Saudi Aramco's crude oil facilities last month. they plunged the world's oil industry into uncertainty. The markets are still in turmoil.

Also to blame the sanctions on Iran and Venezuela. There's the talk of a collective response to this crisis and this is critical for India which imports more than 80 percent of its oil. So India must safeguard its interests. The question is how?

By deepening economic linkages with Saudi Arabia especially in the oil sector After all Saudi Arabia is India's second-biggest supplier. Iraq remains the top source. India imports around 18 percent of its crude oil from the Saudis. In the Prime Minister's own words. "India and Saudi Arabia are moving towards a closer strategic partnership from a mere buyer-seller relationship".

What does this mean? It means cross country investments in the oil sector. Aramco is already participating in a major refinery and petrochemical project on India's west coast. And this is a win-win. Aramco may still be the most profitable company in the world but it needs to find a stable outlet. As for India, this means secure oil supplies at affordable rates. Now, this strategic partnership does not restrict itself to the oil sector. Which brings us to the second big takeaway.

2. Investment

Prime Minister Modi has welcomed Saudi investments in India's infrastructure projects, especially in the Smart Cities program. The two nations have signed an agreement on a strategic partnership council. A council that will boost counter-terrorism operations trade security and defense cooperation.

Bilateral trade between the two countries currently stands at 28 billion dollars. India wants this figure to go up. But the strategic partnership is just one piece of the puzzle for India with its 200 million-strong Muslim population. There is no denying that friendship with Saudi Arabia brings certain legitimacy as well.

3. RuPay Card Launch

Keeping that in mind the prime minister will launch the RuPay card in the kingdom. The primary purpose is to aid Indian pilgrims visiting Mecca and Medina every year. The goodwill, of course, is being reciprocated with the kingdom increasing the Hajj quota for India from just over 17 lacs to 20 lacs.

In the long run, The RuPay launch is going to have the Indian expats in Saudi Arabia close to 300 million of them in payments and remittances. The Saudi kingdom is now the fifth country to get the facility after Bahrain,  UAE, Bhutan, and Singapore. This is a significant marker of India's global ambitions.

Today it is going places joining the League of international players like MasterCard and Visa. Eleven hundred banks have issued more than 600 million rupiah cuts.

4. Pakistan

And finally the biggest takeaway of Prime Minister Modi's visit. The message to Pakistan. the Saudi kingdom's willingness to demonstrate geopolitical diversification. its relations with South Asian countries will not be guided by religion.

For years Pakistan remained the third wheel in the Saudi India relationship. Now it has been decisively detached. So while Saudi Arabia aids Pakistan while Saudi Arabia hires a former Pakistan army chief to lead its troops and while Saudi Arabia lends a plane to the Pakistani prime minister it treats India as a partner. A strategic and business partner.

By the way, the Pakistani government is missing from the summit. That investment options are limited you see some businessmen from Pakistan are participating retort.