New Delhi: Discussions were held between the two countries on trading in India’s rupee and Saudi Arabia’s Riyal. Along with this, India’s Ministry of Commerce informed that the commerce ministers of both countries also discussed using India’s payment systems ‘UPI’ and ‘RuPay Card’ in Saudi Arabia. If the ongoing talks with Saudi Arabia, a leading fuel supplier of India, are successful, the position and momentum of the Indian economy could change. Therefore, the significance of India’s Commerce Minister Piyush Goyal’s visit to Saudi has increased enormously.
After the Ukraine conflict broke out, India was forced to trade in rupee-ruble due to US sanctions on Russia. India benefited greatly as the dollar was deducted from the trade between the two countries. Other countries are also eager to transact in Indian Rupee, followed by Russia. Union Finance Minister Nirmala Sitharaman had recently informed that the Reserve Bank had taken the necessary steps to encourage transactions in rupee at the international level. In such a situation, Commerce Minister Piyush Goyal arrived in Saudi Arabia for trade talks between India and Saudi Arabia. His two-day tour, which began on September 18, becomes noticeable.
Discussions with Saudi Arabia were held on widening and expanding trade between the two countries and removing barriers to trade. It also included the issue of Saudi recognition and opportunities for India’s pharmaceutical sector. However, the main issue of this discussion was the transaction between the rupee and riyal. Along with this, Piyush Goyal and the Saudi Minister Abdulaziz bin Salman Al Saud negotiated to launch India’s payment system UPI and RuPay card in Saudi as well, the Ministry of Commerce of India informed. Besides, experts have selected 41 areas with great opportunities for trade cooperation between the two countries. The meeting also agreed to expand cooperation in agriculture, food security, energy, technology and IT, industry and infrastructure.
These include a time-bound programme to set up a fuel-refining plant on India’s west coast, LNG-related facilities and strategic stockpiling of petroleum products in India. This could immensely benefit India’s fuel security in a climate of global volatility. Moreover, the meeting between the two countries dignitaries exchanged views on the industrial sector, increasing India’s exports to Saudi and Saudi investment in India.
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