New Delhi: Saudi Arabia’s Crown Prince Mohammed bin Salman will visit India next month. The Crown Prince is said to be coming to India on a special invitation from Prime Minister Narendra Modi. Before this visit, the energy minister of Saudi Arabia will arrive in India next week. The direct transaction between the Indian rupee and the Saudi riyal will be discussed. If India, which buys a huge amount of fuel from Saudi Arabia, starts trading in rupee-riyal with this country, then the state of the Indian economy can change rapidly. Therefore, the visit of the Saudi Energy Minister and then Crown Prince Mohammed bin Salman to India has gained great strategic importance.
Last month, India’s Commerce Minister, Piyush Goyal, was on a visit to Saudi Arabia. On this occasion, he had a critical discussion on issues like trade between the two countries, Saudi recognition of Indian medicines and trade in rupee-riyal. There were also reports that Commerce Minister Piyush Goyal had discussed the launch of India’s UPI and RuPay cards in Saudi Arabia. Economic cooperation between India and Saudi Arabia has a huge background.
The US dollar is an international currency and Saudi Arabia and most fuel-producing countries deal in dollars. But after straining relations with the US, Saudi Arabia had also taken steps to deal in China’s Yuan. Analysts said this was a warning from the Saudis to the US.
After China’s Yuan, Saudi Arabia accepts the Indian rupee, removing the dollar from its transactions. This will greatly benefit India. As a result, India will not have to use billions of dollars from its reserves for fuel. Following Saudi Arabia, other countries supplying fuel to India may also be willing to transact in rupees. This will greatly enhance the credibility and impact of the rupee at the international level. Considering the aggressive steps taken by the US to increase the value of its dollar, this deal between India and Saudi Arabia has caught the attention of the whole world. After India and Russia took the initiative to trade in rupee-ruble, there is a possibility that Saudi Arabia will also sell its fuel to India in rupees like Russia.
The Saudi-influenced OPEC Plus countries have announced cuts in oil production of up to two million barrels per day, adding to US concerns. The Saudis rejected the US president’s demand to increase fuel production and cooperate to keep fuel prices under control. This has led to tensions between the US and the Saudis and the US has threatened the Saudis with consequences. In such a situation, Saudi Arabia is increasingly expanding its cooperation with a country with an independent foreign policy like India. India is also responding to this. A few weeks ago, India and Saudi Arabia discussed cooperation in alternative energy by laying a submarine cable. It was reported that the cable would be 1,600 kilometres long and the project would cost billions of dollars. The project is also expected to be discussed during the visit of Crown Prince Mohammed bin Salman and Saudi Energy Minister Abdulaziz bin Salman to India.
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