India, GCC agree to resume talks on free trade agreement

Nayef Falah Al-Hajraf, Secretary General of the Cooperation Council for the Arab States of the Gulf (GCC), speaks during a press conference in the Saudi capital Riyadh on March 17, 2022. (AFP)
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Updated 25 November 2022
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India, GCC agree to resume talks on free trade agreement

  • Development comes 14 years after the last round of negotiations between the two sides
  • GCC is already India’s largest trading partner, with a bilateral trade volume of $168 billion

NEW DELHI: India and the Gulf Cooperation Council have decided to resume talks on a free trade agreement, India’s trade minister and the GCC secretary-general announced Thursday, 14 years after the last round of negotiations.

The GCC is a union of six countries in the Gulf region — Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

This is the third attempt at a trade pact between the two sides, with two inconclusive rounds held in 2006 and 2008.

The announcement regarding the resumption of talks came after a meeting of the Indian Trade Minister Piyush Goyal with GCC Secretary-General Nayef Falah Al-Hajraf.

I am sure the engagement with the GCC will be in tune with the truly unique and special relations enjoyed by the countries of the GCC region and India. I am quite confident that the two sides will set new benchmarks together.

Piyush Goyal, Indian trade minister

“I am sure the engagement with the GCC will be in tune with the truly unique and special relations enjoyed by the countries of the GCC region and India. I am quite confident that the two sides will set new benchmarks together,” Goyal said at a joint press conference with Al-Hajraf.

“We have agreed to pursue an FTA between GCC and India and resume the negotiation and conclude the same at the earliest.”

He said the GCC was already India’s largest trading partner, with the bilateral merchandise trade valued at $154 billion and bilateral trade in services at $14 billion in the year 2021-22.

The GCC countries contribute almost 35 percent of India’s oil imports and 70 percent of its gas imports, according to Indian commerce ministry data.  

India’s overall crude oil imports from the GCC remained about $48 billion, while liquefied natural gas and liquefied petroleum gas imports stood at about $21 billion in 2021-22.

“Over the last two years or so, the world has been hit by the pandemic and the economic outlook looked uncertain and it is the time to capitalize on the already existing strong relations between the GCC and India,” Al-Hajraf said in his opening statement.

He said India and the GCC were making joint efforts in the areas including trade, investment, technology, climate change and food security.

“We very much appreciate the contributions made by the Indian expats living in the GCC countries and contributing to the GCC economy,” the GCC secretary-general said.

There are an estimated 32 million non-resident Indians across the world, and nearly half of them are estimated to be working in Gulf countries.

India earlier this year signed an FTA with the UAE, which is now the third largest trading partner of the South Asian republic after the US and China.  

India received $87 billion in foreign remittances in 2021 and a sizable chunk of this amount came from the Gulf region, according to a report published by the World Bank.

“GCC countries are the most important component of India's Act West policy, and this important economic bloc in the region is the largest trading partner among regional organizations,” Muddassir Quamar of the New Delhi-based Institute of Defense Studies and Analyses think tank told Arab News.

“The FTA will further boost bilateral trade and remove any hurdles faced by industries in both India and GCC countries in export-import.”

The trade pact “will be the next critical step in our special strategic partnership with GCC countries,” said Anil Trigunayat, India’s former ambassador to Jordan.

“The historic and civilizational connect has been converted into a mutually beneficial strategic opportunity, therefore it is natural that the two sides find an institutional mechanism like FTA at the earliest,” Trigunayat told Arab News.

It “will comprehensively and futuristically encompass all areas of possible cooperation — trade, technology, services, mobility, investments — by addressing genuine concerns of both sides.”

Manish Singhal of the Federation of Indian Chambers of Commerce and Industry said the “free trade agreement with the GCC has huge economic potential for India.”  

He added: “If it’s a comprehensive FTA, then the investments and mutual recognition of standards in the pharmaceutical and engineering sectors will see a big boost, especially in terms of our exports.”  

 


Saudi Arabia set to finance bridge construction in eastern Sri Lanka

Updated 5 sec ago
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Saudi Arabia set to finance bridge construction in eastern Sri Lanka

  • Saudi Fund for Development previously financed Kinniya Bridge, Sri Lanka’s longest
  • Kingdom has helped finance various projects in, granted development loans to the country

COLOMBO: Saudi Arabia is to finance a bridge construction project in Sri Lanka’s eastern district of Trincomalee, the Kingdom’s envoy in Colombo said on Thursday.

Sri Lanka’s Ministry of Finance, Planning and Economic Development and the Saudi Fund for Development have signed a revised agreement for a $10.5 million infrastructure project in the coastal town of Kinniya that will connect it to the Kurinchakerny peninsula.

The ministry announced on Wednesday: “(Some) $10.5 million has been allocated for the construction of Kurinchakerny Bridge, facilitating the transport and business needs of approximately 100,000 residents.”

The funds were repurposed from an earlier project between the Sri Lankan government and the SFD, the Saudi Ambassador to Sri Lanka Khalid bin Hamoud Al-Kahtani said.

The Kingdom previously funded the reconstruction of the Peradeniya-Badulla-Chenkaladi road in Sri Lanka, which connected the country’s eastern, middle and southern provinces. The massive project, which helped improve road safety and mobility in the island nation, was completed in 2021.

“The balance left from the project has been given for the construction of the project on a request made by the Sri Lankan government,” Al-Kahtani told Arab News.

“Through the revised agreement, it is expected to transfer funds that remained in the aforesaid project … and to mobilize the same towards construction of the Kurinchakerny Bridge (in Kinniya). It is envisaged to provide solutions to many transport difficulties.” 

Saudi Arabia has helped finance over a dozen projects in Sri Lanka, covering education, water, energy, health and infrastructure. The SFD has also granted at least 15 development loans to the island nation, worth more than $425 million in total.

In Trincomalee, the new bridge will be the second financed by the Kingdom after the Kinniya Bridge. At 396 meters it is the longest bridge in Sri Lanka and was opened in 2009.

A.L. Ashraff, a Kinniya-based journalist, said that the Kinniya Bridge had “triggered the region’s economic and cultural development.” 

The Kurinchakerny Bridge, he said, was a “fantastic gift for the thousands of people in Kinniya, which would make their daily life easier.”


5 treated after stabbing in south London, 1 man arrested

Updated 11 min 33 sec ago
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5 treated after stabbing in south London, 1 man arrested

Metropolitan Police said that a man was arrested following the stabbing in Croydon
Authorities didn’t provide a motive for the stabbing

LONDON: Five people have been treated following a stabbing Thursday morning in south London, according to London’s Ambulance Service.
London’s Metropolitan Police said that a man was arrested following the stabbing in Croydon, which British media reports said happened near an Asda supermarket. Authorities didn’t provide a motive for the stabbing.
The ambulance service said that one person was taken to a major trauma center in London and four other people were hospitalized.
“We sent a number of resources to the scene, including ambulance crews, a paramedic in a fast response car, an incident response officer, members of our Tactical Response Unit and London’s Air Ambulance,” the service said.
The violence came on the same day that a teenager faced sentencing for fatally stabbing three girls at a Taylor Swift-themed summer dance class in the northwestern English town of Southport.

Police in Hungary investigate bomb threats affecting over 240 schools

Updated 55 min 44 sec ago
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Police in Hungary investigate bomb threats affecting over 240 schools

  • The threats, which came in the form of emails, were identical in their text
  • Officers were being dispatched to all affected institutions

BUDAPEST: Police in Hungary said Thursday they were investigating bomb threats that were sent to more than 240 schools across the country, resulting in classes being canceled at some schools.
The threats, which came in the form of emails, were identical in their text and likely sent by a single sender, police said in a statement. Officers were being dispatched to all affected institutions. No explosives or explosive devices were found in the buildings inspected so far, police added.
Gergely Gulyás, chief of staff to Prime Minister Viktor Orbán, said that “education in most schools in the country proceeds smoothly,” and that school administrators could decide for themselves whether to send students home.
He said Orbán on Thursday had consulted repeatedly with the interior minister and the minister in charge of Hungary’s secret services.
The emails were sent from numerous email providers “including foreign ones,” Gulyás said. Hungarian secret services were in consultation with their counterparts in neighboring Slovakia, where similar bomb threats were made last year, Gulyás said.
On Wednesday, numerous schools in around a dozen cities in Bulgaria also received bomb threats, according to Bulgarian public broadcaster BNT.


Kyiv claims Russian forces killed six captured Ukrainian troops

Updated 23 January 2025
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Kyiv claims Russian forces killed six captured Ukrainian troops

  • Officials both in Moscow and Kyiv have accused the other’s army of carrying out killings
  • “In the video, the occupiers recorded their own crime,” Ukrainian human rights ombudsman Dmytro Lubinets wrote in a social media post

KYIV: Kyiv accused Russian forces on Thursday of killing six captured Ukrainian servicemen and said it was notifying international rights groups of the latest alleged Russian war crime.
Officials both in Moscow and Kyiv have accused the other’s army of carrying out killings of captured soldiers in violation of international law.
The Ukrainian human rights ombudsman Dmytro Lubinets made the allegations referring to footage circulating on social media that appears to show Russian troops shooting unarmed Ukrainian troops to death.
“In the video, the occupiers recorded their own crime — shooting six Ukrainian soldiers who were captured in the back,” he wrote in a social media post.
The video, which has spread across social media, could not be verified by AFP and there was no immediate comment from Moscow on the claims.
It appears to show Russian soldiers in a muddied frontline area ordering the Ukrainian troops to a clearing where they are then shot in the back one by one.
“I am once again sending information about this crime to the UN and the ICRC (International Committee of the Red Cross). These facts must be recorded,” Lubinets added.


Saudi Arabia’s transformation attracting rising number of students in India

Updated 23 January 2025
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Saudi Arabia’s transformation attracting rising number of students in India

  • India’s Education Ministry sponsored a university program on the Kingdom’s development programs
  • Sessions in New Delhi also garnered interest from students in other parts of India, coordinator says

NEW DELHI: Saudi Arabia’s transformation programs and Vision 2030 are gaining interest among university students in India, as one of the country’s most prestigious educational institutions hosts a special course on the topic this week.

The five-day course — organized by Jawaharlal Nehru University in New Delhi in cooperation with the Ministry of Education — is part of the Indian government’s Global Initiative of Academic Networks program aimed at encouraging exchanges with the world’s top faculty members and scientists.

The special course that will conclude on Friday has been led by Prof. Joseph Albert Kechichian, senior fellow at the King Faisal Center for Research and Islamic Studies in Riyadh, who specializes in West Asian politics and foreign policy, especially of the Gulf region.

The sessions have attracted students from different parts of India, said Prof. Sameena Hameed from the JNU’s Centre for West Asian Studies, who coordinates the course.

“It’s a very niche course focused on one country and a specific region but to our surprise it has gained traction,” Hameed told Arab News, adding that the number of registered participants was double the initial expectation of 50 students.

“I’m still receiving the request from students … down south in Kerala and other states as well, so it means these kind of subjects are gaining traction because it moves in tandem with India’s increasing bilateral interest and relations in the region.”

The rising interest among Indian students was also evident for Kechichian, who was visiting India for a third time after previous speaking engagements at JNU in 2006 and 2016.

“In 2025, I’m beginning to notice sharp improvements, sharp interests in terms of young scholars who are looking at Saudi Arabia in very different eyes; no longer looking at it only as the mere oil producer, but also as a dynamic society with which Indian communities must come to terms (with), and that’s a positive development,” Kechichian told Arab News on the sidelines of the sessions on Tuesday.

The course, which was also livestreamed to registered participants, aims to provide people with “a comprehensive understanding of the changes that are taking place in the Kingdom,” he added.

“Saudi Arabia is is a young country; the majority of the population is relatively young and they are in the process of acquiring new skills, opening new opportunities in terms of entrepreneurship and others, and, obviously, all of these young people need to have contacts with the rest of the world, among whom India, of course, plays an important role as well.”

Saudi-Indian ties have steadily gained prominence over the past three decades, and reached a new level of engagement in 2019, following Crown Prince Mohammed bin Salman’s visit to New Delhi and the establishment of the Strategic Partnership Council.

These aspects set the stage for further collaboration, which gained momentum when Saudi Arabia presided over the Group of 20 largest economies in 2020, followed by India’s presidency of the bloc in 2023.

The evolving relationship has not only deepened strategic ties, but also fostered cooperation in trade, security, new technologies and regional stability.

Amid “tremendous interest” to improve ties between Saudi and Indian business communities, Kechichian said that such courses will help both sides to get to know each other better and pave the way for future cooperation.

“All indications are, in fact, that both sides are trying to encourage business leaders to create entrepreneurship and to do as much as possible to benefit both sides,” he said.

For Aarya R. Sardesai, a political science student at the Janki Devi Memorial College in the University of Delhi, understanding Saudi Arabia better was integral to her education.

“Obviously, it will benefit me to know in terms of how my country and Saudi Arabia can have better relations and stronger ties in future,” Sardesai told Arab News.

“I think Saudi Arabia is trying to set a new trend; it is trying to incline itself with the fast-paced globalized world and the attempts that they are making to bring these shifts … are quite commendable.”

The changes happening in Saudi Arabia were a point of attraction for many of the participants.

“This is more about the future parts of Gulf countries and how they are going to go about diversifying their economies … it is very close to my research,” said Ph.D. student Deepika Matangi.

Kelvin Benny, a Ph.D. candidate at JNU, said that he took part in the course because of Saudi Arabia’s importance in India’s Act West Policy, a government strategy aimed at strengthening relations with Arab countries.

“So, for our academic input we need deep research on Saudi, and especially Saudi is a country undergoing a huge transformation from a typical oil-based economy to a modern economy,” Benny told Arab News. “So, in this context, Saudi is very essential.”