India, Saudi Arabia agree to move ahead with Electrical Interconnection Initiative
New Delhi, Oct 19 (IANS) India and Saudi Arabia held a high-level official discussion on ways to take forward the bilateral Electrical Interconnection Initiative between the two countries and explore avenues for strengthening cooperation in the power sector.
Pankaj Agarwal, Secretary, Ministry of Power, held a virtual bilateral meeting with Nasser Al-Qahtani, Assistant Minister of Energy for Electricity Affairs, Kingdom of Saudi Arabia, to review the progress of the India–Saudi Arabia Electrical Interconnection initiative, according to an official statement issued after the meeting.
The discussions focused on the progress of the proposed electrical interconnection between India and Saudi Arabia, which holds significant potential to deepen bilateral energy cooperation. Both sides exchanged views on the way forward and underscored the importance of sustained engagement to advance the initiative, the statement said.
The two sides also explored opportunities to broaden cooperation in other areas of mutual interest in the power sector, with an emphasis on technical collaboration, knowledge sharing and the exchange of best practices.
The Saudi Arabian side expressed interest in enhanced cooperation in the areas of Extra High Voltage (EHV) transmission systems, addressing technical and operational challenges associated with higher penetration of renewable energy in the grid, strategies for accommodating the growing power requirements of emerging data centres, and updating grid codes to address evolving power system requirements.
Both sides reaffirmed their commitment to maintaining constructive dialogue to further deepen the India-Saudi Arabia partnership in the power sector.
Economic ties between the two countries have steadily grown over the years. India is the 2nd largest trade partner of Saudi Arabia, whereas Saudi Arabia is the 5th largest trading partner of India. In FY 2025-26, bilateral trade stood at USD 41.07 billion, with Indian exports at USD 10.28 billion and imports at USD 30.79 billion.
Major commodities exported from India to Saudi Arabia include engineering goods, rice, petroleum products, chemicals, textiles, food products, and ceramic tiles. Major commodities which India imports from the Kingdom are crude oil, LPG, fertilisers, chemicals and plastics.
The total Saudi investment in India, including that of the Saudi sovereign wealth fund – PIF, other Saudi companies and the Saudi-backed Vision Fund, has been about USD 10 billion. Major Saudi investors in India include ARAMCO (energy), Zamil Group (steel), Al Fanar (renewable energy), SABIC (chemicals), SALIC (food sector), Abdul Latif Jameel (auto sector) and Petromin (automobile solutions).
Indian investment in KSA has increased in recent years, reaching approximately USD 3 billion (August 2023). These investments are across diverse sectors such as consultancy services, construction projects, telecommunications, information technology, financial services and software development, pharmaceuticals, etc. There are over 6000 Indian companies registered in the Kingdom.
–IANS
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