Saudi Arabia is long been known as the world’s largest oil exporter. The Saudi Crown Prince announced that if India would get help from Saudi Arabia then they could improve their worse economic conditions. India has faced a huge decline in the growth of the income as the Covid-19 has hit the whole of the economic activity of India. So, in February last year, Saudi Arabia has declared that it would invest over USD 100 billion in India in many fields like refining, infrastructure, agriculture, and various other sectors.
The new investment plan
The initiative is mainly a welcome step in improving the efficiency of the work environment in Saudi Arabia and also India will get a huge scope to revive its economy. For a long time, it is been mentioned that Saudi Arabia and India share a good relationship as strategic partners and also as close friends. Defense and security are also the two spheres where if both the countries work as a group, it will stand up as a mutual benefit to both the countries and also to other regions as well.
The contractual relationship
The Strategic Council which has been set up in 2019 has opened new partnership routes in areas like security counter-terrorism and renewable energy. This council will also enhance the legitimate relationship between the workers and the employers, help in developing labor competencies. Also developing a good work environment is a part of the council. The workers of Saudi Arabia and the outlander always have a disparity between them. But this contract can also reduce the disparity to a huge extent. The flexibility in the work, and also the increase in productivity within the private sector which mainly attracts the skilled talent of so many people can also be achieved by this contractual relationship.
Chances of bouncing back from the adverse effects
As India has agreed to the new investment laws of Saudi Arabia, the country itself must also establish some new strategic plans to bounce back properly from the adverse effects of the pandemic. As the share market has witnessed huge crashes every day, so it is high time for India to count their advantage as well.
The Policy Times Suggestion
- The economy of India had a sizeable impact due to the lockdown during the last nine months. The conditions became worsen. So now to improve it, the strategic plans must be kept following the benefits as well.
- To revive its economy, the Prime Minister must set up new economic laws so that the global supply chains which are being disrupted by the Covid-19 can then only be bounced back.
Also read: VAT in United Arab Emirates and Saudi Arabia