SDG 9: Industry, Innovation and Infrastructure | SDG 17: Partnerships for the Goals
Institutions: Ministry of Chemicals and Fertilizers
A bilateral meeting was held between the Department of Chemicals & Petrochemicals, Government of India, and the Ministry of Industry and Minerals, Kingdom of Saudi Arabia, to significantly enhance cooperation in the Chemicals and Petrochemicals sector. The engagement underscores the strong economic ties between the two nations; Saudi Arabia is India’s fourth largest trade partner, and India is Saudi Arabia’s second largest, with bilateral trade reaching USD 41.88 billion in 2024–25. Chemicals and petrochemicals currently account for nearly $4.5 billion, or 10%, of this trade.
The discussions successfully identified key complementarities that can be leveraged. Saudi Arabia’s strength lies in Petrochemicals, while India holds a competitive advantage in Speciality Chemicals. It was agreed to enhance cooperation to harness this synergy across the entire value chain.
Key areas of collaboration were defined, including promoting investments in India’s Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) and forging partnerships between major companies of both nations. Both sides also committed to cooperating in Research & Development (R&D) and skill development within the sector, reaffirming a commitment to a sustainable and mutually beneficial strategic economic partnership.
This agreement is a crucial move toward supply chain diversification and establishing strategic partnerships in the core manufacturing sector. By aligning Saudi Arabia’s raw material strength (petrochemicals) with India’s value-added strength (speciality chemicals) and inviting investment into PCPIRs, the policy helps secure domestic supply chains and boosts India’s export capability in high-value products.
What is a PCPIR? → A Petroleum, Chemical and Petrochemical Investment Region (PCPIR) is a specially delineated investment area proposed by the Government of India, spanning around 250 sq. km, designed to attract large-scale investment in the chemicals and petrochemicals sectors by providing world-class infrastructure, high-quality utilities, and single-window clearances.
Relevant Question for Policy Stakeholders: What specific policy mechanisms are required to ensure Saudi investment in PCPIRs translates into technology transfer and advanced R&D capacity for India’s Speciality Chemicals sector?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2179199