G20: India, Saudi Arabia discuss ports-rail project, local currency trade

India will be connected to the Middle East by railway as part of a multilateral Middle East-South Asia rail and ports corridor that was launched on the sidelines of a G20 conference over the weekend, an official from the Indian foreign ministry said on Monday.

With the United States, Saudi Arabia, India, the European Union, and the United Arab Emirates as participants, the international rail and port agreement would connect the Middle East to South Asia and is seen as a rival to China's massive Belt and Road Initiative.

India and Saudi Arabia also discussed the potential for trading in local currencies and accelerating the negotiations for a free trade agreement between India and the Gulf Cooperation Council, of which Saudi Arabia is a member, during Saudi Crown Prince Mohammed bin Salman's state visit to New Delhi on Monday.

The two nations inked eight agreements on Monday, according to Ausaf Sayeed, a secretary in the foreign ministry, including a deal to transform their hydrocarbon energy collaboration into a comprehensive energy partnership for renewable, petroleum, and other sources of energy.

India receives a significant amount of petroleum exports from Saudi Arabia.

According to Sayeed, they also decided to establish a combined task force for a $100 billion Saudi investment, of which half is designated for a postponed refinery project along India's western coast.

Sayeed stated that improved roads, ports, railroads, power, gas, and optical fibre networks will all be a part of the connection between India and the Gulf nations.

The Indian president and the Saudi crown prince discussed cooperation in space, semiconductors, and joint production of weapons during their earlier-in-the-day meetings.