Saudi Arabia, India Start Talks to Settle Rupee-Riyal Trade

Saudi Arabia, India Start Talks to Settle Rupee-Riyal Trade

India has initiated talks with Saudi Arabia for rupee-riyal trade even as the oil-rich West Asian nation is committed to investing $100 billion in India, and cooperate in joint projects such as a west coast refinery, liquefied natural gas infrastructure, and strategic petroleum storage facilities, an official said.

After the Reserve Bank of India in July permitted international trade settlements in rupee, many countries, including Russia and Iran, are exploring options to trade in local currencies, the official aware of the development said, requesting anonymity. "RBI has opened up one more payment option for international trade settlement, which is possible bilaterally," he said. Commerce Minister Piyush Goyal, who held meetings with key officials of Saudi Arabia during his two-day visit to the kingdom on September 18-19, discussed bilateral trade and investment related issues, the official said. The two partners are also keen to cooperate in the fields of both conventional and green energy, he said.

Saudi Arabia is a reliable energy supplier for India, which imports 85% of its crude oil and 54% of natural gas requirements and pays in US dollars. "These meetings are important for India's energy security," the official said. Goyal held meetings on "diversification and expansion of trade