Will politics help Indian petrochemical companies gain access to cheap Saudi feedstock? Well, the government appears to be making an effort in this direction.
During his visit to Saudi Arabia last week, India’s external affair minister emphasised the need for greater participation by Indian companies in Saudi oil and gas exploration as well as the petrochemicals industry. There is plenty of action in the Kingdom as there are plans to spend around $117bn in this sector over the next two years.
There will be tough competition especially from western multinationals well entrenched in this region. But Indian companies could gain an edge by offering access to the fast growing home market.
Relations between India and Saudi Arabia are being strengthened. Both sides have agreed to set up a Saudi-India investment fund for investment in major projects.