With the Saudi Arabian King, Abdullah bin Abdulaziz’s visit to India, bilateral trade between India and Saudi Arabia is expected to go up considerably from the current $3 billion. And the sector which will profit most is the Indian textile sector.

Despite stiff competition from Pakistan, Sri Lanka, Bangladesh and even China, India I believe, has the right ingredients to thrive owing to the good bilateral relations that it shares with the nation. The price factor and smooth export transactions that Saudi Arabia provides for the industry will also help India Inc. tremendously.

I am told that the Indian embassy in Saudi Arabia is being thronged by hundreds of businessmen wanting to come to India. And if India simplifies some of its restrictions and bureaucratic hurdles to attract the Saudi business community, I see a bright future for the exim communities in both the nations.

Moreover, the sops offered to ASEAN countries in terms of tariff relations and simple procedures, will also have to be extended to Saudi Arabia so as to attract the business community to venture into India instead of the other Asian giants.

Once these hurdles are done away with and the stringent restrictions that check the inflow of Gulf capital into India removed, exports in other sectors including gems and jewellery, car spare parts, medical equipment and agriculture products will get the much-needed fillip.

And perhaps the King’s visit will set into motion the process that will see added energy in Indo-Saudi trade ties.

Monthly Economic & Commercial Report on Kuwait for December 2005 giving latest updates on developments directly affecting India's foreign trade and investment.

As the Indian tea industry fights a grim battle to be in the market with a drastic dip in exports, there is a glimmer of hope from across the border.