Indian Prime Minister Narendra Modi has praised the “limitless potential” of India’s growing ties with Saudi Arabia as he arrives in Jeddah for a two-day visit, his third to the Kingdom since 2016. In an exclusive interview with Arab News, he described the Kingdom as “a trusted friend and strategic ally,” emphasizing how bilateral relations had expanded significantly since the creation of the Strategic Partnership Council in 2019.

“Our partnership has limitless potential,” Modi said. “In a world full of uncertainties, our bond stands strong, as a pillar of stability.” He praised Saudi Crown Prince and Prime Minister Mohammed bin Salman’s leadership, calling him “a strong advocate of our bilateral ties” and a visionary who has inspired global admiration through the reforms under Vision 2030.

“Every time I have met him, His Royal Highness has left a deep impression on me. His insights, his forward-thinking vision, and his passion for fulfilling the aspirations of his people are truly remarkable,” he said.

Highlighting shared economic ambitions, Modi noted that trade between the two countries had grown even amid global challenges, with energy, agriculture and fertilizers as key sectors. He welcomed deeper integration of Saudi and Indian businesses, particularly in emerging sectors like green hydrogen and technology. “Indian companies have also maintained a strong presence across various sectors in Saudi Arabia,” he said.

Modi congratulated the Kingdom for winning the bids to host World Expo 2030 and FIFA World Cup 2034, describing the dual successes as a matter of “immense pride.” He also pointed to growing defense cooperation and landmark joint military exercises as signs of increasing strategic trust.

On the India-Middle East-Europe Economic Corridor (IMEEC), launched during the G20 Summit in September 2023, Modi said the project would be “a key catalyst of commerce, connectivity and growth in the entire region.”

In a statement, the Indian government said the visit “reflects the importance India attaches to its bilateral relationship with the Kingdom of Saudi Arabia.”

Q. Saudi-India ties are on an upswing. How do you assess the progress made in the strengthening of bilateral relations since the establishment of the Strategic Partnership Council in 2019?

A. First of all, I want to thank His Royal Highness Prince Mohammed bin Salman for his kind invitation. I am delighted to be here on my third visit. I take great pride in our relations with Saudi Arabia. The Kingdom of Saudi Arabia is one of India’s most valued partners — a maritime neighbor, a trusted friend and a strategic ally.

Our connection is not new. It is rooted in civilizational exchanges that go back to centuries. From ideas to trade, there has been a constant flow between our two great nations.

Our relations have been on an upward trajectory since 2014. I fondly recall that in 2016, I had the honor of receiving The Order of King Abdulaziz from His Majesty King Salman.

The formation of the Strategic Partnership Council in 2019 marked a major milestone. Since then, cooperation between us has expanded across many sectors. And let me tell you, this is just the beginning. Our partnership has limitless potential.

What anchors our relationship is mutual trust and goodwill. In a world full of uncertainties, our bond stands strong, as a pillar of stability. I truly believe these are promising times for India-Saudi Arabia ties. And, I must say, the Saudi leadership has played a vital role in strengthening this partnership.

India and Saudi Arabia will keep moving forward together — for peace, progress and prosperity, not just for our people, but for the entire world.

Q. Given your previous seven meetings with Crown Prince and Prime Minister Mohammed bin Salman, how would you characterize the personal rapport between the leadership of both countries? Has his rapport influenced the bilateral relationship in any way?

A. Every time I have met him, His Royal Highness has left a deep impression on me. His insights, his forward-thinking vision, and his passion for fulfilling the aspirations of his people are truly remarkable.

Under his leadership, Saudi Arabia has undergone tremendous social and economic transformation. The reforms he has undertaken have not just inspired the region, but also caught the attention of the entire world. One can see the transformational changes in the country under Vision 2030 in a very short period.

I value the personal warmth and trust we share. And, yes, this personal rapport has naturally translated into how both countries give priority to our partnership. He is a strong advocate of our bilateral ties. He has been a great supporter of the Indian diaspora in Saudi Arabia and our people living in Saudi Arabia deeply admire him.

When we talk, we focus on making this partnership future-ready. Jeddah has had a special connection with India. For centuries, this famed city has been one of the principal arteries for our trade and people-to-people exchanges. As a gateway to Makkah, for ages, our pilgrims have walked the by-lanes of Jeddah on their holy journey for Hajj and Umrah.

Q. Saudi Arabia is India’s fifth-largest trading partner. What initiatives are being considered to further diversify and expand this economic partnership so that both countries can better face challenges together?

A. Our economic ties are as old as the monsoon winds. Given the proximity of our nations and the complementarity of our economies, there is a natural connect. That is why even during global challenges, our trade ties have not just survived, but they have grown.

While sectors like energy, agriculture and fertilizers are the main areas of our trade, efforts at diversification have borne fruits. Indian businesses and Saudi industry are building stronger connections.

Building stronger connect between our businesses and industry and enhancing investment partnership is adding resilience to this relationship. Saudi Arabia is a leading energy partner for India. Likewise, India is contributing to food security in Saudi Arabia. I am told people in Saudi Arabia prefer Indian rice! India too loves Saudi dates.

I also see several complementarities between Saudi Vision 2030 and India’s Viksit Bharat 2047 (Developed India 2047 initiative).

Bilateral investments between our countries have also been increasing. Today, the Indian growth story offers immense opportunities for Saudi majors to invest and partner, from space economy to global supply chain collaborations.

Indian companies have also maintained a strong presence across various sectors in Saudi Arabia. They are playing a crucial role in the realization of Saudi Vision 2030.

Our goal is to enhance this connect.

India and Saudi Arabia are working on a Bilateral Investment Treaty. The proposed Free Trade Agreement between India and GCC has immense potential to transform the economic relationship between India and Saudi Arabia, and the region in general.

Q. With Saudi Arabia’s Vision 2030 emphasizing infrastructure development, what opportunities do you see for Indian companies to contribute to and benefit from these projects, including Riyadh Expo 2030 and Saudi FIFA World Cup 2034?

A. As a close friend, India rejoices in Saudi Arabia’s stellar achievements. I would like to congratulate the people of Saudi Arabia and its leadership for being chosen as the host for World Expo in 2030 and FIFA World Cup in 2034.

It is a matter of immense pride for any country to host two marquee global events within a span of four years. It speaks volumes of the leadership of His Royal Highness and his vision.

These mega events will boost the local economy. They offer opportunities for Indian companies as well. Our companies, as you are aware, have built a global reputation for their quality, competitiveness and efficiency.

I understand that the Indian companies already have a strong participation in Saudi infrastructure and technology sectors. They are also creating value in various mega and giga projects as part of Saudi Arabia’s Vision 2030.

I also invite Saudi companies to take advantage of the remarkable opportunities in India as part of our Viksit Bharat journey. They can participate in the growth of India’s next-generation infrastructure, logistics, renewable energy, healthcare, utilities, innovation, start-ups and “blue economy” sectors.

Deeper engagements and two-way collaborations between companies of both countries will go a long way in strengthening the bilateral economic partnership.

Q: Given Saudi Arabia’s role as a key supplier of crude oil and petroleum products to India, how do you envision the future of energy collaboration between the two nations, especially in the context of global energy transitions?

A. Energy has been an important pillar of our economic partnership. Saudi Arabia has been a strong and reliable energy partner for us. It is one of our top suppliers of crude and other petroleum products. As India seeks to become a developed country, our energy demands will continue to grow. And Saudi Arabia will remain a close partner in our energy security. As strategic partners we agree that our energy cooperation is not limited to mere buyer-seller relationships. We are also exploring joint projects in refineries and petrochemicals.

The world is also witnessing a gradual shift toward cleaner and more sustainable energy resources. India is moving ahead with an ambitious target for green transition. We are confident of achieving 500 GW renewable energy target by 2030.

Even in this journey, there is an immense scope of collaboration with Saudi Arabia. This includes the areas of supply chains, circular economy, energy efficiency and green hydrogen. As partners in the International Solar Alliance, both countries can work toward innovative solutions for future energy needs.

During the New Delhi G20 Summit in 2023, along with His Royal Highness, we launched the India-Middle East-Europe Economic Corridor (IMEEC) initiative. We are now working on feasibility studies for electricity grid interconnectivity between India and Saudi Arabia and the wider region. As you can see, we are moving ahead with the vision of a comprehensive energy partnership between our two countries.

Q. Saudi-India defense engagements and joint exercises have been steadily increasing. What are the key areas of focus for defense and security cooperation in the coming years?

A. We consider Saudi Arabia as a force of positivity and stability in the region. As maritime neighbors, India and Saudi Arabia share a natural interest in safeguarding peace and stability in the region.

The growing defense and security engagement and collaboration between the two countries is a reflection of deep mutual trust. It is also a testament to our shared commitment to regional stability, and our mutual resolve to address the evolving challenges in our extended neighborhood.

We have seen steady progress in security cooperation. This includes areas such as counterterrorism, combating extremism, disrupting terror financing and tackling drug trafficking. We are also exploring new frontiers of cooperation in cybersecurity, recognizing its growing importance in today’s interconnected world.

Last year, we achieved an important milestone: the first-ever joint exercises between the two land forces. These were complemented by two successful rounds of the joint naval exercise Al-Mohed Al-Hindi, which were held in 2021 and 2023.

Both of us support deeper defense-industry collaboration. Over the past decade, defense manufacturing has taken deeper roots in India. Today, there is a strong military industrial complex with the ability to manufacture quality ammunition, small arms, tanks, armored carriers. For the air force, we are building drones, advanced light helicopters and fighter jets. For the navy, we have the capacity to build patrol boats, submarines, and even aircraft carriers.

We are not just fulfilling our own needs. India has also emerged as an important supplier of defense equipment to more than 100 countries around the world.

I am glad that we have been able to meet some needs of the armed forces in Saudi Arabia. We support deeper engagement between private-sector players from both countries. We would welcome Saudi investment into the defense manufacturing sector in India that has been opened for private investment.

Q. The IMEEC initiative that was announced in September 2023 in New Delhi is an ambitious project to connect India and Europe through the Middle East. What are the key elements of IMEEC, and how is India working with Saudi Arabia to achieve the goals envisioned under this initiative?

A. India and Saudi Arabia, along with European Union, the UAE, France, Germany, Italy and the US, jointly launched the India Middle East Europe Corridor initiative in New Delhi in September 2023.

This corridor will define the future of connectivity in all forms for centuries to come. It will become the key catalyst of commerce, connectivity and growth in the entire region. The corridor will enhance connectivity in all its forms, be it physical or digital.

It will facilitate development of resilient and dependable supply chains, increase trade accessibility and improve trade facilitation. The corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs and lower greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East.

Both India and Saudi Arabia have a key role to play in the success of this corridor. We are committed to working with our Saudi partners to realize the vision of connectivity, including multi-modal logistic connectivity, data connectivity and electrical grid connectivity. We are working on clean and green hydrogen and related supply chains under this initiative.

I visualize this initiative has a transformational potential for humanity. It can be the new Silk Route of the 21st century that will bring benefit to the generations to come.

Q. The Indian community of 2.7 million in Saudi Arabia has been praised by you as a binding force in bilateral ties. How does your government plan to further support and engage with the Indian diaspora in the Kingdom?

A. First of all, let me put it on record that we are deeply grateful to Their Royal Highnesses, King Salman and Crown Prince Mohammed bin Salman, for the patronage they have provided to the Indian community in Saudi Arabia. We can never forget how they took care of the Indians as one of their own during the difficult times of the COVID pandemic.

Indians have a very important character — whichever country they go, they make it their home. They are law abiding, dedicated and professional to the core. They carry with them the values of empathy, compassion and care.

This very nature earns them respect of their host country. Saudi Arabia is no exception. Whenever I have met His Royal Highness Crown Prince Mohammed bin Salman, he has praised the Indian community and appreciated their significant contribution to the economic growth of the Kingdom. He has even said that they are part of the Saudi family. These words of praise always fill my heart with pride and joy.

For my government, the members of the Indian diaspora are the “rashtradoots” (national ambassadors). The 4Cs — Care, Connect, Celebrate and Contribute — is the motto of our engagement with our diaspora. Their safety, welfare and well-being is paramount for us.

Over the past decade we have launched many initiatives, including insurance schemes, scholarships for their children, and skilling programs. We have established mechanisms for safe and legal migration. The 2.7 million vibrant Indian community in Saudi Arabia is a living bridge connecting our two countries. I commend them for not only preserving their values and traditions, but also promoting them.

I eagerly look forward to reconnecting with the Indian diaspora during this visit.

Q: How do you see religious tourism, cultural and educational exchanges developing as a component of Saudi-India bilateral relations? Do you foresee India’s IITs and IIMs opening campuses in Saudi Arabia, along the lines of IIT Delhi, Abu Dhabi campus?

A. Our people have interacted with each other since the days of “Kalila wa Dimna.” The growing cultural connect between our countries is indicative of the understanding and appreciation for each other.

As far as religious tourism is concerned, as you know we have a large Muslim population and they visit your beautiful country each year for Umrah and Hajj pilgrimage. We are grateful to the Saudi leadership for the continued assistance provided to Indian pilgrims. Yoga has gained considerable popularity in Saudi Arabia over the recent years, thanks to the encouragement and support of the Saudi government. We are also noticing a growing interest in cricket.

I am told that Arab broadcasters run dedicated channels with Indian content that are very popular in the Kingdom. There is also a wide following for Indian films and actors. India is hosting the first edition of the World Audio Visual and Entertainment Summit in Mumbai during May 1-4. We look forward to a strong participation from Saudi Arabia at the summit so that we can give new wings to our cultural and entertainment collaboration.

Educational cooperation is another promising area. Indian higher education institutions are recognized globally. They are ready to take up opportunities, as and when those arise in Saudi Arabia as well.

Finally, let me congratulate Arab News as it completes 50 years of its publication this year. I know Arab News has a special connection with Indians living in the Kingdom. Your media outlet is a strong symbol of our people-to-people ties. My best wishes to you as you continue to nourish India-Saudi Arabia friendship.

Following is the clipping of the interview:

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Source: ARAB NEWS

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ਮੁਦਰਾ ਐੱਨਪੀਏ ਰੇਟ ਦੁਨੀਆ ਵਿੱਚ ਸਭ ਤੋਂ ਘੱਟ: ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਮੋਦੀ
April 08, 2025

Prime Minister Narendra Modi launched the Pradhan Mantri MUDRA Yojana (PMMY) in 2015 to provide low-cost credit to microfinance and non-banking financial institutions in order to lend to micro, small and medium enterprises and generate jobs and incomes in manufacturing, services, retail, agriculture and allied activities.

The Micro Units Development & Refinance Agency (MUDRA) was established as part of the exercise. Now in its 10th year, the scheme has allowed the government to fund the unfunded, PM Modi said in a written interview to ET on the scheme. Edited excerpts:

What were your expectations from the MUDRA Yojana and has it achieved them?

The MUDRA Yojana needs to be seen in a particular context and not as a standalone scheme. Even before I held any government position, I had travelled extensively across the country for many decades as a karyakarta. There was a common theme that I saw everywhere. A vast majority of our population, such as the poor, farmers, women and marginalised sections had aspirations for growth, strong spirit of enterprise, energy and resilience-all qualities needed to be a successful entrepreneur. But these were the very sections that had been completely excluded from the formal banking and financial system.Tell me, if you do not have a bank account, will you ever visit a bank? When people did not even have access to basic banking, funding for entrepreneurship looked like a distant dream.So, when the people voted for us in 2014, we decided to make the whole financial architecture people-centric and inclusive, so that we could give wings to their aspirations. We democratised the financial system.This started with 'banking the unbanked' with Jan Dhan Yojana. Once those who were left out and left behind began to become part of the formal financial system through this scheme, we went on to 'funding the unfunded' through the MUDRA Yojana and 'insuring the uninsured' through the Jan Suraksha portfolio of schemes.So, MUDRA is part of a larger vision to ensure that the entrepreneurial ability, innovation, creativity and self-reliance of the people at the grassroots is respected, celebrated and supported.Through the MUDRA Yojana, we wanted to give a message to every Indian, that we had trust in their abilities and we would stand as a guarantee in their journey to fulfil their aspirations. Trust begets trust. The people too responded with great zeal and today, with over 52 crore loans given worth ₹33 lakh crore, they have made MUDRA a massive success.

One of the concerns over the scheme has been high NPAs and consequently the underwriting burden on the government. Do these need to be addressed or would you say this is a justified cost for the impact the scheme has had?

There are two perspectives on the problem of NPAs. On the one hand, we have experience from the tenure of the Congress-led United Progressive Alliance. Then, the banking sector operated under a system that came to be known as 'phone banking'.Loans were sanctioned based on calls from political connections rather than on competence, or adherence to strict financial due diligence.We all know how this created the twin balance sheet problem. This period, marked by a lack of transparency and accountability, left public sector banks grappling with a legacy of stressed assets, undermining their ability to support broader economic growth.On the other hand, we lent money to the poor and the middle class through the MUDRA Yojana. It was designed to empower small and medium entrepreneurs who had no connections but had competence and conviction.Unlike the UPA's top-heavy lending model, MUDRA focused on grassroots economic activity. Today, with more than 52 crore loan accounts, MUDRA reflects the massive scale and ambition we had.When we launched this initiative, several prominent Congress leaders and commentators from their ecosystem said that extending credit to crores of small-scale borrowers will cause an NPA issue. They had no trust in the poor and middle class of our country. But the outcomes have defied these predictions.What stands out is the performance of these loans-just 3.5% have turned into NPAs. This is an exceptionally low default rate in this segment world over.While the UPA's phone banking era left banks burdened with toxic assets and favoured select elites of those who were close to power centres, MUDRA has redirected resources to the grassroots, fostering entrepreneurship without compromising financial stability.

The banking sector is in sound health today. Do you think it can take on more risks and fund those lacking formal credit access through schemes such as MUDRA, while corporate borrowers access funds through the bond market?

Due to our relentless banking reforms and deft handling of the NPA crisis, today, our banks are in good health again. Many of them have touched record profits.Over the last decade, programmes such as MUDRA, PM-Svanidhi and Standup India have benefited from the improving health of our banks. Further, due to these schemes, our banking system has also become more responsive towards the needs of small entrepreneurs. As a result, the poor and middle class have reduced their reliance on informal lending to a great extent.I am confident that our banking sector will continue to be a strong partner in the journey of ensuring financial inclusion and supporting entrepreneurship at the grassroots.When it comes to the question of funding small entrepreneurs or corporate borrowers, our banks are capable of supporting both segments and it is not a zero-sum game.This year our corporates raised more than ₹1 trillion through the bond market. This will continue to grow as bond markets are also maturing. Similarly, the MSMEs have started raising money through IPOs and people are appreciating that too. Indian banks will maintain an equilibrium when it comes to priority sector lending as well as corporate lending. This balanced strategy strengthens both financial stability and equitable growth, setting a sustainable path forward as the system continues to mature.

The scheme especially focused on the deprived and women.

Reaching out to the deprived has been the hallmark of this scheme. Vanchit ko variyata, mainstreaming the marginalised-this has been our motto.For decades, affordable credit used to be available only to the rich and well-connected. Unfortunately, the entrepreneurship efforts of the deprived were often trapped in the Chakravyuh of high compounding interest rates. Through MUDRA Yojana, even the deprived are able to get a loan without any collateral.So when we celebrate the success of MUDRA Yojana in promoting entrepreneurship, the heartening aspect is that a large number of these success stories are from women and deprived groups.With over 52 crore loans sanctioned, it has proved to be a lifeline for small and micro businesses in the non-corporate, non-farm sector-areas where SC, ST communities and women often operate. Half of all the loans have gone to people belonging to SC, ST, OBC communities. Nearly 70% of these loans went to women, which shows it's hitting the mark on women's empowerment and financial inclusion.For someone from a deprived background or a woman with a business idea-like a small shop or manufacturing unit such as MSME setup-this scheme has offered real support to turn dreams into reality. This is more than just an entrepreneurship opportunity for the deprived population but it is an inflection point in their lives where their conviction and ideas win over all kinds of doubts and challenges, with the government standing as the guarantor for their loans.

One of the goals of MUDRA was encouraging entrepreneurship and creating employment, especially in rural areas to discourage migration.

The MUDRA Yojana has brought about a fundamental mindset shift in society today. Entrepreneurship, which was considered somewhat of an elite endeavour, has now been democratised.Today, entry barriers to entrepreneurship, actual and perceived, have been reduced significantly and the MUDRA Yojana has been the force behind this change.Today, every layer of our society is thinking of entrepreneurship and growth. Small ideas are blossoming into MSMEs, MSMEs into successful startups and startups into unicorns.Out of the 52 crore loans given under MUDRA, over 10.6 crore have gone to first-time entrepreneurs! You have to understand that there are successful entrepreneurs who have been empowered by MUDRA Yojana in every part of the country, which means there is success in every part of the country.These new entrepreneurs have set off localised growth cycles. These new entrepreneurs are hiring more people, building bigger offices, supporting and collaborating with other businesses at a local level.Today, many youths in tier 2 or tier 3 cities prefer staying close to home rather than moving to metro cities. Low cost of housing, good education, ease of travel, ease of communication and increased avenues for entrepreneurship offer them a lucrative deal.The value addition of these entrepreneurs is being witnessed in our national growth.

How has the scheme evolved over the last decade and what next?

Let us look at the scale of the loans and the amount disbursed under the MUDRA Yojana. Over 52 crore loans worth ₹33 lakh crore have been disbursed.This means 1.6 loans have been given every second, which is faster than even a heartbeat. The total amount sanctioned is higher than the GDP of 100 countries.To give you an idea of how the scheme has progressed, an analysis of the total loans sanctioned/disbursed under the scheme shows that since its launch, the average ticket size of the loans has nearly tripled-from ₹39,000 in FY16 to ₹73,000 in FY23 to ₹1.05 lakh in FY25.In this year's budget, we have raised the upper threshold for loans to ₹20 lakh.Around MUDRA, we have worked on enhancing our digital public infrastructure as well. Beyond JAM and digital payments, we have the account aggregator (AA) framework that ensures paperless loans for everyone. With loans and ease of credit, we wanted to ensure ease of doing business online in a digital world, and therefore, we have the Open Network for Digital Commerce (ONDC). Think of it as UPI for online commerce, where entrepreneurs, especially the ones in second-tier towns and villages, will no longer be dependent on big platforms who they are compelled to share their profits with.The future of MUDRA is already before us with the AA framework and ONDC, and the first-time bank account holders a decade ago are now evolving with the economy, creating a rich credit history, which will tomorrow be beneficial for them in further expanding their business operations.

He regarded the India-led green initiatives as platforms for all nations to collectively address climate change, promote environmental sustainability, build disaster resilient infrastructure, and drive the global transition towards clean energy.

Source: The Economic Times