Bilateral trade between India and Saudi Arabia is expected to double and touch $7 billion by 2010 from the current level of $3 billion, industry chamber Assocham said.
India's current exports to Saudi Arabia stand at $1.3 billion, while imports are in the range of $1.2 billion, the 'Indo-Saudi Arabia Trade Prospects,' a paper prepared by Assocham said.
The paper also predicts that the demand for Indian textile in Saudi Arabia will increase due to their prices and smooth export transactions provided by the oil-rich country.
The major Indian exports include basmati and non-basmati rice, readymade garments and machinery, while the imports include organic and inorganic chemicals, metal scrap, leather and gold.
The paper adds that Saudi Arabia will also start import of communication devices, blankets, furniture, sanitary equipment, construction materials, car spare parts, medical equipment, cars, trucks and agriculture products.
Also the bilateral investments between the two countries will also grow as already many Indian firms in areas like designing, consultancy, financial services and software development, have established joint ventures of wholly owned subsidiaries in the kingdom.
India should also offer sops in terms of tariff relations and simplification of procedures to the Saudi Arabian firms to increase the flow of investment in India.