India-Oman trade deal aimed at facilitating smoother access for goods and services between the two nations, is on the brink of finalization. Officials familiar with the matter have indicated significant progress, indicating that a majority of the issues have been resolved. This potential agreement is expected to bolster India’s presence in the Gulf region, underscoring the strengthening ties between the two countries. As negotiations near completion, the trade deal signifies a strategic move to enhance economic cooperation and deepen bilateral relations between India and Oman.
India-Oman Trade Deal
According to undisclosed sources, India and Oman have largely agreed on key issues within the comprehensive economic partnership agreement. The discussions, although private, suggest that the negotiations are close to completion, with a potential finalization anticipated as early as March. Oman’s strategic location near the Strait of Hormuz, a critical oil transit point, renders it significant to India despite its smaller economy. With the fifth-largest population of Indian expatriates working overseas, Oman plays a vital role in India’s regional interests and economic relations.
India-Oman Trade Negotiations
In ongoing discussions, New Delhi is pushing for a reduction in tariffs on exports destined for Oman. These exports cover a diverse range of products, including rice, pharmaceuticals, petroleum, and steel items. The negotiation agenda also includes facilitating the entry of Indian professionals, such as doctors, nurses, engineers, and other skilled workers, into Oman’s market.
Conversely, Oman is keen on securing better access to various goods from India. This includes downstream petroleum products, fertilizer, and iron and steel products, among others. Both sides are engaged in dialogue to address these trade interests and foster mutually beneficial trade relations between India and Oman.
Despite an unanswered email to India’s trade ministry and unavailability of Omani government officials for comments, the swift pace in finalizing the trade pact between India and Oman, initiated just three months ago, underscores Prime Minister Narendra Modi’s determination to fortify ties with the Middle East. India’s proactive engagement, including the signing of a free trade agreement with the United Arab Emirates and ongoing discussions with the Gulf Cooperation Countries, signals its strategic intent to deepen trade relations in the region. This rapid advancement reflects India’s proactive stance in fostering robust economic partnerships and capitalizing on growth opportunities in the Middle East.
India’s Growing Trade Relations with Oman
Oman stands as India’s third-largest trade partner among the GCC nations. In the fiscal year 2022-23, bilateral trade between India and Oman amounted to $12.38 billion, as reported by India’s trade ministry.
In a significant move, Sultan Haitham bin Tarik marked the first Omani ruler to visit India in over two decades in December. Following the visit, Oman granted New Delhi an exclusive zone at the strategically positioned Dqum port. This zone is designated for India’s commercial cargo and for the docking of warships, highlighting the strengthening ties between the two nations.
Under Prime Minister Modi’s leadership, India’s government has accelerated trade discussions with several key trading partners, including the UK, European Union, and the European Free Trade Association (which includes Switzerland, Norway, Iceland, and Liechtenstein). This proactive approach reflects India’s commitment to enhancing trade relations and exploring new opportunities for economic cooperation on the global stage.
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