The Aryavarth Express
(Agency) NEW DELHI – India is poised to enhance its Middle Eastern relations through a forthcoming trade agreement with Oman, disclosed by two Indian government officials. This strategic partnership aims to bolster India’s access to crucial trade routes amidst increasing regional volatility.
With an annual bilateral trade volume under $13 billion, Oman’s strategic location near the Strait of Hormuz—a critical channel for global oil transport—renders it a vital ally for India. This collaboration gains further importance against the backdrop of escalating conflicts in the region, including Israel’s ongoing conflict with Hamas and additional tensions involving Yemen’s Houthi militants.
The completion of this trade deal is contingent upon the approval of the government formed after India’s national elections, the results of which are expected on June 4. Current Prime Minister Narendra Modi is anticipated to secure a third term.
While efforts to secure a broader agreement with the Gulf Cooperation Council (GCC) have stalled, India has shifted its focus to bilateral agreements with individual GCC members like Oman and the UAE. This approach not only diversifies India’s economic partnerships but also strategically positions it amidst GCC’s ongoing trade discussions with Pakistan and China.
Under the proposed terms, Oman has committed to removing tariffs on Indian exports valued at approximately $3 billion annually. These exports include a variety of goods such as agricultural products, gems and jewellery, leather goods, automobiles, medical devices, engineering products, and textiles. Conversely, India will reduce tariffs on certain Omani exports like petrochemicals, aluminium, and copper, while imposing caps on the quantities of these imports.
This agreement is expected to provide significant economic benefits to both nations, reinforcing India’s presence in a strategically crucial region while enabling Oman to secure advantageous economic concessions.