Finance
India and Oman will sign a trade agreement in the coming months, according to two Indian government sources, as New Delhi looks to strengthen its connections in the Middle East, where escalating tensions threaten important maritime routes.
“It will help India with a strategic partner and access to key trade routes in a volatile region,” one official told Reuters.
India and Oman have annual trade of less than $13 billion, but the relationship is important for New Delhi as the Gulf nation is a gateway to the narrow Strait of Hormuz between Oman and Iran, a major transit point for global oil shipments.
Israel’s war against Hamas in Gaza has escalated into confrontations with Iran, and Yemen’s Iran-aligned Houthi insurgents have conducted numerous drone and missile strikes in the Red Sea region, claiming support with Palestinians in Gaza.
The trade agreement requires ratification from the government that wins India’s ongoing national elections, the results of which will be announced on June 4, according to officials. Prime Minister Narendra Modi is set to win a rare third term.
The officials begged not to be named since the meetings were secret.
The Indian trade and foreign ministries, as well as Oman’s embassy in India and foreign ministry, did not respond to emails requesting comment.
After making little headway on an agreement with the Gulf Cooperation Council (GCC), India has shifted its focus to bilateral accords with GCC member nations such as Oman and the UAE.
The anticipated pact with Oman “also gives a competitive edge as GCC is negotiating trade agreements with Pakistan and China,” the official stated.
Oman has agreed to reduce taxes on Indian exports worth $3 billion per year, including agricultural items, gems and jewellery, leather, vehicles, medical gadgets, technical products, and textiles, according to officials.
According to officials, India has agreed to lower levies on some petrochemicals, aluminum, and copper from Oman while capping imports of these items.
Source:IE
