News Brief
India Set To Sign Strategically Significant Trade Deal With Oman: All You Need To Know About It
Indian exports (Representative image) (GettyImages)
India and Oman are reportedly set to sign a trade deal in the upcoming months.
This move comes as New Delhi aims to strengthen its relations in the Middle East, especially amid escalating tensions that pose risks to vital shipping lanes.
Highlighting the significance of the agreement, a government official was quoted by Reuters as saying, "It will help India with a strategic partner and access to key trade routes in a volatile region."
Currently, the annual trade between India and Oman stands at under $13 billion.
However, for India, the relationship holds strategic importance as Oman serves as a crucial gateway to the narrow Strait of Hormuz, a critical transit point for global oil shipments situated between Oman and Iran.
Recent developments in the region, including Israel's conflict with Hamas in Gaza and Yemen's Houthi militants' actions in the Red Sea area, have underscored the region's volatility.
The trade deal is contingent upon the approval of the upcoming government in India after the ongoing national elections, with results of the polls on 4 June.
Amidst limited progress on a broader deal with the Gulf Cooperation Council (GCC), India has shifted its focus towards bilateral agreements with individual GCC member states such as Oman and the United Arab Emirates.
Regarding the planned deal with Oman, the official mentioned that it also provides a competitive advantage as the GCC is engaged in trade negotiations with Pakistan and China.
Under the terms of the agreement, Oman has agreed to waive duties on Indian exports valued at around $3 billion annually, covering various sectors including agriculture, gems and jewellery, leather, automobiles, medical devices, engineering products, and textiles.
In return, India has agreed to lower duties on certain petrochemicals, aluminium, and copper from Oman, while also imposing import caps on these goods.
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