Prime Minister Narendra Modi and Sultan of Oman Haitham Bin Tariq hold bilateral talks at Hyderabad House in Fresh Delhi. | Photo source: ANI
India and Oman will sign a trade deal in the coming months, two Indian government officials said, as Fresh Delhi seeks to expand its ties in the Middle East, where rising tensions threaten major shipping routes.
“It will support India gain a strategic partner and access key trade routes in a volatile region,” one official told Reuters.
India and Oman’s annual trade is less than $13 billion, but the relationship is significant to Fresh Delhi because the Gulf country is the gateway to the narrow Strait of Hormuz between Oman and Iran, a major transit point for global oil supplies.
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Israel’s war against Hamas in Gaza has escalated into hostilities with Iran, and Houthi fighters in Yemen, allied with Iran, have carried out repeated drone and missile attacks in the Red Sea area, expressing solidarity with Palestinians in Gaza.
Officials said the trade deal requires the approval of the government that wins India’s ongoing national elections, the results of which are scheduled to be announced on June 4. Prime Minister Narendra Modi is widely expected to win a uncommon third term.
The officials asked not to be identified because the conversations are private.
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India’s Ministry of Commerce and External Affairs and the Omani Embassy in India and Ministry of External Affairs did not respond to emails seeking comment.
Having made little progress in the Gulf Cooperation Council (GCC) agreement, India has moved towards seeking bilateral arrangements with GCC member countries such as Oman and the United Arab Emirates.
The planned deal with Oman “also provides a competitive advantage as the GCC negotiates trade deals with Pakistan and China,” the official said.
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Oman has agreed to eliminate tariffs on Indian exports worth $3 billion a year, including agricultural products, gems and jewelry, leather, cars, medical devices, engineering products and textiles, officials said
India has agreed to cut tariffs on some petrochemicals, aluminum and copper from Oman while restricting imports of such goods, officials said.
