India and Oman on the Verge of Trade Deal, Boosting Economic Ties in Gulf Region
India and Oman are reportedly close to finalizing talks on a comprehensive economic partnership agreement, aiming to facilitate easier access to goods and services in each other's markets. Officials familiar with the matter revealed that consensus has been reached on a majority of issues, with the discussions likely to conclude soon, possibly resulting in a finalized deal as early as March.
Oman's strategic location along the Strait of Hormuz, a crucial oil transit chokepoint, makes it significant for India. Additionally, Oman hosts the fifth-largest population of Indian expatriates working overseas. New Delhi seeks reduced tariffs on exports to Oman, covering a range of products such as rice, pharmaceuticals, petroleum, and steel. The negotiations also involve efforts to ease access for Indian professionals, including doctors, nurses, engineers, and other skilled workers.
On the other side, Oman is aiming for improved access to Indian markets for goods like downstream petroleum products, fertilizer, iron, and steel products. The talks, initiated just three months ago, demonstrate Prime Minister Narendra Modi's commitment to strengthening ties with the Middle East. India has already signed a free trade agreement with the United Arab Emirates and is actively engaged in trade discussions with the Gulf Cooperation Council countries.
Oman ranks as India's third-largest trade partner within the Gulf Cooperation Council nations, with two-way trade reaching $12.38 billion in the fiscal year 2022-23. Sultan Haitham bin Tarik's historic visit to India in December marked the first by an Omani ruler in over two decades. Following the visit, Oman allocated an exclusive zone at the Dqum port to New Delhi for commercial cargo and warship docking.
This move aligns with Modi's government's broader efforts to expedite trade talks with major partners, including the United Kingdom, the European Union, and the European Free Trade Association. The latter comprises Switzerland, Norway, Iceland, and Liechtenstein.
