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India is set to sign a trade d...


India is set to sign a trade deal with Oman

India is set to sign a trade deal with Oman
The Silicon Review
27 April, 2024

India and Oman will sign a trade deal in the coming months, as confirmed by two Indian government officials. New Delhi is aiming to enhance its relations in the Middle East.

An official told Reuters that this alliance would benefit India by providing a strategic ally and access to crucial commercial routes in a challenging region. Commerce between India and Oman is not very big - less than $13 billion. However, it is important for India because Oman provides a way to the narrow Strait of Hormuz, which is an important route for oil exports worldwide.

Houthi militants from Yemen, who support Iran, have launched many drone and missile attacks in the Red Sea area, in support of the Palestinians in Gaza. Israel's war against Hamas in Gaza has escalated to hostilities with Iran.

Officials say the winning administration in India's upcoming national elections on June 4 must approve the trade agreement. Most people predict that Prime Minister Narendra Modi will be elected to an unusual third term. The officials requested anonymity since the conversations are confidential.

I didn't receive replies from the foreign and trade ministries of India or the embassy of Oman in India. India is now focusing on making agreements with individual members of the Gulf Cooperation Council (GCC), such as the United Arab Emirates and Oman, instead of pursuing a deal with the GCC as a whole. The GCC is currently in talks with China and Pakistan for trade deals. This agreement is expected to give GCC an advantage, along with the anticipated deal with Oman.

The authorities stated that Oman has decided to remove tariffs on $3 billion worth of Indian exports, which include textiles, vehicles, medical devices, jewelry, leather goods, agricultural products, and engineering products. India has agreed to reduce tariffs on petrochemicals, aluminum, and copper from Oman, as long as the import of these goods is limited.