The India Oman trade pact marks a major step in New Delhi’s Gulf strategy as Prime Minister Narendra Modi’s Muscat visit delivers a breakthrough in trade, investment, and strategic cooperation. Visiting Muscat to strengthen diplomatic relations, PM Modi met with leaders of Oman to discuss mutual interests and cooperation throughout the region. The welcoming reception Modi received from senior officials in Oman demonstrated the positive continuation of diplomacy between the two nations.
Detailed discussions took place between PM Modi and Sultan Haitham bin Tarik on the key areas of Trade, Investment, Energy, and Strategic Cooperation, which involved delegations from both nations participating during the Meeting. In addition, PM Modi spoke at the Oman-India Business Forum in Muscat, where he spoke about the economic development opportunities available to both nations through their economic collaboration, and then met with members of the Indian Diaspora based in Oman. In addition, the successful visit highlighted the significance of Oman as an important partner in India’s plan for the Gulf region. The officials emphasized that this engagement represented both timely and future-focused.
India Oman trade pact reshapes economic cooperation
During the visit, India and Oman signed an all-encompassing Economic Partnership Agreement, with the objective of improving the volume of bilateral trade and investment. Oman provided zero-duties to Indian exporters to access the vast majority of tariff line items, which include Indian exports such as Textiles, Pharmaceuticals, Automobiles, and Precious stones/Jewellery. India agreed to reduce the Tariffs on 78 percent of Tariff Lines. The total of these concessions represents approximately 95 percent of the imports of Oman. The total value of bilateral trade between these two Countries already exceeds 10 billion US Dollars per year. The agreement becomes India’s second major trade pact this year. Modi said, “This (pact) will set a new pace for our trade, add new trust to our investments and open doors to new opportunities in many sectors.” Officials see the deal as a diversification push amid high United States tariffs.
Strategic context and sectoral impact
Oman’s significant geographic position along the Strait of Hormuz greatly impacts the shipment of global oil as well as stability within the region. Analysts state that this agreement will enhance India’s presence in the region beyond simply tariffs. Ajay Srivastava believes that this agreement unifies trade priorities with regard to the shifting state of geopolitics. The agreement may significantly increase exports of gems/jewellery; while industry representatives estimate exports from $35 million, they expect near $150 million total export values within three years. While not all items were included in this agreement (i.e., dairy products and tobacco), it provides access to Oman’s $12.5 billion market for services. After the visit, Modi was given a prestigious civilian award by Oman and a renewed commitment to develop a long-term strategic partnership.
For more- https://civiclens.in/category/national-news-civiclens-in/
About the Author
1 thought on “India oman trade pact marks strategic breakthrough in west asia”