India and Oman are on the verge of finalizing a trade deal that will facilitate smoother trade and market access between the two nations, according to officials familiar with the matter. The comprehensive economic partnership agreement, which covers a wide range of issues, is expected to be concluded soon, further strengthening India's presence in the Gulf region.

Strengthening Economic Ties

The negotiations between India and Oman aim to establish a trade framework that will enable easier access to goods and services in each other's markets. With a consensus reached on a majority of the issues, the trade deal is nearing its conclusion, with a potential finalization in March. This agreement holds significant importance for India, given Oman's strategic location in the region.

Unlocking Market Potential

India is seeking lower tariffs on a variety of exports to Oman, including rice, pharmaceuticals, petroleum, and steel products. The reduction in tariffs will enhance trade opportunities and boost India's export potential in the Omani market. Additionally, India is also aiming to facilitate the movement of professionals such as doctors, nurses, engineers, and other skilled workers to Oman, thereby expanding opportunities for Indian talent.

Addressing Oman's Interests

On the other hand, Oman is keen on gaining better access to Indian goods, particularly downstream petroleum products, fertilizers, and iron and steel products. By opening up avenues for Omani businesses to import these goods more easily, the trade deal will contribute to Oman's economic growth and diversification efforts.

Positive Implications for Both Nations

The conclusion of a trade deal between India and Oman will strengthen bilateral ties and foster greater economic cooperation. Oman's strategic location in the Gulf region, especially its proximity to the Strait of Hormuz, makes it a crucial partner for India in terms of trade and energy security. The trade agreement will enhance India's presence in the region and solidify its position as a reliable trade partner.

Building Stronger Relations

Prime Minister Narendra Modi's government has been proactive in expanding trade ties with global partners, including the United Kingdom, the European Union, and now Oman. The rapid progress in the trade negotiations demonstrates India's commitment to building stronger links with the Middle East. India has already signed a free trade agreement with the United Arab Emirates and is engaged in discussions with other Gulf Cooperation Council countries for similar trade deals.

Oman's Importance in India's Trade Landscape

Among the Gulf Cooperation Council nations, Oman holds significant importance for India as its third-largest trade partner. In the fiscal year 2022-23, bilateral trade between India and Oman stood at $12.38 billion. The trade deal will further facilitate the exchange of goods and services, providing a boost to economic growth for both nations.

Expanding Opportunities

The recent visit of Sultan Haitham bin Tarik, the Omani ruler, to India has further strengthened the bilateral relationship. As a result of the visit, Oman has allocated an exclusive zone at the strategically located Dqum port for India's commercial cargo and naval vessels. This move will enhance trade connectivity and provide a platform for increased collaboration between the two nations.

As India continues to expand its economic footprint in the Middle East, the trade deal with Oman sets the stage for deeper engagement and mutual growth.