India and Oman are on the brink of sealing a comprehensive economic partnership agreement aimed at bolstering trade and commerce between the two nations.
Sources familiar with the negotiations have indicated that both parties have made significant strides towards reaching a consensus on various key issues, with talks expected to conclude imminently, in a finalized deal as early as March.
Oman's strategic location along the Strait of Hormuz, a crucial conduit for global oil transportation, adds to the significance of the potential partnership for India.
Oman is home to the fifth-largest population of Indian expatriates globally, underlining the deep-rooted ties between the two nations.
From India's perspective, the focus lies on securing reduced tariffs on exports to Oman, spanning an array of sectors including rice, pharmaceuticals, petroleum, and steel. Additionally, India aims to facilitate easier access for its professionals, including doctors, nurses, engineers, and other skilled workers, into the Omani market. Conversely, Oman is seeking enhanced access to Indian markets, particularly for commodities such as downstream petroleum products, fertilizer, iron, and steel products.
These negotiations, initiated just three months ago, highights Prime Minister Narendra Modi's commitment to fortifying India's relations with the Middle East region.
India's proactive engagement with the Gulf Cooperation Council (GCC) nations is evident, with the country having already inked a free trade agreement with the United Arab Emirates and actively pursuing similar arrangements with other GCC members.
Oman stands as India's third-largest trade partner within the GCC bloc, with bilateral trade amounting to $12.38 billion during the fiscal year 2022-23.
Sultan Haitham bin Tarik's landmark visit to India in December was the first visit by an Omani ruler in over two decades. Subsequent to this visit, Oman allocated an exclusive zone at the Dqum port to India for both commercial cargo and warship docking, highlighting the deepening economic and strategic ties between the two nations.
Apart from Oman, India is actively engaged in discussions with other major partners including the United Kingdom, the European Union, and the European Free Trade Association, comprising Switzerland, Norway, Iceland, and Liechtenstein.
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