New Delhi:
India and Oman will sign a trade deal in the coming months, two Indian government officials said, as New Delhi looks to expand ties with the Middle East, where rising tensions are endangering key shipping lanes.
“It will help India with a strategic partner and access to key trade routes in a volatile region,” an official told Reuters.
India and Oman have annual trade of less than $13 billion, but the relationship is important to New Delhi because the Gulf state is a gateway to the narrow Strait of Hormuz between Oman and Iran, a key transit point for global oil shipments.
Israel's war against Hamas in Gaza has expanded to hostilities with Iran, and Yemen's Iran-linked Houthi militants have repeatedly launched drone and missile attacks in the Red Sea region, claiming solidarity with Palestinians in Gaza.
The trade deal requires the approval of the government that wins India's ongoing national elections, the results of which will be announced on June 4, the officials said. Prime Minister Narendra Modi is widely expected to win a rare third term.
The officials did not want to be named because the conversations are private.
India's ministries of commerce and external affairs, Oman's embassy in India and the ministry of external affairs did not respond to emails seeking comment.
India has made little progress on an agreement with the Gulf Cooperation Council (GCC) and has focused on seeking bilateral agreements with GCC member countries such as Oman and the United Arab Emirates.
The planned deal with Oman “also provides a competitive advantage as the GCC negotiates trade deals with Pakistan and China,” the official said.
Oman has agreed to remove tariffs on Indian exports worth $3 billion annually, including agricultural products, gems and jewelry, leather, cars, medical equipment, engineering products and textiles, officials said.
India has agreed to reduce import duties on certain petrochemicals, aluminum and copper from Oman, while restricting imports of such goods, officials said.
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