(MENAFN) According to two Indian government officials, India and the Sultanate of Oman are poised to finalize a trade agreement in the coming months, signaling New Delhi's concerted efforts to enhance its ties with the Middle East region. One official underscored the strategic significance of this agreement, stating that it would establish Oman as a key partner for India while facilitating access to major trade routes in the region. The anticipated agreement is expected to bolster bilateral trade relations between the two countries, which currently stand at less than USD13 billion annually.
Of particular importance to India is Oman's strategic location as a gateway to the Strait of Hormuz, a crucial transit point for global oil shipments. The trade agreement is viewed as a means to solidify India's presence in the region and leverage Oman's pivotal role in facilitating trade and commerce.
However, the finalization of the trade agreement hinges on the approval of the incoming government following the ongoing national elections in India, with the election results slated for announcement on June 4. With Prime Minister Narendra Modi widely anticipated to secure a third term—an uncommon feat in Indian politics—the prospects for advancing diplomatic and trade initiatives with Oman appear promising.
Despite the optimism surrounding the impending agreement, the officials speaking on the matter opted to remain anonymous due to the sensitive nature of the discussions. This confidentiality underscores the delicate diplomatic maneuvering involved in forging international trade partnerships.
Moreover, the planned trade agreement with Oman is seen as conferring a competitive advantage to India, particularly as the Gulf Cooperation Council engages in negotiations for two separate trade agreements with Pakistan and China. By solidifying its trade ties with Oman, India aims to position itself favorably within the evolving dynamics of regional trade partnerships.
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