Bharat and Oman are gearing up to sign a significant trade deal, according to statements from two Bharatiya government officials. The move underscores Bharat’s efforts to bolster its relations in the Middle East amidst escalating tensions that threaten vital shipping routes.
One official highlighted that the trade agreement holds strategic importance for Bharat, providing access to crucial trade routes in a region marked by volatility.
Currently, annual trade between Bharat and Oman stands at less than $13 billion. However, the partnership is crucial for Bharat due to Oman’s position as a gateway to the Strait of Hormuz, a key transit point for global oil shipments, situated between Oman and Iran.
Recent developments in the region, such as Israel’s conflict with Hamas in Gaza and escalating hostilities with Iran, alongside Yemen’s Houthi militants launching drone and missile strikes in the Red Sea area, have further underscored the significance of strengthening ties between Bharat and Oman.
The negotiation of the trade deal is contingent upon the approval of the leading government in Bharat’s ongoing national elections, with results expected on June 4. Prime Minister Narendra Modi is widely anticipated to secure a rare third term in office.
While the discussions surrounding the trade deal remain private, sources close to the matter have revealed that Bharat’s trade and foreign ministries and Oman’s embassy in Bharat have yet to respond to inquiries seeking comment.
Bharat’s pursuit of bilateral agreements with Gulf Cooperation Council (GCC) member nations, such as Oman and the United Arab Emirates, comes amidst limited progress in negotiations with the GCC as a whole.
The proposed trade deal with Oman is expected to provide Bharat with a competitive advantage, particularly as GCC countries engage in trade negotiations with Pakistan and China.
Under the terms of the agreement, Oman has agreed to waive duties on Bharatiya exports valued at an annual $3 billion. These exports include a diverse range of products such as agricultural goods, gems and jewelry, leather products, automobiles, medical devices, engineering goods, and textiles.
Bharat has committed to reducing duties on certain petrochemicals, aluminum, and copper imported from Oman, while also imposing limits on the volume of such imports.
All over, the impending trade deal between Bharat and Oman signals a significant step towards strengthening economic ties between the two countries amidst geopolitical tensions in the region.
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