As India seeks to develop its ties in the Middle East, the South-Asian nation will be signing a trade deal with Oman in the next two months. The announcement comes against the backdrop of the rising tensions in the Red Sea where major shipping routes are at risk due to the ongoing attacks.
"It will help India with a strategic partner and access to key trade routes in a volatile region," officials said.
Even though the annual trade between India and Oman is less than $13 billion, the relation is crucial for New Delhi as Oman is a major bridge to the Strait of Hormuz which is present between Oman and Iran, an important rout for the global oil shipments.
Israel's fight against Hamas in Gaza has escalated into disputes with Iran, and Yemen's Iran-aligned Houthi militants have conducted several drone and missile attacks in the Red Sea region, claiming support with Palestinians in Gaza.
Now, according to the reports, the current trade deal will need the approval of the government that wins the ongoing Lok Sabha Elections in India, the results for which will be announced on June 4.
After making little progress on an agreement with the Gulf Cooperation Council (GCC), India has shifted its focus to bilateral accords with GCC member states such as Oman and the UAE.
The planned deal with Oman "also gives a competitive edge as GCC is negotiating trade agreements with Pakistan and China," the official said.
Oman has agreed to eliminate duties on Indian exports worth an annual $3 billion including agricultural products, gems and jewellery, leather, automobiles, medical devices, engineering products and textiles, the officials said
India has agreed to reduce duties on some petrochemicals, aluminium and copper from Oman, while capping imports of such goods, the officials said.
(with inputs from agencies)