NEW DELHI: India and Oman will sign a trade deal in the coming months, two Indian government officials said, as New Delhi seeks to expand its ties in the Middle East, where rising tensions are putting major shipping routes at risk.

“It will help India with a strategic partner and access to key trade routes in a volatile region,” one official said.

India and Oman have annual trade of less than $13 billion, but the relationship is important for New Delhi as the Gulf nation is a gateway to the narrow Strait of Hormuz between Oman and Iran, a major transit point for global oil shipments.

The trade deal requires the approval of the government that wins India’s ongoing national elections, whose results are to be announced on June 4. Prime Minister Narendra Modi is widely expected to win a rare third term.

Making little progress on a deal with the Gulf Cooperation Council (GCC), India has pivoted to seeking bilateral deals with GCC member nations such as Oman and the United Arab Emirates.

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 $3bn, including agricultural products, gems and jewellery, leather and automobiles.

Published in Dawn, April 28th, 2024