India and Oman are close to concluding talks on a trade deal that would facilitate mutual access of goods and services to each other's markets, officials familiar with the matter said, further cementing the South Asian country's presence in the Gulf region.
The two sides have reached consensus on most points of the Comprehensive Economic Partnership Agreement and talks are expected to conclude soon, the people said, asking not to be identified because the talks are private. A deal could be completed as early as March, one of the people said.
Although Oman is a small economy, its location in the region makes it crucial to India. Oman lies on the Strait of Hormuz, a key oil transport chokepoint through which most of Asia's crude oil travels. Oman also has the fifth largest population of Indians working abroad.
New Delhi wants lower tariffs on exports to Oman, from rice and pharmaceuticals to petroleum and steel products, the people said. It is also negotiating with Oman to facilitate access for Indian professionals such as doctors, nurses, engineers and other workers.
Oman wants better access for goods such as downstream petroleum products, fertilizers and iron and steel products, among others, the people said.
A spokesman for India's Commerce Ministry did not immediately respond to an email request for further information. Omani government officials could not be reached for comment.
The two sides started talks on the trade deal just three months ago, and their haste to finalize the deal shows Prime Minister Narendra Modi's determination to build stronger ties with the Middle East. India has already signed a free trade agreement with the United Arab Emirates and is currently negotiating a trade agreement with the Gulf Cooperation States.
Oman is India's third largest trading partner among the GCC countries. According to the Indian Ministry of Commerce, two-way trade amounted to $12.38 billion in 2022-23.
Sultan Haitham bin Tarik in December became the first Omani ruler to visit India in over two decades. After the voyage, Oman assigned New Delhi an exclusive zone in the strategically located Dqum port for its commercial cargo and for berthing of warships.
Modi's government recently accelerated trade talks with several key trading partners, including the United Kingdom, the European Union and the European Free Trade Association, which includes Switzerland, Norway, Iceland and Liechtenstein.
The two sides have reached consensus on most points of the Comprehensive Economic Partnership Agreement and talks are expected to conclude soon, the people said, asking not to be identified because the talks are private. A deal could be completed as early as March, one of the people said.
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Although Oman is a small economy, its location in the region makes it crucial to India. Oman lies on the Strait of Hormuz, a key oil transport chokepoint through which most of Asia's crude oil travels. Oman also has the fifth largest population of Indians working abroad.
New Delhi wants lower tariffs on exports to Oman, from rice and pharmaceuticals to petroleum and steel products, the people said. It is also negotiating with Oman to facilitate access for Indian professionals such as doctors, nurses, engineers and other workers.
Oman wants better access for goods such as downstream petroleum products, fertilizers and iron and steel products, among others, the people said.
A spokesman for India's Commerce Ministry did not immediately respond to an email request for further information. Omani government officials could not be reached for comment.
Expand
Oman is India's third largest trading partner among the GCC countries. According to the Indian Ministry of Commerce, two-way trade amounted to $12.38 billion in 2022-23.
Sultan Haitham bin Tarik in December became the first Omani ruler to visit India in over two decades. After the voyage, Oman assigned New Delhi an exclusive zone in the strategically located Dqum port for its commercial cargo and for berthing of warships.
Modi's government recently accelerated trade talks with several key trading partners, including the United Kingdom, the European Union and the European Free Trade Association, which includes Switzerland, Norway, Iceland and Liechtenstein.
