India on Thursday signed an economic partnership agreement with Oman to increase mutual trade and investment. Its purpose is to strengthen relations with the countries of the Middle East and to find new ways of trade to avoid American tariffs. The Indian Commerce Ministry said that Oman has offered duty-free export facility to India on more than 98% of its goods. This includes almost all Indian exports like gems and jewellery, textiles, medicines and automobiles.
In return, India will reduce duty on about 78% of its goods, which will provide relief to about 95% of the imports coming from Oman in terms of value. There is an annual trade of more than 10 billion dollars between India and Oman. This relationship is also important for India because Oman is the gateway to the Strait of Hormuz, located between Oman and Iran, which is a very important route for transportation of oil around the world.
Prime Minister Narendra Modi, in his address in Oman, said that this agreement will give new impetus to our trade, increase confidence in investment and open new opportunities in many sectors. This agreement is India’s second major agreement after the agreement with the United Kingdom this year. This will help Indian goods to reach new markets, especially when exporters are facing difficulties due to the strict tariffs of US President Donald Trump.
Oman’s first bilateral agreement since 2006
This is Oman’s first such agreement after the agreement with the US in 2006. After talks failed, Trump increased the duty on Indian goods to 50% at the end of August, which is the highest in the world. This also included 25% additional duty imposed by India on purchasing oil from Russia. Despite talks, India could not reach any agreement with the US or the EU this year, although initially there were plans to do so.
how much will the trade be
Ajay Srivastava, founder of Global Trade Research Initiative, said that this agreement is not limited to tariffs only, but it is also related to geopolitics and India’s presence in the region. Gems and Jewelery Export Promotion Council Chairman Kirit Bhansali said that this agreement will increase the export of gems and jewellery, which can increase from $ 35 million to about $ 150 million in the next three years.
Sensitive items like dairy, tea, coffee, rubber and tobacco have been kept out of this agreement. The statement said that this agreement will also create opportunities for India in Oman’s $12.5 billion services import market, where currently India’s share is only 5.3%.
Also read- Powerful scheme of Post Office, you will earn Rs 2.5 lakh just from interest sitting at home
Leave a Reply