As India seeks to boost its bilateral Trade in the Middle East to compensate for the impact of the US tariffs, it has signed a bilateral agreement with Oman on Thursday. As part of the agreement, Oman offered zero-duty access to over 98% of its tariff lines. This includes several items ranging from gems and jewellery to textiles, Pharmaceuticals, and automobiles, as per the official statement of the Trade Ministry.
India, on the other hand, has agreed to reduce tariffs by 78% on its tariff line, covering 95% of imports from Oman. The Trade value between India and Oman exceeds $10 billion. India’s relationship with Oman is also important as it is situated at the narrow Strait of Hormuz, a major node in global Trade. Prime Minister Modi, addressing a meeting in Oman, stated that the opportunity opens new gates for India and facilitates the pace of global trade expansion.
This is the second pact signed by India this year after the one with the UK, and as per official reports, it will help the South Asian nation boost its Trade in the backdrop of US tariffs. The Trade deal is also important from the point of view of Oman, as it is its first deal after 2006, when it signed the deal with the US. India is currently facing 50% penalty tariffs from the United States of America, over its Trade relations with Russia.
New Delhi is also negotiating a Trade deal with the European Union and the US, but there has been no conclusion as of now. Ajay Srivastava, the founder of the Global Trade Research Institute, reflected that the deal is equally important for the geopolitical and regional strength as well as the tariff policies of the country.
It will significantly benefit the country, increasing its gems and jewellery sector’s export from 35 million dollars to 150 million in the next three years, as per Kirit Bhansali, the chairman of the Gems and Jewellery Export Promotion Council.
