FTA, if signed, will witness a doubling of current bilateral trade in five years, Indian ambassador.
MUSCAT — For two nations that consider each other to be more than mere neighbours, the Indian prime minister, Narendra Modi’s visit to the Sultanate, where he will be holding crucial talks with His Majesty Sultan Haitham bin Tarik, will be a historic one, the Indian ambassador, G. V. Srinivas, indicated at a press conference to highlight the Indian head of state’s visit, yesterday.
While the Indian ambassador did not delve on whether the India-Oman free trade agreement (FTA) will be signed during this important visit, India is buzzing with reports that it will be formalised in these two days.
“Let me not unnecessarily prejudge until they are signed. However, it is expected, with much anticipation that the comprehensive economic partnership agreement (CEPA) or as many calls it, the free trade agreement (FTA), will be concluded at the earliest opportunity,” Srinivas said at the press conference.
Bilateral trade to double in five years if FTA is signed
The bilateral trade between India and Oman have significantly increased, rising from around $8.95billion in FY 2023-’24 to approximately $10.61 billion in FY 2024-’25. And this, if the FTA/CEPA is signed, is “expected to double in at least five years,” Srinivas said, adding that “in five years, if there is a double, it is not surprising”.
Three-nation tour
The state visit, which is part of the three-nation tour to Jordan and Ethiopia, from December 15 to 18, has immense significance where both nations will seek to further strengthen their tight bonds, even though it may be in the backdrop of various regional uncertainties.
India-Oman bonds
But, even in an era of uncertain peace in the region, the bonds between India and Oman have never been stronger and the signing of the FTA will mark a significant milestone in the bilateral relationship. The agreement would help significantly boost trade and investment by cutting or eliminating customs duties on a wide range of products and easing norms for services and investments, observers comment.
70th anniversary of diplomatic relations
The visit also follows the state visit of His Majesty the Sultan of Oman to India in December 2023. The forthcoming visit is particularly significant as it takes place during the year marking the 70th anniversary of the establishment of diplomatic relations between India and Oman, the ambassador said, reading out a statement.
“During His Majesty Sultan Haitham bin Tariq’s state visit to India in December 2023, the two leaders agreed on a forward-looking roadmap to further deepen bilateral ties. Several initiatives under the roadmap have already been implemented while others are currently under execution. India and Oman share a special and long-standing partnership rooted in centuries-old historical contacts sustained by strong trade linkages and close people to-people ties. In contemporary times, this relationship has evolved into a comprehensive strategic partnership marked by robust cooperation across a wide range of sectors,” the ambassador said.
Excellent political relations
“Political relations between India and Oman are excellent. Frequent exchanges at the highest levels complemented by regular ministerial and official-level interactions reflect the depth and maturity of the bilateral relationship. As one of India’s oldest strategic partners in the Gulf region, with the strategic partnership having been instituted by the two countries in 2008, Oman occupies a special place in India’s foreign policy.
“The bilateral partnership spans diverse areas including trade and investment, maritime cooperation and connectivity, energy, security and green energy, agriculture and food security, health, defence and security, technology and culture. Trade and investment constitute key pillars of the India-Oman relationship. Bilateral trade for the financial year 2024-2025 stood at $10.61 billion.
“Investment flows between the two countries have also been strong, with several joint ventures operating in both India and Oman. India-Oman joint ventures have made significant contributions to each other’s development. Developed cooperation between India and Oman encompasses joint exercises, training programmes and regular exchanges of visits,” the ambassador said.
675000 Indians in Oman – a living bridge
In recent years, both countries have also worked closely to enhance maritime security in the Indian Ocean region. Oman is home to a vibrant Indian community of over 675,000 who consider Oman as their second home and have contributed meaningfully to the nation’s development. This community serves as a living bridge between the two countries and plays a vital role in strengthening bilateral ties, the ambassador said.
Comprehensive talks between two leaders
During the visit, the Prime Minister will hold comprehensive discussions with His Majesty the Sultan of Oman, reviewing the entire spectrum of bilateral relationship and exchanging views on regional and international issues of mutual interest. The Prime Minister is also expected to address business leaders from both countries at a business forum and to interact with the Indian community in Oman. A number of bilateral documents are expected to be signed during the visit.
“These are currently under negotiation and preparation, and details regarding the agreements will be shared once they are concluded at an appropriate time during the visit. In conclusion, building upon the historic state visit of His Majesty the Sultan of Oman to India in 2023, the forthcoming visit of Modi to Oman is expected to further consolidate the strategic partnership between the two countries,” the ambassador said.
Taking place in the landmark year of 70th year of diplomatic relations, the visit will reinforce bilateral cooperation, open new avenues of engagement and further strengthen the enduring bonds between the people of India and Oman.
“We are, as we speak, trying to put as many of the agreements as possible so that the already very rich relationship that the two countries have gets further supplemented. Visits of the nature of the Indian prime minister to Oman are occasions when the entire gamut of relationship is discussed, guidance is taken at the highest level for further strengthening the relationship.
“I am never tired of mentioning that India-Oman relationship is a very mature relationship based on 5000 years of historical relations, hundreds of years of maritime relationship. If I mention here, Oman had already organised the voyage of the ship from here, commemorating 1000 years of such history with Oman, building on that, celebrating 1500 years of such maritime adventure, endeavours of India towards Oman.
“Oman also exports predominantly oil and energy related products to India. Reverse trade also happens in the energy sector. So that dominance of the energy in the bilateral trade basket is already there. Just as Oman wishes to have in their economy the contributions of the other sector, so does we, India and Oman together also want to add more and more beyond the energy sector to that. A number of projects which are being implemented in Oman by the Indian companies through their investments will also add to the new products coming into the town. So, I do not want to add exactly what contributed to this rise of roughly under two billion dollars of trade because there is a lot to be done together and we need to add each and every element that we can contribute for furthering our bilateral, not only trade but also investment relationship.
“India, as one of the biggest economies, four trillion dollars as of now has a lot to offer including for Omani captains of industry to invest in the country. As we know, Oman is already looking at India. There have been benefits coming out of the India growth story to the Omani investors.”
“More of that has to be scaled up. More investments both in the brown and green field have to be invited. Just as we also need to benefit Indian captains of industry are already aware of the very strategic location that Oman has, geopolitical, very near GCC, Middle East, also Africa.
The eastern coast of Oman is close to western coast of India more than the western coast of India is to the eastern coast of India. That speaks how close we are. We are actually more than neighbours with what are connecting us.
So, we will build up on all those things to further strengthen our bilateral trade and economic relationship,” the ambassador said.
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