India is set to sign a significant trade deal with Oman in the coming months, aiming to strengthen ties in the Middle East region. With tensions rising and major shipping routes at risk, this deal provides India with strategic advantages and access to crucial trade routes. Annual trade between India and Oman currently stands at less than $13 billion, but the relationship holds strategic importance for India due to Oman’s position as a gateway to the vital Strait of Hormuz.
The deal, which requires approval after India’s ongoing national elections, is expected to eliminate duties on Indian exports worth $3 billion annually, including agricultural products, gems and jewellery, and automobiles. In return, India will reduce duties on petrochemicals, aluminium, and copper from Oman, while also capping imports of these goods. This move is seen as India’s response to escalating tensions and a proactive step in securing its interests in the volatile region.