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India set to sign trade handle Oman to broaden its Middle East ties

India and Oman will sign a trade handle the coming months, two Indian federal government authorities stated, as New Delhi seeks to broaden its incorporate the Middle East, where increasing stress are putting major shipping routes at risk.

It will help India with a tactical partner and access to key trade routes in an unstable area, one official informed .

India and Oman have yearly trade of less than $13 billion, but the relationship is necessary for New Delhi as the Gulf country is an entrance to the narrow Strait of Hormuz between Oman and Iran, a major transit point for worldwide oil deliveries.

Israel's war against Hamas in Gaza has spread to hostilities with Iran, and Yemen's Iran-aligned Houthi militants have released repetitive drone and missile strikes in the Red Sea location, declaring solidarity with the Palestinians in Gaza.

The trade deal requires the approval of the government that wins India's ongoing nationwide elections, whose results are to be revealed on June 4, the officials stated. Prime Minister Narendra Modi is extensively expected to win an unusual third term.

The authorities asked not to be called as the conversations are personal.

India's trade and foreign ministries and Oman's embassy in India and foreign ministry did not react to emails seeking remark.

Making little progress on a deal with the Gulf Cooperation Council (GCC), India has pivoted to looking for bilateral handle GCC member nations such as Oman and United Arab Emirates.

The planned handle Oman also gives a competitive edge as GCC is working out trade agreements with Pakistan and China, the official said.

Oman has accepted get rid of responsibilities on Indian exports worth an annual $3 billion including agricultural products, gems and jewellery, leather, cars, medical devices, engineering products and fabrics, the officials said

India has agreed to decrease tasks on some petrochemicals, aluminium and copper from Oman, while capping imports of such goods, the authorities stated.

(source: Reuters)