Official visits between the representatives of Oman and India are frequent with the aim of enhancing various economic aspects between the two countries, which have long-standing trade relations. Both countries initiated discussions on a joint vision to conclude a Comprehensive Economic Partnership Agreement (CEPA), which aims to facilitate business and promote joint investments to build economic projects in various vital fields.
It is expected to contribute to increase the volume of trade exchange between Oman and India, encouraging mutual investments, and facilitating the movement of business and services between the two countries.
The proposed agreement will also reflect the two countries' common desire to expand their economic cooperation, while India has expressed a strong desire to work in several areas and locations within the framework of strengthening this economic cooperation to include in the future the establishment of infrastructure projects and the development of new projects.
Omani-Indian relations were strengthened following the official visit of His Majesty Sultan Haitham bin Tarik to India in December 2023, which received great attention from the Indian media and the keenness of the two countries to enhance existing aspects of cooperation in various fields and ways to develop them to serve common interests.
Oman is India's 29th trading partner, while the agreement is expected to improve financial stability and economic diversification in the country, and contribute to increasing Omani exports.
Officials in both countries believe that the agreement will enhance the Sultanate's position as a promising regional manufacturing center, and provide an opportunity for small, medium and emerging companies to enhance cooperation between them and develop the Omani economy.
Data reported by some Indian newspapers indicate that bilateral trade between Oman and India has witnessed strong growth.
India hopes that the agreement will be able to open doors for India in the Middle East and strengthen economic and strategic relations in the region, which is of great importance, while the Omani government is working to enhance economic openness within the framework of the rapid changes that the world is witnessing.
The volume of trade exchange between the two countries amounted to more than $8 billion in 2022, and the volume of Omani exports to India increased by 62 per cent compared to 2021. The volume of imports from India also increased by 60.8 per cent over the same period, while the number of Indian companies operating in Oman reached 6,000 companies by the beginning of this year.
According to a report by "The Economic Times" newspaper, the Omani market is of great importance to India due to its location in the region, while India wants to reduce customs duties on some exports to Oman and facilitate the access of Indian professionals such as doctors, nurses, engineers and other workers.
However, this issue is a concern among Omanis due to the presence of about 2.5 million expatriates in the country, as India ranks first in sending its workers to Oman, which reduces job opportunities for Omanis. In addition, the trend of Indian companies to open large commercial centers in the country has led to the closure of many small commercial establishments owned by citizens over more than two decades, which has led to an increase in the number of job seekers in the country. This is what must be realized so that the benefits accrue to the people of the country from any trade or economic agreement signed with a foreign country.
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