Muscat: Trade between India and Oman grew nearly 67 per cent over the last year, pointing to stronger economic ties and a closer relationship between the two countries, India’s top diplomatic official in the Sultanate said.
Indian companies have set up more than 3,000 joint ventures with their Omani counterparts, and given the warm, historic relations between both nations, Indian participation in the economic and social development of Oman is only set to increase, with the Sultanate gearing up for economic expansion and diversification in the future.
“The economic and commercial relations between India and Oman remain robust and buoyant,” said Rakesh Adlakha, Charge d’Affaires at the Indian Embassy in the Sultanate. “Bilateral trade registered a remarkable growth of some 67 per cent in 2017-18, reaching $6.7 billion (some OMR2.58 billion). Investment flows, both ways, have been robust, as reflected in numerous joint ventures, established both in India and Oman.”
“There are more than 3,000 Indo-Omani joint ventures in Oman, with an estimated total investment of over $7.5 billion (OMR2.89 billion). Indian companies are among the leading investors in the Sohar and Salalah freezones,” he added. “Indian companies are also fast emerging as key investors in the Special Economic Zone of Duqm.”
Speaking on the occasion of India’s 72nd Independence Day, Adlakha said that Indian expertise would continue to remain integral to the economic and social development of the country. Oman embarks on its Tanfeedh programme for economic diversification, with the aim of increasing its sources of revenue, weaning the country away from traditional fossil fuel-based sources of revenue, and generating employment for the next generation of young professionals in the country.
The latest development between the two nations includes the signing of some eight Memoranda of Understanding between India’s Minister of Commerce and Industry and Civil Aviation, and Oman’s Minister of Commerce and Industry, at the 8th session of the Indo-Oman Joint Commission Meeting and 9th session of the Indo-Oman Joint Business Council on July 16 and 17 this year.
Sohar, Salalah and Duqm are already home to several key industries, which manufacture a number of goods and provide a number of services that focus on a non-oil future. Some examples of this include cement manufacturing plants, metal production and smelting facilities, fertiliser industries and a sebacic acid plant, which will produce raw materials used in the manufacture of aromatics, antiseptics, paints, hydraulic fluids, plastics, lubricants, cosmetics and candles. Indian companies were also involved in the construction, development and maintenance of Oman’s new airports in these three cities.
“India has always been a partner in Oman’s growth story and is keen to contribute to the success of Oman’s national programme for economic diversification,” said Adlakha. “The Embassy of India, Muscat, has been encouraging Indian companies to participate in sectors prioritised by the Government of Oman, including logistics, minerals and mining, and manufacturing, as well as to invest in free-zones and special economic zones.”
“India has already been contributing to the human resource development in Oman by providing professional training under its ITEC programme,” he added.
“Further, there is a tremendous opportunity for expanding India-Oman cooperation in areas such as food security, skill development, training, renewable energy, development of SMEs and startups, cyber-security, space applications, engineering goods, IT & IT-enabling services, healthcare and pharmaceuticals.”
“India and Oman have been cooperating over security matters, including counter-terrorism,” said Adlakha. “The bilateral defence cooperation, characterised by joint military exercises and regular exchange of visits, has also been growing. India remains committed to nurturing and expanding its strategic partnership with Oman through enhancing the existing cooperation and identifying new areas for bilateral, regional and global collaboration with a view to meeting the aspirations of our two countries.”
Business operators in Oman also hailed the contributions of the Indian community in Oman towards the economic and social development of the Sultanate.
“We have been in Oman for the last 30 years, and are currently under management from the State Bank of India, the largest bank in India,” said PK Subuddhi, general manager for Mustafa Sultan Exchange.
“We have been operating here for 30 years and we have been facilitating the remittances of people from the India expats, as well as other expats. I am happy to say that the journey has been successful and thanks to the support of the Indian corridor, things have been very, very good.”
“I don’t think there has been a single blot here, because the journey has been smooth so far, and I think we went through what I would almost call a golden period,” he added.
“Remittances are a part of the banking system, so we have been a part of the economy. It’s only been in the last few months that you have seen a slight drop in the number of Indians in Oman, but Indian workers have always played a very important role in developing the economy here, across many sectors. Indians have made an immense contribution in every sphere here, be it as bankers, doctors, teachers or many others fields. In terms of businesspersons, Indians are a part and parcel of the economy and have done very well here. We are also involved in the training and skill development of Omanis and they are doing very well and coming up now.”
Dr. KP Sebastian, CEO for New India Assurance, added: “Indian companies are contributing to the growth of Oman, not just in terms of the economy, but also in terms of the infrastructure. Indians have helped in building up Oman through Indian companies and Indian workers. The role of expats in the development of Oman is very well known. Relations between Omanis and Indians have been so strong and so intimate and so loving and caring, so we always cherished the relationship. Omanis are among the most courteous persons.”
“I think the present generation also needs to recognise the intimacy and the bonds of the relationship, because Indians and Omanis together have played a pivotal role here, and we should try to develop this relationship further so that the partnerships help us rise higher,” he added.
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