Duqm port to be a gateway for Indian companies with regard to easier access to these large markets .
India accords a high priority to expanding its bilateral trade and investment ties with Oman which remain robust and buoyant , showinga growthof 3.6 per cent from $ 3.8 billion in 2015-16 to $ 4 billion in 2016-17 . Investment flows both ways , reflected in the number of joint ventures established in India and Oman , with an estimated total investment of around $ 7.5 billion .
Indian companies have invested in Oman in sectors like iron and steel , cement , fertilisers , textiles , cables , chemicals , automotives , etc ., especially in Sohar and Salalah . Major investments are from groups including Larsen & Turbo , Jindal Steel and Power , Indsil Ferrochrome , Mekore Alloys & Industries , TVS , Oswal , Saltic FZCO , Nagarzuna Fertiliser plant , etc .
India needs to widen cooperation with regard to shipping , transport , infrastructure building , mining , logistics and tourism , the development of the Duqm Port and the Special Economic Zone , Muscat ’ s IT Park , Knowledge Oasis , and academic institutions in Oman .
In the Duqm Special Economic Zone , there is a significant Indian presence ; Sebacic Oman , a $ 1.2 billion project , is a joint venture between India and Oman to build the largest Sebacic acid plant in the Middle East . The India-Oman Joint Investment Fund ( OIJIF ) between the State Bank of India and the State General Reserve Fund ( SGRF ) of Oman has started financing the project with an initial investment of $ 100 million and has raised another $ 220 million for the subsequent phase .
Food Security
India has offered cooperation to Oman for meeting its long term food security requirements . Oman has been looking to India for getting agricultural supplies , including wheat , rice and sugar , as well as greater bilateral cooperation aimed at developing the agriculture and fisheries sectors in Oman .
Make in India Initiative
Oman is collaborating with the Indian government in its efforts to boost the manufacturing sector in India . A joint fund has been set up by the State Bank of India and Oman ’ s State General Reserve Fund ( SGRF ), with initial capital of $ 320 million ($ 100 million + $ 220 in two tranches ) million asa special purpose vehicle for investment in India . The Indian government has invited Omani public and private companies to invest in India and capitalise on the initiative . There are more than 3,000 Indo-Omani Joint Ventures in Oman itself , which are valued at over $ 7.5 billion . India has made an investment of over $ 4.5 billion in Oman .
Recently , a 30 member delegation composed of young entrepreneurs visited India recently as part of the Oman India Joint Business Council at the invitation of PM Modi , who had extended the invitation during his visit to Oman in February this year .
Their discussions with PM Modi focused on strengthening food and energy security cooperation between the two countries , and the young leaders shared their perspectives on the old traditional maritime links between the two countries .
Besides high level political exchanges , India and Oman have also established various institutional mechanisms to promote trade and investment , including the Joint Commission Meeting ( JCM ) held at the level of Minister of Commerce and Industry from both the countries . Recently , in July 2018 , the 8th session of India-Oman Joint Commission Meeting was held at Muscat co-chaired by Shri Suresh Prabhu , Minister of Commerce & Industry and Civil Aviation of India , and Dr . Ali bin Masoud Al Sunaidy , Minister of Industry , Investment , Trade and Digital Economy of Oman .
* Huma Siddiqui is a respected Indian journalist covering diplomatic and strategic affairs as well as defence and aerospace sectors . She has been with The Financial Express for over 2 decades .
20 • INDIA-OMAN • 2018