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