Trade pact with Oman strengthens India’s energy security, say experts

PTI New Delhi

The free trade agreement with Oman will strengthen the energy and economic security of India in the volatile Gulf region, according to experts. The trade agreement between the two countries was implemented on June 1.

"First, it strengthens India's energy and economic security in a volatile region. Oman has long been one of India's most reliable partners in the Gulf," think tank CRF President Shishir Priyadarshi said. He added that as India remains heavily dependent on imported oil, gas and petrochemicals, deeper economic integration with Oman helps create a more stable and predictable framework for a relationship that is vital to the energy needs of India.  

The US-Iran war and the subsequent closure of the SoH have led to disruptions in supply chains across sectors, including agricultural goods and energy products. "So, the significance of this free trade agreement is larger than bilateral trade numbers. It is about securing critical economic relationships, creating new opportunities for the Indian industry, and signalling that India intends to be a leading player in shaping the next phase of global trade and connectivity," Priyadarshi added.