Indo-Oman trade rises to $4.5 billion: Anand Sharma

Muscat: The bilateral trade between India and Oman has risen to $4.5 billion, said Commerce & Industry Minister Anand Sharma here.

The 6th Indo-Oman Joint Commission Meeting held in Muscat on Sunday has reviewed the entire gamut of bilateral economic relations and means of enhancing bilateral trade between the two countries.

Commerce & Industry Minister Anand Sharma, who led the Indian delegation to Oman, also chaired the Joint Business Council Meeting held at Oman Chamber of Commerce which was organized by OCCI and Federation of Indian Chambers of Commerce & Industries (FICCI) on Sunday.

Rajan Mittal, FICCI President represented the Indian Business while the Omani delegation was led by the Minister of Commerce & Industry, Maqbool Ali Sultan.

The two way trade, which rose to $4.5 billion, needs to increase further to reflect the growing India-Oman business relations, said Sharma.

During the talks, Sharma said the US $ 969 million Oman India Fertilizer Company (OMIFCO) at Sur; acquisition of the Shadeed Iron & Steel plant in the port city of Sohar for $ 464 million; raising of its stake to 26% from 4% in the $ 1 billion refinery at Bina in Madhya Pradesh by Oman Oil Company are a few shining examples of burgeoning economic and bilateral co-operation.

Sharma also called on the deputy Prime Minister for the Council of Ministers Sayyid Fahad bin Mahmoud bin Mohammed Al Said and held substantive discussions with Special Advisor to The Sultan for External Liaison Omar bin Abdul Muniem Al-Zawawi.

Sharma emphasized the priority attached by Indian Government for cooperation with Oman in Petroleum, Gas and fertilizer sectors while the Deputy PM underscored the need for greater cooperation in capacity building and information technology.

Omani side agreed in-principle to invest in India for revival of few closed plants of Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation Ltd. (HFCL) and the expansion in RCF (PSU of Government of India) through investment by Oman Oil Company. Both sides agreed to form a Senior level Working Group representing Government of India, RCF, KRIBHCO from Indian side and Oman Oil Company from Omani side for initiating early due diligence.

It is estimated that these will bring in investments of close to $3billion. BPCL and Oman Oil Marketing Company agreed to collaborate and jointly study the possibility of setting up a lube blending plant in Oman and marketing in neighbouring countries.

The India-Oman Joint Investment Fund with a seed capital of US $ 100 million, to be increased up-to US $1.5 billion, has been agreed upon through an MOU signed between the two sides in November 2008.

This initiative is expected to function as a catalyst to promote and partnership between the private sectors of the two countries and enhance the trade and investment between the two countries.

Sharma stressed on the need for the fund to be operationalised and augmented immediately.

A number of sectors have been identified for investment cooperation such as (a) Agriculture (b) Air ports, sea ports and railways (c) Hospitals (d) Power including nuclear power (e) Renewable energy including solar and wind energy (f) Mining (g) Oil and gas (h) Education and skill development (i) Tourism (j) Healthcare (k) Infrastructure and (l) Chemicals and Fertilisers.

Both countries agreed to pursue cooperation in field of Human Resource Development especially skill development in the fields of Technology, Management and Information Technology (IT) including co-operation in Small and Medium Enterprises (SME) sector.

The Omani side expressed its keenness for setting up super-speciality hospitals in India and diagnostic facilities in the form of Joint Ventures, for which an Omani delegation would go to India shortly. Investments in agro processing specially in Indian SEZs were also discussed.

Oman has a strategic location, and has entered into Free Trade Agreements with several countries including USA, which offers huge opportunities for Indian products to these markets apart from the GCC.