|
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) could allow Indian companies to look at Oman not just as an export destination but also as a regional base for manufacturing, processing and distribution to other markets, Federation of Indian Export Organisations (FIEO) Director General and CEO Ajay Sahai said.
Highlighting the role of Sohar Port in such a strategy, Sahai said its location, logistics connectivity and adjoining free trade zone could help Indian companies build operations in Oman and serve markets across the Gulf and East Africa. The strategic location of Sohar Port is important for our increasing trade, and since Sohar Port is a free trade zone along with the port, we should also look at investment and manufacturing, Sahai told ANI. He said Indian companies could explore sending intermediate products to Oman for further processing and subsequently target markets with which Oman has preferential trade arrangements, subject to applicable trade and origin requirements. We can export many such products from here to Oman, Sohar port, where they can process further intermediate products and take advantage of their free trade and export them to the US or GCC countries, he said. Sahai also pointed to warehousing as another area where Indian exporters could use Oman as a regional distribution base. If we locate warehousing here, our trade with other GCC countries for East Africa will be at a very competitive cost, he said. According to Sahai, keeping goods closer to destination markets could help exporters deal with logistics challenges and improve the efficiency of redistribution. So if we can warehouse our goods near Sohar port or near Sohar zone, then we will get a lot of help in redistribution from there, he said. He added that larger shipment volumes could also help exporters secure more competitive logistics costs. Sahai also highlighted provisions under the India-Oman trade agreement related to movement of professionals, saying they could support Indian companies establishing operations in Oman. We have kept trade, investment and services as a part of it, he said. Referring to intra-corporate transfers, Sahai said the limit for Indian companies has been increased to 50 per cent from Oman's existing 20 per cent ceiling. So there are many companies that want to use Indian professionals. They can manufacture in Oman and make their Indian professionals 50% of the total workforce, he said. He added that such provisions, combined with Omans infrastructure and logistics connectivity, could be particularly useful for knowledge-driven sectors seeking to establish a regional presence. (ANI)
|
