Prime Minister Tour to Jordan, Ethiopia, and Oman
Prime Minister recent visit to Jordan, Ethiopia, and Oman aimed to strengthen India's trade and security relations with West Asia and Africa amid global geopolitical uncertainties.
Key Highlights of the Tour
- External Messaging:
- The tour was marked by unexpected gestures from regional leaders, such as the Ethiopian Prime Minister and Jordanian crown prince personally chauffeuring INDIAN PM.
- India-Oman Free Trade Agreement (FTA):
- A significant step with the signing of the FTA marking 70 years of diplomatic ties.
- Comprehensive Economic Partnership Agreement (Cepa) is the second FTA with a West Asian nation, after the UAE in 2022.
- Allows India near universal duty-free access to the Omani market (98.08% of tariff lines) with immediate tariff elimination for 97.96%.
- India liberalized nearly 95% of imports from Oman.
- Provision for 100% FDI by Indian companies in major services sectors.
- Muscat agreed to lift its ban on the export of rough marble blocks to India.
- India-Jordan Relations:
- Jordan is India's third-largest trade partner and a vital fertiliser supplier.
- A number of cooperation agreements were signed reinforcing economic interests.
- India-Ethiopia Cooperation:
- Focus on enhancing investment opportunities in Ethiopia, a strategic country in Africa.
- 675 Indian companies have invested $6.5 billion, mainly in textiles and pharmaceuticals.
- India is the third-largest source of FDI in Ethiopia but needs to deepen cooperation, especially compared to China and Turkiye.
- India played a role in Ethiopia's BRICS membership and is discussing the India-Africa Forum summit.
Significance of the Tour
This three-nation tour represents a continuation of India's traditional ties with the region, focusing on economic engagement and expansion. The challenge lies in how effectively New Delhi can capitalize on this momentum for strategic and economic gains.
