India and Oman have entered into an agreement under which the two sides will prepare a report on nine areas of cooperation for direct investment and technology transfer. The two sides are also eyeing contract farming as the next area of cooperation.
According to Oman’s official news agency, the agreement was signed by Planning Commission deputy chairman Montek Singh Ahluwalia and Omani ruler Sultan Qaboss’ adviser for economic planning affairs Mohammed bin Al Zubair.
The Supreme Committee for Promoting Economic Relations between Oman and India was established under a directive of Sultan Qaboos bin Said and Prime Minister Singh during the latter’s visit to the country in 2008 to promote economic cooperation between the two.
“The report shows fields upon which economic and trade relations can be expanded not only between the governments of the two countries, but also between the private sector in the Sultanate and the Republic of India,” Zubair said.
Oman could strengthen the domestic availability of food grains by entering into “contract farming” with Indian farmers, Ahluwalia said. “The Indian law does not allow foreign companies to buy land there and therefore, Omani companies can enter into a contract farming deals.”
“We have identified from our side a couple of firms that have shown interest in tying up with Omani investors to get into contract farming arrangement,” Ahluwalia said.