According to a study conducted by Avalon Consulting — an India-based private company in co-operation with the Omani Centre for Investment Promotion and Export Development (OCIPED), the total Omani exports to India have shown rapid growth from RO 133 million in 2005 to RO 911 million in 2009.
Studies indicate even better performance in the first half of 2010, with total Omani exports of RO 779 million over the six months alone.
An analysis of the Indo-Oman trade showed that Omani exports to India are chiefly dominated by oil.
However, within the non-oil basket, urea dominates Omani exports to India with a 65 per cent share and is under a buy back arrangement with India. Within the remaining non-oil, non-urea segment, Omani exports are dominated by a handful of products such as aluminium ingots, polypropylene and methanol.
The study also found a huge potential for exports of other products like flexible packaging films, polypropylene, plastic pipes, edible oil and marble, which account for about 55 per cent of the relevant market for the 21 short listed products. The demand for most of the short listed products is expected to grow at a compounded annual growth rate (CAGR) of 7-15 per cent being driven by large government projects, increasing disposable income and changing demographics. The relevant market for the short listed 21 products is estimated at RO 9.62 billion, said Faris al Farsi, Action Director-General of Export Development, OICPED in his presentation focusing on ‘Market Study in India — A Tool for Export Development’.
The study started with a survey of 160 exporters in OCIPED’s directory to find out their interest in India. This step was followed by a detailed discussion with the interested exporters with data on imports, import duties and so on.
As a result of this analysis, 21 products were finally shortlisted for the study, a precursor that India’s market size and relative scale, holds scores of more trade opportunities that Omani exporters could explore, stated Al Farsi. He encouraged Omani exporters to participate in OCIPED’s forthcoming matchmaking events that will be organised in February-June, 2011, he said.
The event was held under the auspices of Ahmed bin Suleiman al Maimani, Under-Secretary, Ministry of Commerce and Industry for Administrative, Financial and Region Affairs. The seminar was addressed by Anil Wadhwa, Ambassador of India, Vijay Kumar, Chief Executive Officer (CEO) of Infrastructure Group, Khimji Ramdas and Sridhar Venkiteswaran, Executive Director, Avalon Consulting.
In his address, Venkiteswaran emphasised that Omani exporters would need to focus significant attention on competing with domestic manufacturers in India and not to restrict to take share of the import pie. Studies indicate that there were many products where the Sultanate’s exports potential have strong and positive returns and exports of the kind could grow in the near future. In this context, if the Sultanate’s exports focus their efforts, then Oman can target to increase its overall non-oil exports to India from the current levels of RO 217 million to RO 372 million by 2014.
In an introductory address, N S Vijay Kumar, said: “The global market is in constant evolution because of alterations in technology, competition, imports, customer needs and the general economic situation. This calls for a company to draw up an Export Marketing Plan and constantly monitor the same to remain competitive in the global market.”
The study was conducted in line with OCIPED’s Export Strategy, which has identified India as an important target market for select Omani products of developing non-oil Omani origin exports.
The study encompassed an evaluation of the market to select products from Oman’s export basket and the match making events aimed at facilitating trade relationships between the interested Indian importers and Omani exporters.
Likewise, as part of the export strategy to tap new markets for Omani products, OCIPED has also conducted market studies for Yemen, Kenya, Tanzania, Syria, Iran, Sudan and Libya for potential export products to respective markets.