Team Blitz India
MUSCAT: India, Oman free trade agreement is likely to be inked next month. Ranked as India’s thirdlargest export market within the Gulf Cooperation Council (GCC), FTA with Oman is likely to boost Indian exports further after the implementation of the agreement.
Apart from many trade barriers, the agreement will also help 80% of Indian goods to be exempted from an average of 5% import duty levied by the West-Asian country of Oman. India and Oman trade links go back to many centuries preceding the colonial rule in India.
Officials from India and Oman concluded the second round of talks for the pact, officially called the Comprehensive Economic Partnership Agreement (CEPA) in December here. The negotiations on the text of most of the chapters have been concluded by both sides.
The negotiations for the proposed Free Trade Agreement (FTA) between India and Oman are moving at a fast pace and the pact is likely to be signed next month, a senior government official said after the meeting.
“With Oman, there is a very good progress and both sides are very eager to conclude this deal. It may be signed in January 2024,” the official added. Meanwhile, according to a report published by Global Trade Research Initiative, Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman after the inking of the Free Trade Agreement between the two countries.
Oman will benefit in the sectors including that of motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils and motor cars which will benefit from duty elimination.
India-Oman bilateral trade stood at USD 12.39 billion in 2022-23. India’s exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022- 23. Imports from the Gulf nation were USD 8 billion in the last fiscal. India already has a CEPA treaty with the UAE in May 2022. Oman’s FTA will further boost Indian business with the Gulf Cooperation Council (GCC).
