India and Oman have successfully concluded negotiations for a free trade agreement (FTA), officially termed as the Comprehensive Economic Partnership Agreement (CEPA).
The landmark deal is expected to be signed after the formation of a new central government in India in the coming months, according to sources aware of the developments, as per the report.
The CEPA aims to significantly boost Indian exports to the West Asian nation by eliminating duties on a wide range of products, including petroleum products, textiles, electronics, pharmaceuticals, machinery, iron, and steel.
An anonymous source privy to the negotiations stated, “All issues have been sorted out. We are looking at good benefits in services. The deal with Oman will help us in building a holistic ecosystem for a green energy-efficient manufacturing base.”
Highlighting the strategic importance of the agreement, the source added, “It will allow Indian companies to set up manufacturing plants in Oman to export green products.”
This move aligns with India’s efforts to promote sustainable and eco-friendly manufacturing practices.
The finalisation of the trade talks comes ahead of India’s general elections, which are scheduled to commence on April 19, with the counting of votes set to begin on June 4.
Oman is currently India’s third-largest export destination among the Gulf Cooperation Council (GCC) countries, with bilateral trade reaching USD 12.39 billion in the fiscal year 2023, a significant increase from $5 billion in fiscal year 2019.
India’s exports to Oman have also witnessed a substantial rise, growing from USD 2.25 billion in fiscal year 2019 to USD 4.48 billion in fiscal year 2023.
However, at present, over 80 per cent of Indian exports to Oman are subject to an average import duty of 5 per cent. Oman’s import duties range from 0 per cent to 100 per cent, with a 100 per cent duty applicable to specific meats, wines, and tobacco products.
