India & Oman May Sign Proposed FTA In January 2024
In all probability, a Free Trade Agreement (FTA) may be signed between India and Oman in January 2024.
“Negotiations are on track and both sides have already agreed on most of the text of the chapters of the Comprehensive Economic Partnership Agreement (CEPA),” CNBC quoted government sources as saying.
The second round of talks for the proposed pact was concluded earlier this month in Muscat.
Bilateral trade between India and Oman in fiscal 2022-23 amounted to US $12.39 billion. India’s exports to Oman have increased from $2.25 billion in fiscal 2018-19 to $4.48 billion in fiscal 2022-23.
Oman is India’s third-largest export market in the Middle East and 80 percent of Indian exports to Oman attract average import duty of 5 percent. The FTA might further reduce this import duty.
Key Indian exports to Oman include, textiles, iron and steel products, electronics, machinery, plastics, boneless meat, essential oils, and motor cars are likely to benefit from duty exemption.
“Oman is one of the most reliable and steadfast partners of India in West Asia,” former Indian Ambassador Ashok Sajjanhar said while welcoming the trade talks.
He added that stronger bilateral, political, strategic and economic relations are beneficial not just for the people of India and Oman but also for peace, security and prosperity of the region.
