India-Oman Free Trade Agreement Talks Progressing with Key Round Ahead

The proposed Free Trade Agreement (FTA) between India and Oman is progressing well, and the two nations will convene again to resolve any remaining concerns. As stated by an official. Commerce and Industry Minister Piyush Goyal's recent trip to Muscat provided a significant uplift to the negotiations.

On January 27, tradeministers from India and Oman convened in Muscat to explore the progress of a possible agreement and advance the discussions. The agreement was talked about by Goyal and Qais bin Mohammed Al Yousef, the Minister of Commerce, Industry, and Investment Promotion in Oman.

In November 2023, the formal negotiations for the agreement officially commenced under the title CEPA. Under these agreements, customs fees on a maximum quantity of goods exchanged between two trading partners are either significantly lowered or completely removed. Moreover, they relax regulations to promote service trade and attract investors.

Within the Gulf Cooperation Council (GCC), Oman holds the third position for India's export markets. India and the United Arab Emirates, another member of the GCC, also share a related agreement that commenced in May 2022.

Bilateral trade has declined from $12.39 billion (exports at $4.47 billion and imports at $7.91 billion) in 2022–2023 to $8.94 billion (exports at $4.42 billion and imports at $4.5 billion) in 2023–2024. India's main imports consist of urea and petroleum products. Over 70% of imports are sourced from them. Iron and steel, pet coke, gypsum, chemicals, along with propylene and ethylene polymers, are additional significant products.