India, Oman Free Trade Agreement Possible in January 2024
04 January 2024: Talks between between India and Oman are in full swing and there is a possibility signing of Free Trade Agreement (FTA) in January 2024 as per government reports. Officials of the two countries concluded the second round of talks for the pact, Comprehensive Economic Partnership Agreement (CEPA) in December 2023 in Muscat. Negotiations on the text of most of the chapters have been concluded by both sides.
“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 said.
Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries. The pact would help increase exports from India post the free trade agreement, as currently over 80 per cent of its goods enter Oman at an average 5 per cent import duties, and there are not many trade barriers.
According to GTRI’s (Global Trade Research Initiative) report, Indian goods worth $3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.
Export sectors which could get a boost in Oman include motor gasoline (exports worth $1.7 billion), iron and steel products (exports worth $235 million), electronics ($135 million), machinery ($125 million), textiles ($110 million), plastics ($64 million), boneless meat ($50 million), essential oils ($47 million), and motor cars ($28 million), will benefit from duty elimination, the report has stated.
“Oman’s GDP is about $115 billion and its population is 5 million. Oman’s higher per capita income ($25,060) compared to India’s ($2,370) could mean a demand for more diversified and possibly higher-value goods and services in Oman, which India could aim to supply,” GTRI Co-Founder Ajay Srivastava has said.
The bilateral trade stood at USD 12.39 billion in 2022-23. India’s exports have increased from $2.25 billion in 2018-19 to $4.48 billion in 2022-23. Imports from the Gulf nation were $8 billion in the last fiscal.
