India, Oman to announce a free trade agreement soon
What's the story
India and Oman are on the verge of finalizing a free trade agreement (FTA), an official has said to PTI. The text of the trade pact is currently being translated into Arabic for approval by the Omani cabinet. Once approved, both countries will jointly announce the conclusion and signing of this Comprehensive Economic Partnership Agreement (CEPA). The announcement could come sooner than expected, possibly within a few weeks.
Agreement
Negotiations commenced in November 2023
The negotiations for the CEPA officially started in November 2023. Such agreements usually involve two trading partners significantly reducing or eliminating customs duties on most goods traded between them. They also simplify regulations to encourage trade in services and attract investments. Oman is India's third-largest export destination among Gulf Cooperation Council (GCC) countries.
Trade figures
Bilateral trade surpassed $10B in last fiscal
Bilateral trade between India and Oman surpassed $10 billion in the 2024-25 fiscal year, with Indian exports worth $4.06 billion and imports at $6.55 billion. Major imports to India include petroleum products and urea, which account for over 70% of total imports. Other significant goods include propylene and ethylene polymers, pet coke, gypsum, chemicals as well as iron and steel.