India and Oman near free trade agreement, set to boost bilateral trade 

Talks between India and Oman on a free trade agreement (FTA) are going well, and they hope to finish the deal soon, said Indian Ambassador to Oman, Amit Narang, on August 27, 2024. The Comprehensive Economic Partnership Agreement (CEPA) is meant to boost trade and investment between the two countries. Further, it is also going to go a long way in strengthening strategic relations, as per a report by Press Trust of India.

The Comprehensive Economic Partnership Agreement (CEPA) is designed to eliminate tariffs on a range of products, significantly benefiting Indian exports to Oman. Key sectors expected to gain from this agreement include petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. By removing duties on these goods, the pact is anticipated to stimulate bilateral trade and investment.

Narang remarked, "Discussions for a bilateral CEPA with Oman are at an advanced stage. We hope to conclude these discussions early, and once this is done, this will be a significant push to bilateral, not just trade, but also bilateral investment ties."

Currently, bilateral trade between India and Oman, which exceeded $12 billion in the fiscal year 2022-23, has moderated to around $8 billion in FY24. The new agreement is expected to address this decline by bolstering trade volumes and opening new avenues for economic collaboration.

The CEPA is expected to have a broad impact on various industries. For instance, the removal of duties on textiles and electronics could provide Indian manufacturers with greater access to the Omani market, while Omani imports of Indian pharmaceuticals and machinery are likely to rise.

The agreement represents a crucial step in strengthening economic ties between the two nations, promising substantial benefits for both economies. The successful conclusion of these talks could mark a new phase in India-Oman relations, fostering greater economic engagement and cooperation.