Next Round of India-Oman FTA Talks on Jan 16; Positive Negotiation Progress
Textual Talks Concluded for India-Oman CEPA Agreement
Negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman are advancing positively, with both sides concluding talks on most chapters of the pact. Two rounds of in-person negotiations, along with numerous inter-sessional meetings, have taken place, showing significant progress across all covered CEPA chapters.
Addressing speculation about potential delays, the unnamed official emphasized that any talk of hindrances is premature, as the negotiation process is ongoing. Both countries aim to finalize negotiations to establish a mutually beneficial agreement contributing to the welfare and development of their respective populations.
Oman stands as India’s third-largest export destination among Gulf Cooperation Council (GCC) countries. Bilateral trade has surged to $12.39 billion in 2022-23 from $5 billion in 2018-19, with Indian exports increasing from $2.25 billion to $4.48 billion during the same period.
A report from the Global Trade Research Institute (GTRI) suggests that once a comprehensive free trade agreement is reached, Indian goods such as gasoline, iron and steel, electronics, and machinery, valued at $3.7 billion, will experience significant growth in Oman.
India’s imports from Oman, totaling about $8 billion in 2022-23, include key products like petroleum products, urea, and propylene and ethylene polymers. The existing import duties on Indian goods entering Oman stand at an average of 5 percent, while Oman’s duties range from 0 to 100 percent, with specific duties in place.
The CEPA holds strategic importance for India, serving as a gateway to strengthen its presence in Middle Eastern economies. It is anticipated to boost India’s geopolitical standing and deepen ties with other Middle Eastern nations. Deep Kapuria, Chairman of Hi-Tech Gears and an international trade expert, emphasized that this agreement would not only enhance trade ties with the Middle East but also contribute to India’s $1 trillion export target of merchandise products by 2030.
