Oman Approves FTA With India
In such an agreement, two trading partners will either significantly reduce or eliminate customs duties on a maximum number of goods traded between them for promoting their respective trade in services and attracting investments, according to the sources
New Delhi: The Union cabinet is expected to take up the pact with Oman in its bilateral trade agreement as Oman's lower house, the Shura Council, on Wednesday approved the free trade agreement with India. In such an agreement, two trading partners will either significantly reduce or eliminate customs duties on a maximum number of goods traded between them for promoting their respective trade in services and attracting investments, according to the sources.
Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022. The talks for comprehensive economic partnership agreement or officially termed as CEPA with Oman formally began in November 2023 and the negotiations concluded this year.
The commerce ministry on Wednesday also stated that following approval of the competent authority, the draft cabinet note for signing and ratification was circulated to relevant ministries. Both sides are now in the process of securing internal approvals. “The Union cabinet, which will discuss several issues on Friday, is also likely to take up the pact for its consideration at its meeting here,” the source said.
In India, free trade agreements or FTAs are generally cleared by the Union cabinet. The Shura Council or Majlis A'Shura on Wednesday concluded its deliberations on the draft CEPA. At the conclusion of the deliberations, the Council approved the agreement. The Consultative Council is the democratically elected lower house of Oman.
As per the latest data, India-Oman bilateral trade was about $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25. India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.