India-Oman Free Trade Agreement Negotiations in Advanced Stage
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On Tue, 27 Aug, 4:03 PM UTC
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India-Oman free trade pact talks at advanced stage: Official
Discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early, Indian Ambassador to Oman Amit Narang said on Tuesday. The pact will give a significant push to bilateral trade and investment ties between the two countries, he said. The pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to boost Indian exports to the west Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. "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," Narang said. Addressing an event organised by Ficci here, the Indian Ambassador to Oman also highlighted the significant potential for enhancing direct shipping links between the two nations as a large part of Indian exports to Oman come not directly but through the UAE. He said the India-Oman bilateral trade, which crossed USD 12 billion in 2022-23, has moderated and settled at USD 8 billion in FY24. "Between 2021 and 2023 the bilateral trade between India and Oman more than doubled... we went from USD 5 billion to cross USD 12 billion. "In the past financial year, the bilateral trade has moderated a little bit, it has settled to USD 8 billion... moderation is mainly on account of over dominance of hydrocarbons in the bilateral trade," Narang said. "India imports a lot of oil and fertilisers from Oman and this decline in the value terms of the trade this year is a reflection of the decline in values of these two commodities globally," Narang said. He pointed out that a large part of Indian exports to Oman come not directly but through the UAE and these are not reflected in the India-Oman bilateral trade but in India's trade with the UAE, adding that there is potential for enhancing direct shipping links. "Currently, I understand that there are two shipping lines... there is therefore huge potential for direct shipping to reduce cost of bilateral trade and that will have a significant impact in further improving our bilateral trade figures," Narang said. Addressing the event virtually, Indian Ambassador to the UAE Sunjay Sudhir said India will soon upgrade its political engagement with the GCC (Gulf Cooperation Council) as a whole in the very near future. The Gulf Cooperation Council (GCC) brings together six Arab countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. "With ongoing efforts towards integration of our card system, instant payment platforms and messaging systems, economies of India and the UAE will be more closely integrated in the future," Sudhir said. He further asserted that GCC has emerged as an important hub for innovation with countries like the UAE and Saudi Arabia leading the charge, adding that the future holds immense potential for deeper cooperation in emerging sectors such as artificial intelligence, health-care and space technology reflecting the mutual aspirations for prosperity and sustainable development.
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India-Oman free trade pact talks at advanced stage: Official
India and Oman are close to finalizing a Comprehensive Economic Partnership Agreement (CEPA) to increase bilateral trade and investments. The agreement would benefit Indian exports, including textiles and pharmaceuticals, by eliminating duties. Improved direct shipping links were also discussed to reduce trade costs and enhance economic ties.Discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early, Indian Ambassador to Oman Amit Narang said on Tuesday. The pact will give a significant push to bilateral trade and investment ties between the two countries, he said. The pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to boost Indian exports to the west Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. "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," Narang said. Addressing an event organised by Ficci here, the Indian Ambassador to Oman also highlighted the significant potential for enhancing direct shipping links between the two nations as a large part of Indian exports to Oman come not directly but through the UAE. He said the India-Oman bilateral trade, which crossed USD 12 billion in 2022-23, has moderated and settled at USD 8 billion in FY24. "Between 2021 and 2023 the bilateral trade between India and Oman more than doubled... we went from USD 5 billion to cross USD 12 billion. "In the past financial year, the bilateral trade has moderated a little bit, it has settled to USD 8 billion... moderation is mainly on account of over dominance of hydrocarbons in the bilateral trade," Narang said. "India imports a lot of oil and fertilisers from Oman and this decline in the value terms of the trade this year is a reflection of the decline in values of these two commodities globally," Narang said. He pointed out that a large part of Indian exports to Oman come not directly but through the UAE and these are not reflected in the India-Oman bilateral trade but in India's trade with the UAE, adding that there is potential for enhancing direct shipping links. "Currently, I understand that there are two shipping lines... there is therefore huge potential for direct shipping to reduce cost of bilateral trade and that will have a significant impact in further improving our bilateral trade figures," Narang said. Addressing the event virtually, Indian Ambassador to the UAE Sunjay Sudhir said India will soon upgrade its political engagement with the GCC (Gulf Cooperation Council) as a whole in the very near future. The Gulf Cooperation Council (GCC) brings together six Arab countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. "With ongoing efforts towards integration of our card system, instant payment platforms and messaging systems, economies of India and the UAE will be more closely integrated in the future," Sudhir said. He further asserted that GCC has emerged as an important hub for innovation with countries like the UAE and Saudi Arabia leading the charge, adding that the future holds immense potential for deeper cooperation in emerging sectors such as artificial intelligence, health-care and space technology reflecting the mutual aspirations for prosperity and sustainable development.
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India and Oman are making significant progress in their negotiations for a comprehensive free trade agreement. The pact aims to boost bilateral trade and investment between the two nations.
India-Oman Trade Relations Strengthening
India and Oman are on the brink of a significant economic milestone as negotiations for a comprehensive free trade agreement (FTA) enter an advanced stage. This development marks a crucial step in strengthening the economic ties between the two nations, which have historically shared strong diplomatic and cultural bonds 1.
Progress in Negotiations
According to a senior Indian government official, the talks for the India-Oman Comprehensive Economic Partnership Agreement (CEPA) are progressing well. The official stated, "Negotiations for India-Oman CEPA are at an advanced stage," indicating that both countries are committed to finalizing the agreement in the near future 2.
Scope of the Agreement
The proposed FTA is expected to cover a wide range of areas, including:
- Trade in goods
- Trade in services
- Rules of origin
- Trade facilitation
- Customs cooperation
- Investment
- Intellectual property rights
This comprehensive approach aims to create a robust framework for enhanced economic cooperation between India and Oman 1.
Economic Impact and Expectations
The India-Oman CEPA is anticipated to significantly boost bilateral trade and investment. Currently, the bilateral trade between the two countries stands at $12.39 billion in 2022-23, up from $5.4 billion in 2020-21. This substantial increase demonstrates the growing economic ties and the potential for further expansion 2.
Strategic Importance
Oman's strategic location in the Gulf region makes it an attractive partner for India. The country serves as a gateway to other Gulf Cooperation Council (GCC) countries, Africa, and other Middle Eastern nations. This geographical advantage could potentially open up new markets and trade routes for Indian businesses 1.
Sector-specific Opportunities
The FTA is expected to create opportunities across various sectors. Key areas that could benefit include:
- Pharmaceuticals
- Health
- Food and agriculture
- Mining
- Petroleum products
- Textiles
- Engineering
- Gems and jewellery
These sectors have been identified as having significant potential for growth and collaboration between the two countries 2.
As negotiations continue to progress, both India and Oman are optimistic about the positive impact this agreement will have on their respective economies and the broader region. The successful conclusion of the CEPA could set a new benchmark for India's economic engagement in the Middle East and pave the way for similar agreements with other Gulf nations.
Reference
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