India and Oman Finalise Comprehensive Economic Partnership Agreement

A free trade agreement is scheduled to be signed between Oman and the Indian government. This is part of an effort by the Indian government to enhance the economy. This is contained in an interview with an official. Commerce and Industry Minister Piyush Goyal is scheduled to visit Muscat in order to sign the free trade agreement. According to the interview, Commerce Secretary Rajesh Aggarwal is also expected in Oman.

The negotiations for the free trade agreement, CEPA (Comprehensive Economic Partnership Agreement), actually commenced in November 2023 and concluded this year. In a free trade agreement, both parties involved reduce or abolish certain customs duties on a number of products traded between the two nations. They also ease restrictions on the trade of services.

Oman is India's third-largest export destination among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the United Arab Emirates, which came into effect in May 2022. The other members of the council are Bahrain, Kuwait, Saudi Arabia, and Qatar. India and Qatar will also soon begin negotiations for a trade agreement.

India-Oman bilateral trade was projected to be approximately $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25. India's major imports are petroleum products and urea, accounting for over 70 percent of imports. Other major products include propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unrefined aluminum.

India's main exports to Oman include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships, boats and floating structures, electrical machinery, boilers, tea, coffee, spices, textiles, and foodstuffs.