India and Oman are likely to finalize their proposed Free Trade Agreement (FTA) in January 2024
It is anticipated that India and Oman will finalize their proposed Free Trade Agreement (FTA) in January 2024. According to government sources, the negotiations are proceeding as planned, and the majority of the wording for the proposed Comprehensive Economic Partnership Agreement (CEPA) has already been agreed upon by both parties. Earlier this month in Muscat, the planned pact's second round of negotiations came to an end.
In FY 2022–2023, bilateral trade between Oman and India totaled $12.39 billion. From $2.25 billion in FY 2018–19 to $4.48 billion in FY 2022–23, India's exports to Oman have grown.
Stronger bilateral, political, strategic, and economic relations are advantageous not only for the people of India and Oman but also for the peace, security, and prosperity of the region, according to former Indian Ambassador Ashok Sajjanhar, who described Oman as one of the most dependable and steadfast partners of India in West Asia and welcomed the trade talks.
The Gulf Cooperation Council (GCC), which has six members—Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates—includes Oman. Oman is third among the GCC nations in terms of Indian goods and services exported. At the moment, a 5% import tariff is applied to 80% of Indian products.
Oman is probably going to be the second GCC member to establish a trade agreement with India, as India already has one with the UAE. An FTA has not yet been reached after negotiations between India and the GCC.
Sajjanhar stated that both countries might look at the model of the India-UAE FTA to come to an early resolution on this crucial matter, citing a stronger chance of an earlier FTA with Oman than with the GCC.
He did, however, add that regardless of the likelihood of other GCC members signing a separate free trade agreement with India, a FTA with the GCC would have greater relevance and value than the total of the individual member countries.
Former Indian Ambassador Anil Trigunayat described a potential trade agreement with Oman as a win-win situation for both parties, noting that there is a great deal of room for growth in inequitable market access through the institutionalization of trade under the guidelines of CEPA.
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He stated that another trade agreement with Oman might potentially serve as a model for the India-GCC FTA, pointing out that the current CEPA with the UAE has already demonstrated its effectiveness.
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