India and Oman to Hold Fifth Round of Discussions for Intended Free Trade Deal

An official said on that India and Oman are holding the fifth round of talks on a proposed free trade deal to strengthen bilateral economic ties.

The two-day negotiations began on January 13, according to the official.

The discussions for the pact, officially known as the Comprehensive Economic Partnership pact (CEPA), began in November 2023.

Oman is the third-largest export destination among Gulf Cooperation Council (GCC) countries.

According to the think tank GTRI (Global Trade Research Institute), Indian commodities worth $3.7 billion, such as fuel, iron and steel, electronics, and machinery, will see a major increase in Oman once both sides complete a comprehensive free trade deal.

According to a GTRI report, more than 80% of its items now enter Oman with an average import duty of 5%.

Oman's import duties range from 0% to 100%, plus additional special levies. Certain meats, wines, and tobacco goods are subject to a 100% charge.

India already has a similar deal with another GCC member, the UAE, which went into effect in May 2022.

On the import front, India's merchandise imports from Oman fell to $4.5 billion from $ 7.9 billion in 2022-23.

The most important imports are petroleum products and urea. These account for more than 70% of imports. Other important products include propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

The bilateral trade amounted at $8.94 billion in 2023-24, down from $12.39 billion in 2022-23. India's exports in the past fiscal year totaled $4.42 billion.

In such agreements, two trading partners either considerably lower or abolish customs charges on a specified amount of items exchanged between them. They also relax regulations to encourage commerce in services and attract investments.