The India-Oman free trade pact has gained approval of Muscat’s lower house, the Shura Council, sources said.
It is now expected to be taken up by the Union Cabinet for its consideration on Friday, thereby paving the way for Prime Minister Narendra Modi and Union Commerce and Industry Minister, Piyush Goyal, to travel to Oman next week to formally sign the Comprehensive Economic Partnership Agreement (CEPA), the sources added.
Prime Minister Modi is also expected to visit Jordan, Ethiopia, and Oman this month.
The commerce ministry on Wednesday stated that following approval of the competent authority, the Draft Cabinet Note for signing and ratification was circulated to relevant ministries.
Oman’s Shura Council or Majlis A’Shura also concluded on Wednesday its deliberations on the draft CEPA, following which the agreement was approved by the Council.
In India, FTAs are cleared by the Union Cabinet, and in Oman, Consultative Council is the democratically elected lower house of Oman. Both sides are now in the process of securing internal approvals.
The talks for the agreement had formally begun in November 2023 and concluded this year.
Also Read: Trade talks with Oman, NZ in final stages: Goyal
Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. While India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022, CEPA involves two trading partners to either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.
India-Oman bilateral trade was about USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25 with key imports from India being petroleum products and urea, accounting 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.
According to a report by think tank GTRI, Indian goods such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach an agreement. These goods at present face a 5 per cent import duty in Oman.
About 16.5 per cent of Indian exports to Oman, worth about USD 800 million and goods that already have duty-free access, the report has said. These items include wheat, basmati rice, fruits, vegetables, medicines, fish, tea, and coffee.
Further, India’s services exports are also expected to gain from the pact.
With a population of 1.4 billion compared to Oman’s over 5 million, India represents a vast consumer market for Oman.
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