Discussions between India and Oman on a proposed free trade agreement (FTA) are nearing completion, with both nations hopeful for an early finalization, according to Indian Ambassador to Oman, Amit Narang. This agreement, officially known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to significantly enhance trade and investment between the two countries.

The CEPA aims to boost Indian exports to Oman by removing tariffs on various goods, including petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. The agreement is anticipated to provide a major boost to bilateral trade and investment, strengthening economic ties between the two nations.

Narang highlighted that the CEPA negotiations are in their final stages and are expected to conclude soon. He emphasized that this agreement would not only enhance trade but also improve investment relations between India and Oman.

During an event organized by Ficci, Narang also discussed the potential for expanding direct shipping routes between India and Oman. Currently, a significant portion of Indian exports to Oman transit through the UAE, which affects the direct trade figures between the two countries. Enhanced direct shipping links could reduce costs and further boost bilateral trade.

India-Oman trade reached USD 12 billion in the fiscal year 2022-23 but has since moderated to USD 8 billion in FY24. This decline is attributed to the global drop in the value of oil and fertilizers, which are major imports from Oman. Narang noted that the trade figures are affected by the high volume of hydrocarbons and other commodities in the trade balance.

Indian Ambassador to the UAE, Sunjay Sudhir, who spoke at the same event, mentioned that India plans to upgrade its political engagement with the Gulf Cooperation Council (GCC) soon. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Sudhir highlighted ongoing efforts to integrate financial systems and enhance cooperation in sectors such as artificial intelligence, healthcare, and space technology. These advancements aim to deepen economic and technological collaboration between India and the GCC countries.

UAE Merchants Accept UPI for Rupee Payments to Attract Indian Shoppers

PM Modi Visits Ukraine: Diplomatic Talks, Peace Efforts, and Trade Partnerships on Focus

Ukrainian Incursion into Kursk Boosts Morale Amidst Challenging Times