India Concludes Free Trade Agreement Negotiations With Oman

India Concludes Free Trade Agreement Negotiations With Oman

India: The Indian government has announced the conclusion of negotiations for the India-Oman Comprehensive Economic Partnership Agreement (CEPA), aimed at enhancing bilateral trade and investment. The talks, which began in November 2023, will see both countries reduce or eliminate customs duties on a wide range of goods, ease norms for services trade, and promote investment flows. Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) nations. India already has a similar agreement with the UAE, which came into effect in May 2022. The government stated that although tariff reductions under such agreements may temporarily affect revenue, the impact is expected to be offset in the medium to long term through increased trade, investment, and economic growth.

India has so far signed 15 free trade agreements and six preferential trade agreements, including five since 2020 with Mauritius, the UAE, Australia, the European Free Trade Association (EFTA), and the UK. Officials highlighted that free trade agreements are designed to ensure fairness, reciprocity, and protection for domestic industries through sensitive and exclusion lists, as well as trade remedial measures like anti-dumping duties in case of import surges. The government added that sector-specific consultations are held at every stage of negotiations to safeguard the interests of farmers, MSMEs, and other stakeholders, with the broader objective of supporting industry, employment, and overall economic growth.

Source: Deccan Herald