Economic Partnership Agreement Between India And Oman Reaches Advanced Stage: Official

Discussions for the proposed free trade agreement between India and Oman are at an advanced stage and both sides hope to conclude the pact early, according to a statement from Amit Narang, the Indian Ambassador to Oman, on Tuesday.

The pact will give a significant push to bilateral trade and investment ties between the two countries, he said.

The Comprehensive Economic Partnership Agreement is expected to enhance Indian exports to Oman by removing duties, particularly on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel.

"Discussions for a bilateral CEPA with Oman are at an advanced stage. We hope to conclude these discussions early and once this is done, this will be a significant push to bilateral, not just trade but also bilateral investment ties," Narang said.

Speaking at an event organised by FICCI, the Indian Ambassador to Oman also emphasised the substantial opportunity to improve direct shipping connections between the two countries, noting that a significant portion of Indian exports to Oman currently transit through the UAE.

He said the India-Oman bilateral trade, which crossed $12 billion in 2022–23, has moderated and settled at $8 billion in Fiscal 2024.

"Between 2021 and 2023, the bilateral trade between India and Oman more than doubled... we went from $5 billion to cross $12 billion."

Narang said the bilateral trade in the past financial year has moderated a little and settled to $8 billion, mainly on account of the overdominance of hydrocarbons in the bilateral trade.

"India imports a lot of oil and fertilisers from Oman and this decline in the value terms of the trade this year is a reflection of the decline in values of these two commodities globally," Narang said.

He pointed out that a large part of Indian exports to Oman come through the UAE and not directly and are not reflected in the India-Oman bilateral trade but in India's trade with the UAE, adding that there is potential for enhancing direct shipping links.

"Currently, I understand that there are two shipping lines... there is therefore huge potential for direct shipping to reduce the cost of bilateral trade and that will have a significant impact in further improving our bilateral trade figures," Narang said.

Addressing the event virtually, Indian Ambassador to the UAE Sunjay Sudhir said India will soon upgrade its political engagement with the Gulf Cooperation Council as a whole in the very near future.

The Gulf Cooperation Council brings together six Arab countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

"With ongoing efforts towards integration of our card system, instant payment platforms and messaging systems, the economies of India and the UAE will be more closely integrated in the future," Sudhir said.

He further emphasised that the GCC has become a key centre for innovation, with the UAE and Saudi Arabia at the forefront. He also noted that there is significant potential for enhanced collaboration in emerging fields such as artificial intelligence, healthcare, and space technology, which aligns with shared goals of prosperity and sustainable development.

(With Inputs From PTI)