The ongoing negotiations for the proposed free trade agreement (FTA) between India and Oman are progressing rapidly and the agreement is expected to be signed next month, according to a senior government official. This FTA is likely to benefit various export sectors such as motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils, and motor cars. These goods currently face a 5% import duty in Oman. However, Indian exports of wheat, medicines, basmati rice, tea, coffee, and fish, which already have duty-free access to Oman, will not see additional benefits from this agreement.
Oman’s import duty ranges from 0 to 100%, with a duty of 100% on specific items such as meats, wines, and tobacco products.
The negotiations on most of the chapters have been concluded by both sides. With the conclusion of this agreement, India will have the potential to export products like light oils and preparations of petroleum and bituminous minerals, medicaments, parts and accessories for motor vehicles, iron ores and concentrates, ferrous products obtained by direct reduction of iron ore, and aluminium to Oman.
Oman is India’s third-largest export destination among the Gulf Cooperation Council (GCC) countries. Similar agreements are already in place between India and other GCC members like UAE. In terms of imports, India’s merchandise imports from Oman were worth over USD 250 million. This FTA has the potential to boost trade between the two countries significantly.