India-Oman FTA talks advance further

The trade and commerce ministers of India and the Sultanate of Oman reviewed the progress of a proposed free trade agreement (FTA) between both countries this week.

Indian trade minister Piyush Goyal and his Oman counterpart Qais bin Mohammed Al Yousef focused on advancing the negotiations for the pact during their meeting in Muscat on Monday.

“Our talks focused on advancing negotiations on the Comprehensive Economic Partnership Agreement (CEPA), strengthening trade and investment ties, and exploring avenues to further deepen our bilateral partnership,” Goyal said in a post on X.

Goyal was in Muscat for a key joint commission meeting held on Tuesday 28 January.

Honoured to call on H.H. Sayyid Asa’ad bin Tarik Al Said, Deputy Prime Minister for International Relations and Cooperation Affairs of Sultanate of Oman.

Appreciated his guidance on strengthening the multifaceted partnership between India and Oman and exploring opportunities… pic.twitter.com/cJHXLWy8iK

— Piyush Goyal (@PiyushGoyal) January 28, 2025

The negotiation round on CEPA began in November 2023. Earlier this month, on 14 January, India and Oman held the fifth round of talks for the agreement, aiming to boost bilateral economic ties.

In such agreements, both partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them, while also easing rules to boost trade in services and attract investments.

The Sultanate is the third largest export destination among the six Gulf Cooperation Council (GCC) countries for India.

India already has a similar agreement with the United Arab Emirates that came into effect in May 2022.

During his visit, Goyal also met Sheikh Dr. Ali bin Masoud Al Sunaidy, president of special economic zones and Free Zones Oman.

Bilateral trade declined in fiscal 2024 to $8.94 billion (exports of $4.42 billion and imports of $4.5 billion)  from $12.39 billion (exports at $4.47 billion and imports at $7.91 billion) in fiscal 2023.

Petroleum products and urea account for over 70% of India’s imports from Oman, with other key products being propylene and ethylene polymers, pet coke, gypsum, and chemicals.