After conclusion of negotiations on the free trade agreement (FTA), Oman’s request to reconsider some of the concessions that it had earlier conceded to is being discussed, a senior official said, adding that changes sought by Oman are minimal.
Negotiations on FTA with Oman that started November 2023 were concluded in March 2024. The signing of the pact was expected to be completed before general elections in India last year, but the request for review from Oman delayed it.
Some of the areas (cigarettes and liquor) where Oman has sought a review are not of much interest to India. Apart from these two, there are 125-130 product categories where no concessions have been sought, the official said, adding that both the sides have already discussed three-four issues flagged by Oman. The last meeting was held on January 14.
The FTA with Oman goes beyond what has been signed with the UAE in terms of scope and liberalisation. With the FTA – officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) – India will get access to 98% of its products in Oman and significant access in services.
Oman’s import duty ranges from 0% to 100% along with the existence of specific duties. The 100% duty is applicable on specific meats, wines and tobacco products.
In 2023-24, India’s trade with Oman was $8.9 billion, down 27.7% on year. India’s exports stood at $4.2 billion and imports at $4.5 billion. The fall was largely due to a 42.8% decline in imports due to the decline in trade of fertilisers and petroleum.
Oman is the third-largest export destination among the Gulf Cooperation Council countries.
According to think tank GTRI (Global Trade Research Institute), Indian goods worth $3.7 billion such as gasoline, iron and steel, electronics and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.
Currently, over 80% of Indian goods enter Oman at an average of 5% import duty, a GTRI report has said.