New Delhi: The Union Cabinet on Friday approved a free trade agreement between India and Oman, which is expected to be signed during Prime Minister Narendra Modi’s visit to Oman on December 17-18, sources said.
Talks for the free trade agreement, officially termed as CEPA (Comprehensive Economic Partnership Agreement), formally began in November 2023 and the negotiations concluded this year.
Prime Minister Modi will embark on a four-day visit to Jordan, Ethiopia and Oman from December 15, according to an official statement. In the third and final leg of his visit, Modi will visit Oman on December 17-18 at the invitation of Sultan Haitham bin Tarik.
Commerce and Industry Minister Piyush Goyal is also expected to visit Oman for the signing of the pact.
In free trade agreements, the two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.
Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022.
The Shura Council or Majlis A’Shura of Oman on Wednesday concluded its deliberations on the draft CEPA. At the conclusion of the deliberations, the Council approved the agreement.
India-Oman bilateral trade was about USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25. India’s key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.
The main items of India’s exports to Oman include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships, boats and floating structures, electrical machinery, boilers, tea, coffee, spices, apparel, and food items.
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