Oman FTA to facilitate easier flow of capital, professionals

ALMOST ALL EXPORTS from India to Oman will be at zero duty after the trade agreement signed on Thursday between the two countries comes into force by March, with farm goods, textiles, engineering, electronics, chemicals and auto sectors among the major beneficiaries.

- MUKESH JAGOTA

The Comprehensive Economic Partnership Agreement (CEPA), signed by Commerce and Industry Minister Piyush Goyal and Oman's Minister of of Commerce, Industry and Investment Promotion Qais Al Yousef in the presence of Prime Minister Narendra Modi and Sultan of Oman Haitham bin Tariq opens up the opportunity to increase India's exports to Oman by 50% in next 2-3 years.

In 2024-25, India's exports to Oman stood at $4.1 billion, and its imports were over $6.5 billion. It is expected to come into force in the first quarter of 2026 as it would need to be ratified and then different tariff schedules will have to be notified.

TRADE EXPERTS SAID the significance of the deal is more than what the current trade suggests, as it would help strengthen New Delhi's economic and geopolitical presence at the mouth of the Gulf."The CEPA would deepen Indian companies' role in Omani logistics and supply chains, and will be in sync with India's wider strategy on energy, services, and regional connectivity," according to think tank GTRI.