The signing of the proposed free trade agreement (FTA) between India and Oman is likely in less than three months, a government official privy to the development said on August 9.
"Negotiations have concluded. The singing is delayed because the text of the trade pact had to be translated into Arabic and now legal scrubbing of the translated document is going on. After that, the cabinets of both countries will approve the agreement," the official said.
Unlike the trade deal with the United Kingdom, where conclusion of talks and the signing were announced separately. In the India-Oman trade deal, both countries have, in principle, decided to announce the conclusion and signing together, according to the official.
When asked if it would take two to three months, the official said it would take "much less" than that.
The talks for the agreement, officially termed the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023. In such agreements, 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 among the Gulf Cooperation Council (GCC) countries for India. India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022.
The bilateral trade was at least USD 10 billion (exports USD 4.06 billion and imports USD 6.55 billion) in 2024-25.
India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other major products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.
The official further said the Indian government is exploring markets in West Asia and Europe for its labour-intensive products to cushion the impact of the steep tariffs imposed by the US. The hike, announced by President Donald Trump and effective in two phases—August 7 and August 27—is expected to impact $50–55 billion worth of Indian exports, industry estimates suggest.
The move specifically affects India’s labour-intensive exports such as textiles, shrimps, organic chemicals, carpets, and gems and jewellery, where India now faces some of the highest effective tariff rates in the world.
"India is open for separate FTAs with Gulf Cooperation Council (GCC) members. Meanwhile, trade negotiations with the 27-nation bloc European Union are going on well and the next round of talks is scheduled in September," the official said.
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