NEW DELHI: The negotiations on the free trade agreement (FTA) between India and Oman could be concluded very soon, Commerce and Industry Minister Piyush Goyal said on Monday.
“I think you will see some good news very soon on the Oman FTA,” the minister told reporters here when asked if the FTA with Oman can be concluded this year.
Two weeks back an official had said agreement has been reached on most of the issues in the FTA and only the issue of protection that can be offered to India from the frequent changes in Omanisation policy of Oman.
Under the Omanisation policy, Oman mandates that companies employ a specific percentage of local workers, This percentage varies across various industries and job roles and undergoes frequent revisions. Companies that meet those targets get favourable treatment by the government. Failure to meet targets invites penalties including fines, restrictions on obtaining new visas for expatriates and even revocation of existing work permits.
India wants that the target for Omanisation be frozen at current levels for Indian companies and that it be put in the FTA – which is formally called Comprehensive Economic Partnership Agreement (CEPA), the official had said.
Negotiations on CEPA with Oman, that started November 2023, were completed in March 2024. Signing was expected to be completed before 2024 general elections, but discussions continued as more issues cropped up.
The CEPA with Oman goes beyond what has been signed with the UAE in terms of scope and liberalisation. With the 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. 100% duty is applicable on specific meats, wines and tobacco products.
To give the boost to the discussions on the trade deal Commerce and Industry Minister Piyush Goyal had visited Muscat in the last week of January. During the visit he attended the 1th Session of the India-Oman Joint Commission Meeting (JCM) and also met the top leadership. On the sidelines of the visit both countries also signed the protocol to amend the Double Taxation Avoidance Agreement (DTAA).
Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries. India’s exports to Oman stood at $ 443 billion in 2024-25 while imports exceeded $ 6.51 billion. Major Indian exports to Oman are petroleum products, engineering goods, minerals and chemicals. Major imports from Oman are petroleum, fertilisers, chemicals and plastics.
Source: The Financial Express
