PM in Oman, to sign free trade agreement today, Pg5

Key Highlights:

• India and Oman are set to sign a Comprehensive Economic Partnership Agreement (CEPA) on Thursday in Muscat.
• Talks for the free trade agreement began in November 2023 and concluded this year.
• Bilateral trade between India and Oman reached US$ 10.61 billion in FY 2024-25.
• India is Oman’s fourth-largest source of non-oil imports and third largest market for non-oil exports in FY 2024-25.

Detailed Insights:

• The CEPA aims to significantly reduce or eliminate customs duties on a maximum number of goods traded between the two countries.
• The agreement also seeks to ease norms to promote trade in services and attract investments between India and Oman.
• Oman is signing a FTA after about 20 years, with the last agreement signed with the US in January 2006.
• Potential areas for increased cooperation include textiles, footwear, auto components, gems and jewellery, agrochemicals, and renewable energy.
• Collaboration opportunities also exist in services sectors like chartered accountants, R&D, tourism, healthcare, and education.
• The four prominent areas of collaboration are energy transition, infrastructure development, food security, and startups.
• Key exports from India to Oman include light oil, aluminum oxide, rice, boilers and machinery, and aircraft components.
• Key imports from Oman to India include crude petroleum, LNG, urea, organic chemicals, ammonia, industrial raw materials, and plastics.
• There are over 6,000 India-Oman Joint Ventures in Oman, adding US$ 7.5 billion to Oman's economy.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A type of trade agreement that aims to reduce or eliminate tariffs and promote trade in goods, services, and investments between two or more countries.
• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas, to encourage trade and economic cooperation.
• Bilateral Trade: Trade between two countries.