Is India-Oman Free Trade Pact on the Horizon?
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Synopsis
In a significant development, Commerce Minister Piyush Goyal hints at a possible free trade agreement with Oman. As negotiations advance, this pact could reshape trade dynamics and strengthen economic ties between the two nations. Stay tuned for updates that may enhance bilateral cooperation and open new avenues for trade.
Key Takeaways
- India and Oman are progressing towards a free trade agreement.
- Discussions focus on enhancing cooperation in multiple sectors.
- Oman is a crucial trade partner for India within the GCC.
- Amendments to the Double Taxation Avoidance Agreement have been signed.
- The CEPA could significantly increase bilateral trade and investment.
Paris, June 2 (NationPress) The Minister of Commerce and Industry, Piyush Goyal, has revealed that India may soon finalize a free trade agreement (FTA) with Oman, as discussions between the two nations are progressing positively. “You can expect some favorable news shortly regarding the Oman FTA,” the minister shared with reporters in Paris.
Piyush Goyal is currently on an official visit to France aimed at enhancing trade and investment opportunities and is scheduled to participate in a World Trade Organisation (WTO) ministerial meeting on Tuesday.
The negotiations for the FTA commenced in November 2023, following Goyal's visit to Oman from January 27 to January 28. During this trip, he co-chaired the 11th Session of the India-Oman Joint Commission Meeting alongside Qais bin Mohammed Al Yousef, the Omani Minister for Commerce, Industry, and Investment Promotion. This meeting facilitated fruitful discussions on strengthening bilateral cooperation across various sectors including trade, investment, technology, food security, and renewable energy.
The ministers also deliberated on a bilateral Comprehensive Economic Partnership Agreement (CEPA), which is nearing completion. Both parties agreed to accelerate negotiations to formally sign the CEPA, marking a significant advancement in bilateral trade relations that could greatly enhance two-way trade and investment.
Additionally, Goyal held an impactful bilateral meeting with Minister Qais, where they reviewed the current state of trade and economic relations between India and Oman, identifying actionable steps to enhance their mutually beneficial business partnership.
On the sidelines of this visit, both nations signed a protocol to amend the India-Oman Double Taxation Avoidance Agreement (DTAA), bringing it in line with international standards on cross-border taxation, streamlining tax procedures, and fostering enhanced cooperation in tax matters.
Oman stands as the third-largest export market for India within the Gulf Cooperation Council (GCC), with bilateral trade reaching approximately USD 10.5 billion, consisting of USD 4 billion in exports and USD 6.54 billion in imports for the fiscal year 2024-25.
Point of View
The move towards a free trade agreement with Oman signifies India's commitment to strengthening economic ties within the Gulf region. This strategic partnership not only aims to enhance trade volumes but also fosters deeper cooperation in critical sectors, showcasing India's proactive approach to global trade dynamics.
NationPress
21/09/2025
Frequently Asked Questions
What is the status of the India-Oman free trade agreement?
The India-Oman free trade agreement is in advanced stages of negotiation, with expectations of a signing soon.
What are the key sectors discussed in the India-Oman meetings?
The discussions have focused on trade, investment, technology, food security, and renewable energy.
How significant is Oman for India's exports?
Oman is the third-largest export destination for India among the GCC countries, with bilateral trade valued at about USD 10.5 billion.
