India, Oman Set to Finalize Free Trade Agreement: Official

Swift Summary

• India-Oman Trade Agreement: A free trade agreement (complete Economic Partnership Agreement – CEPA) between India and Oman is expected to be finalized and announced soon.
• Progress Update: the official text of the agreement is currently being translated into Arabic in Oman, following which it will be approved by both countries’ cabinets.
• timeline: officials have indicated that the proclamation will take place in much less than two to three months.
• Background on CEPA Negotiations: Formal talks for this agreement began in November 2023,aimed at reducing or eliminating customs duties on goods and easing trade norms for services and investments.
• Trade Context with Oman: Bilateral trade between india and oman exceeded $10 billion (exports: $4.06 billion; imports: $6.55 billion) in 2024-25, with key Indian imports including petroleum products, urea, chemicals, iron/steel items, etc.
• Regional trade Dynamics: Oman ranks as India’s third-largest export destination among GCC nations. India already has a similar trade pact with another GCC member-the UAE-that became effective in May 2022.

Indian opinion Analysis

The anticipated finalization of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) represents a significant step forward in enhancing India’s economic ties within the Gulf region-an increasingly vital trading partner bloc due to its energy resources and strategic geography. As one of India’s key export destinations within GCC countries, Oman’s inclusion reflects new Delhi’s focused strategy to expand regional partnerships while leveraging existing synergies seen under comparable agreements like that with the UAE.

By facilitating reduced tariffs alongside streamlined service exchange protocols, such agreements may further boost bilateral economic activity beyond current levels ($10 billion annually). Given Oman’s role as a critical supplier of petroleum products-comprising over 70% of Indian imports from there-the deal could help stabilize resource availability while opening doors for greater diversification through investment flows or non-oil exports.

From a geopolitical lens, deepened engagement enhances India’s Middle Eastern influence amidst growing global competition for stronger Gulf ties-a relevant consideration for energy security and diversified market access alike.

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