India, Oman hold fifth round of talks for proposed free trade agreement

India and Oman are holding the fifth round of talks for a proposed free trade agreement here to boost bilateral economic ties, an official said on Tuesday.

The two-day talks started on January 13, the official said.

The negotiations for the agreement, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023.

Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries.

According to the think tank GTRI (Global Trade Research Institute), Indian goods worth $ 3.7 billion like gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.

Currently, over 80 per cent of its goods enter Oman at an average of 5 per cent import duties, a GTRI report has said.

Oman's import duty ranges from 0 to 100 per cent, along with the existence of specific duties. A duty of 100 per cent is applicable on specific meats, wines and tobacco products.

India already has a similar agreement with another GCC member UAE which came into effect in May 2022.

On the imports front, India's merchandise imports from Oman dipped to $ 4.5 billion from $ 7.9 billion in 2022-23.

Key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

The bilateral trade stood has declined to $ 8.94 billion in 2023-24 from $ 12.39 billion in 2022-23. India's exports stood at $ 4.42 billion in the last fiscal.

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.