India, Oman make progress on free trade agreement
- Sultan Haitham bin Tarik is on his first visit to India since becoming Oman’s head of state in 2020 -
New Delhi: A comprehensive economic agreement, a fresh tranche of investments, and the possibility of establishing bilateral rupee trade featured in talks between India and Oman on Saturday, during the state visit of Oman’s ruler, Sultan Haitam bin Tarik. This was the first visit by an Omani ruler to India since 1997.
“Although the negotiations on CEPA (Comprehensive Economic Partnership Agreement) have started only recently, they have made substantial progress in the last few rounds of discussion and both leaders gave strong impetus and push to conclude the CEPA agreement as soon as possible,” said foreign secretary Vinay Mohan Kwatra at a press briefing in New Delhi.
According to the Global Trade Research, a free trade agreement could notably boost Indian exports, with over 80% of Indian goods currently entering Oman at an average of 5% import duties. Key sectors like motor gasoline, textiles, electronics, machinery, and iron and steel will likely benefit from duty elimination.
Bilateral trade in 2022-23 stood at around $12.3 billion.
Kwatra also announced the release of the third tranche of the Oman India Joint Investment Fund, totalling $300 million. This fund, a joint venture between the State Bank of India and the Oman Investment Authority, aims to channel investments into India's rapidly growing sectors.
Discussions between the two nations, Kwatra said, touched upon financial technologies and the possibility of establishing rupee trade, currently in an exploratory phase. The talks also extended to space cooperation, focusing on services, satellite building and launching, and capacity building, as well as cooperation in green hydrogen and renewable energy.
Oman and India also discussed the current crisis in West Asia and the strategic utilization of Oman's Duqm port by Indian navy ships for logistical and humanitarian purposes.