(MENAFN- KNN India)
New Delhi, Jan 15 (KNN) India and Oman commenced their fifth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) on January 13, marking another step forward in their bilateral trade relations.
According to an official, The two-day discussions follow the formal initiation of trade agreement talks in November 2023, reflecting both nations' commitment to strengthening their economic ties.
Oman holds a strategic position as India's third-largest export destination among Gulf Cooperation Council countries.
According to the Global Trade Research Institute (GTRI), the proposed agreement could substantially benefit Indian exports, particularly in sectors such as gasoline, iron and steel, electronics, and machinery, with potential gains estimated at USD 3.7 billion.
Currently, Indian goods face an average import duty of 5 percent in Oman, affecting over 80 percent of exports to the country.
The Omani tariff structure presents a complex landscape, with duties ranging fr0m zero to 100 percent, including specific duties on certain products.
The highest rate of 100 percent applies to select items including specific meats, wines, and tobacco products. This agreement follows India's similar successful partnership with the UAE, which was implemented in May 2022.
Recent trade data indicates a decline in bilateral commerce, with total trade falling to USD 8.94 billion in 2023-24 fr0m USD 12.39 billion in the previous fiscal year.
India's merchandise imports fr0m Oman experienced a significant decrease, dropping to USD 4.5 billion fr0m USD 7.9 billion in 2022-23.
The trade relationship centres primarily on petroleum products and urea, which constitute over 70 percent of India's imports fr0m Oman, alongside other significant items such as polymers, pet coke, gypsum, chemicals, and iron and steel.
The proposed comprehensive agreement aims to substantially reduce or eliminate customs duties on traded goods while also facilitating services trade and investment flows between the two nations.
This negotiation represents a crucial step in deepening the economic partnership between India and Oman, potentially opening new avenues for bilateral commerce and economic cooperation.
(KNN Bureau)
MENAFN15012025000155011030ID1109094736
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.