Strengthening economic ties between India and Oman are set to receive a significant boost with the imminent signing of a comprehensive free trade agreement (FTA). Both nations expect to finalize the deal by January 2024, marking a crucial step in boosting bilateral trade and fostering closer economic cooperation.

Fast-Tracked Negotiations:

Officials from both sides report significant progress in concluding the FTA negotiations, with most chapters already finalized. This rapid progress stems from mutual enthusiasm for the agreement, fueled by the potential for enhanced trade flows and economic diversification. An Indian Commerce Department official remarked, “With Oman, there is very good progress and both sides are very eager to conclude this deal.”

Boosting Bilateral Trade:

Currently, Oman ranks as India’s third largest trading partner among the Gulf Cooperation Council (GCC) nations. Trade volumes have already witnessed a surge in recent years, rising from US$5 billion in 2018-19 to US$12.39 billion in 2022-23. The FTA is expected to further propel this growth by eliminating or reducing tariffs on a wide range of goods and services.

Key Takeaways:

• India and Oman on the verge of signing a comprehensive FTA.
• Signing slated for January 2024.
• Agreement set to bolster bilateral trade and economic ties.
• Expected to eliminate or reduce tariffs on various goods and services.

Looking Ahead:

The upcoming FTA signifies a significant development in India’s efforts to strengthen economic partnerships with key nations in the Middle East. It is expected to not only generate economic benefits for both countries but also pave the way for further collaborations in diverse sectors. As the signing date approaches, businesses and investors in both India and Oman will be closely monitoring the details of the agreement and its potential impact on their respective markets.