India and Oman Forge Comprehensive Agreement: Implications for Investors and Businesses
The Sultanate of Oman and India are on the verge of finalizing a Comprehensive Economic Partnership Agreement (CEPA), according to Issa Saleh Abdullah Saleh Al Shibani, Oman’s Ambassador to India. Reports from the PTI news agency indicate that negotiations have been completed, and the necessary legislative and administrative procedures are currently underway.
Al Shibani expressed optimism regarding the timeline for signing the agreement, stating, “Hopefully… we will reach a stage of signature very soon.” Both nations aim to reduce or eliminate customs duties on a wide range of traded goods.
This proposed agreement is expected to not only increase trade in energy but also expand into various other commodities, as noted by Al Shibani. India’s primary imports from Oman consist of petroleum products and urea, which together represent over 70% of total imports. Other significant imports include propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.
Additionally, India’s Commerce Minister Piyush Goyal announced on September 19 that discussions surrounding a free trade agreement (FTA) with Oman are progressing well and may soon reach completion. He remarked, “As of now, we are at an advanced stage of dialogue with Oman (on FTA), which should conclude soon. Some other GCC countries have shown interest, and we will be engaging with them as well. If we assess that it will benefit the Indian economy, we are open to FTAs with other GCC nations too.”
Special Analysis by Omanet | Navigate Oman’s Market
The impending Comprehensive Economic Partnership Agreement (CEPA) between Oman and India signifies a pivotal shift towards diversifying trade beyond energy, ushering in new opportunities for businesses in various sectors. With potential reductions in customs duties, this agreement could unlock substantial trade efficiencies, enhancing competitive advantage for Omani exporters. For investors and entrepreneurs, the focus should be on sectors that will benefit from increased trade, such as agriculture, chemicals, and construction materials, positioning themselves strategically in this evolving landscape.
