India may soon sign a free trade agreement with Oman (Oman), the region’s oldest strategic partner. Those who know the development said the talks to the Indian FTA were almost complete, and the news was expected to be released this month. The people said New Delhi “seriously considered” similar conventions with other Gulf countries such as Qatar. Qatar, which has remained neutral during the India-Pakistan conflict, visited New Delhi in February and hopes to make a large investment in India.
India has reached a trade agreement with the UAE. It is also negotiating the FTA with the Gulf Cooperation Council (GCC) to further strengthen cooperation with the region on trade, energy, investment and security. The Gulf Cooperation Council includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. Talks to the Indian Male Integrated Economic Partnership Agreement (CEPA) began in November 2023.
One person quoted above said: “Only a few issues can be resolved through Oman and an announcement can be issued this month.”
India’s exports to Oman reached US$4.42 billion during February 5, while imports amounted to US$4.52 billion. India’s main imports are petroleum products and urea – accounting for more than 70% of the import bill.
Propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel are another key import of the Gulf countries. Its main exports to Oman are light oils and preparations. Vessels, vessels and floating structures; alumina apart from artificial Congo; rice; boilers, machinery and machinery, parts; aircraft and other aircraft; sunglasses; meat and edible meat; bird eggs; fruits, vegetables, spices, tea and coffee. The two sides also signed an agreement to amend the Indian Women’s Double Tax Avoidance Agreement (DTAA) to align it with international standards for transnational taxation. Investment flows in both ways are strong, reflected in many joint ventures in the two countries.
As of December 2023, such joint venture investment in Oman is estimated to be US$776 million. According to the fact table of the Indian Embassy in Oman, the inflow of foreign direct investment from April 2000 to June 2024 from April 2000 to June 2024 was US$597.1 million from April 2000 to June 2024.
