Commerce and Industry Minister Piyush Goyal is set to embark on a trip to Muscat, Oman, starting Monday, with the aim of revitalizing discussions surrounding the free trade agreement (FTA) between India and Oman.
According to the commerce department, the advanced discussions on the India-Oman Comprehensive Economic Partnership Agreement (CEPA) are expected to gain additional momentum during Goyal’s visit. Both nations are working towards a CEPA that is commercially significant, balanced, equitable, ambitious, and mutually beneficial.
An official statement indicates that Goyal will spend two days in meetings with his Omani counterpart, Qais bin Mohammed bin Moosa al-Yousef, to cover a range of topics including trade, investment, and the current global economic climate.
This trip occurs amid negotiations for the proposed FTA that have encountered a standstill. Oman has requested amendments to India’s market access offer for certain products, despite negotiations reaching completion in March of the previous year. Revising India’s offer would necessitate restarting discussions among various ministries to clarify the country’s updated position.
One significant issue of concern has been the pressure on India to enhance market access for polyethylene and polypropylene—key intermediates in the production of plastics, medical devices, electronics, and automotive components. These petrochemical goods are currently subject to a 7.5 percent import duty in India.
Negotiations for the India-Oman FTA formally began in November 2023, and by January 2024, most chapters’ texts had been finalized. It was anticipated that the agreement would be signed soon after a new government took office in India in June. However, fresh requests from Oman for a revised offer have brought progress to a halt.
The statement further highlighted the significance India places on its trade and investment relationship with Oman, noted as a key trading partner within the Gulf Cooperation Council (GCC), with bilateral trade projected to exceed $8.94 billion in 2023-2024.
Additionally, during the visit, Goyal is likely to meet with Sultan bin Salim Al Habsi, the Minister of Finance and Chairperson of the Ministerial Committee for CEPA, as well as Sheikh Dr. Ali bin Masoud Al Sunaidy, President of the Public Authority for Special Economic Zones and Free Zones (OPAZ). He will also engage with representatives from Oman’s business community and the Indian diaspora.