Good news very soon on India-Oman trade agreement: Goyal

By Admin

03 Jun, 2025

In a significant development for India’s international trade landscape, Commerce and Industry Minister Piyush Goyal has announced that the negotiations for a Free Trade Agreement (FTA) between India and Oman are progressing rapidly, with some “good news” expected very soon.

CEPA Talks Gain Momentum

The proposed pact, officially titled the Comprehensive Economic Partnership Agreement (CEPA), was formally launched in November 2023. A major push came after Minister Goyal’s visit to Muscat in January 2024, which provided the much-needed momentum to the discussions.

Speaking to reporters during his official visit to France, where he is engaging with French leaders and businesses and is scheduled to attend the mini-ministerial WTO meeting on June 3, Goyal expressed optimism. “I think you will see some good news very soon on the Oman FTA,” he said when asked about the potential conclusion of the trade pact within this year.

Why the India-Oman CEPA Matters

FTAs like CEPA are pivotal in promoting bilateral trade and investment. These agreements aim to either eliminate or significantly reduce customs duties on a vast range of traded goods. Additionally, they ease regulatory norms, boost services trade, and encourage foreign direct investments by creating a more predictable policy environment.

Oman holds particular importance as India’s third-largest export destination among the Gulf Cooperation Council (GCC) countries. India already has a CEPA in place with another GCC nation, the UAE, which became effective in May 2022.

Trade Snapshot: India and Oman

In FY 2024-25, the bilateral trade between India and Oman stood at approximately $10.5 billion, comprising $4 billion in exports from India and $6.54 billion in imports from Oman. India’s key imports from Oman include:

• Petroleum products
  
  

• Urea
  
  

• Polymers of propylene and ethylene
  
  

• Petroleum coke (pet coke)
  
  

• Gypsum
  
  

• Chemicals
  
  

• Iron and steel
  
  

Notably, petroleum products and urea alone account for over 70% of the imports.

FTAs: Catalysts for Broader Growth

Minister Goyal highlighted the broader significance of such agreements. Beyond trade, FTAs help in strengthening supply chains, build confidence in long-term policies, and increase stability and predictability for businesses on both sides.

“So in a way, it’s a big message when you conclude an FTA,” he remarked.

When asked whether FTAs can lead to domestic policy changes or reforms, Goyal clarified that such agreements are distinct from internal reforms. “These agreements are more towards opening markets on both sides which lead to greater competitiveness, improved productivity and efficiency in all processes,” he noted.

A Boost for Manufacturing

Further underscoring the government’s pro-manufacturing stance, Goyal mentioned the upcoming National Manufacturing Mission, announced during the Union Budget. This initiative will foster deeper cooperation between the Centre and state governments, driving an “orderly shape” to India’s industrial growth ambitions.

Conclusion

The impending conclusion of the India-Oman CEPA is a strong signal of India’s growing global economic engagement, especially within the Gulf region. As negotiations near the finish line, stakeholders from both nations eagerly anticipate a deal that could usher in a new era of trade dynamism, investment flow, and strategic cooperation.