India is poised to finalize a free trade agreement (FTA) with Oman within the first 100 days of Prime Minister Narendra Modi’s third term. The Prime Minister emphasized the potential for enhanced strategic ties during a review meeting chaired by Commerce Minister Piyush Goyal.
Negotiations between India and Oman on the FTA were nearing completion during Modi’s previous term. However, the enforcement of the model code of conduct for the Lok Sabha polls halted the process in March. Officials familiar with the matter revealed that the deal is nearing conclusion, pending formal approval from both sides.
Just before the elections, India inked an FTA with four European nations, pledging significant investment in India to generate direct employment opportunities. Officials confirmed the preparation of necessary draft documents for the FTA with Oman, describing it as an ongoing process. Oman’s ruler also congratulated Prime Minister Modi on his third term, emphasizing the enduring strategic relationship between the two nations.
Once finalized, the FTA with Oman will mark a significant bilateral achievement for Modi’s third term and the fourth since 2022. The agreement is expected to bolster India’s energy security, ensure affordable fertilizer supply, and attract foreign investments. Additionally, it will facilitate reduced prices for Indian exports to Oman, encompassing various commodities such as rice, tea, coffee, spices, dairy products, and machinery.
The momentum for FTA discussions heightened following a meeting between bin Tarik and Modi in December 2023. The proposed Comprehensive Economic Partnership Agreement (CEPA) was a focal point during their discussions. Both countries are committed to enhancing trade and investment ties, as evidenced by the decision to establish dedicated desks for investment promotion.
India and Oman share deep-rooted historical and strategic connections, fostering bilateral trade and investment relations since 1955. Recent data from the commerce ministry indicates significant growth in bilateral trade, reaching $12.39 billion in 2022-2023. This upward trajectory underscores the mutually beneficial nature of the partnership.