India Advances Free Trade Talks with Oman, Eyes GCC Alliances

India is close to finalizing a Free Trade Agreement with Oman and is open to similar deals with other GCC countries. This move is seen as a boost to sectors like energy and fintech. Minister Piyush Goyal highlighted significant investment interest from the UAE in Indian industries.

Union Minister of Commerce and Industry Piyush Goyal announced on Friday that India is nearing the final stages of negotiating a Free Trade Agreement (FTA) with Oman, with an openness to form similar partnerships with other Gulf Cooperation Council (GCC) nations. His remarks came during a visit to the United Arab Emirates (UAE) where he attended the 13th UAE-India High-Level Joint Task Force meeting on Investments. Goyal told the media, "We are at an advanced stage of dialogue with Oman on the FTA, which should conclude soon. Other nations have shown interest, and we are surely open to FTAs with more GCC countries."

The GCC, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, stands as one of India's largest trading partners. Concluding FTAs with these countries is expected to boost collaboration across energy, infrastructure, fintech, logistics, renewable energy, and food security sectors. Data indicates that the GCC is India's largest trading bloc with bilateral trade in FY 2021-22 exceeding USD 154 billion, with exports around USD 44 billion and imports at USD 110 billion.

Goyal's trip included participation in the 13th High-Level Task Force on Investments and meetings with UAE government officials and business leaders, including the Abu Dhabi Chamber of Commerce and Industry. He also co-chaired a roundtable with Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of Foreign Trade, involving high-level industry delegates and the UAE-India Business Council (UIBC). Goyal remarked on the thriving trade ties, saying, "We've elevated our ambitions for non-oil, non-precious metal trade to USD 100 billion within the next three years."

The Minister noted significant UAE investment interest in Indian data centres, startups, logistics, and renewable energy. He highlighted the Bharat Mart project in the UAE as transformative for Indian small businesses. "Bharat Mart will be a game changer for our MSME sector, allowing small businesses to expand their export opportunities," he claimed. Construction is set to begin later in the year, with operations projected to start by 2027.

Goyal held key discussions with UAE's National Security Advisor Sheikh Tahnoun bin Zayed Al Nahyan and senior leaders on economic matters. He also met Mohamed Hassan Al Suwaidi, UAE's Minister of Investment, and discussed innovation with tech leader Peng Xiao, CEO of G42, known for advancements in genomics and AI.

(With inputs from agencies.)