India and Oman Seal Groundbreaking Free Trade Agreement

The Union Cabinet has approved a free trade agreement between India and Oman, expected to be signed during Prime Minister Narendra Modi's visit to Oman in December. The agreement aims to expand trade by addressing customs duties and promoting investments, reinforcing Oman's position as India's third-largest export destination among GCC countries.

The Union Cabinet has given the green light for a free trade agreement between India and Oman, slated for signature during Prime Minister Narendra Modi's visit to Oman on December 17-18.

This pact, known as the Comprehensive Economic Partnership Agreement (CEPA), marks a significant step forward in the India-Oman trade relationship, with formal negotiations having commenced in November 2023 and concluding this year. Commerce and Industry Minister Piyush Goyal is also set to accompany the Prime Minister for the ceremony.

The agreement intends to reduce or eliminate customs duties on most goods traded between the two nations and simplify regulations to enhance trade in services and investments. Notably, Oman is India's third-largest export market among Gulf Cooperation Council countries, holding a vital role in bilateral trade valued at USD 10.5 billion for 2024-25.

(With inputs from agencies.)