 "Prime Minister Narendra Modi meets Sultan of Oman Haitham Bin Tarik")
India may be finalising a Free Trade Agreement (FTA) with Oman within the first 100 days of Prime Minister Narendra Modi’s third term, according to a report by Hindustan Times.
The news comes after Modi announced on Tuesday that the strategic ties between the two nations are ‘set to reach new heights’, a sentiment echoed during a review meeting chaired by Commerce Minister Piyush Goyal.
The Sultan of Oman, Haitham bin Tarik congratulated Modi on his third term, to which PM Modi responded on X (formerly Twitter) saying, “Thank His Majesty Sultan Haitham bin Tarik of the Sultanate of Oman for his call and deeply appreciate his warm felicitations and words of friendship. The centuries-old India-Oman strategic ties are destined to scale new heights.”
Thank His Majesty Sultan Haitham bin Tarik of the Sultanate of Oman for his call and deeply appreciate his warm felicitations and words of friendship. The centuries-old India-Oman strategic ties are destined to scale new heights.
— Narendra Modi (@narendramodi) June 11, 2024
FTA negotiations between India & Oman
The FTA discussions between India and Oman gained momentum following a meeting between Modi and Sultan bin Tarik in New Delhi on December 16, 2023. The proposed Comprehensive Economic Partnership Agreement (CEPA) was a focal point of their talks. Subsequently, Commerce Minister Piyush Goyal and Oman’s Trade Minister Qais Bin Mohammed Al Yousef agreed to establish dedicated desks in
Invest India and Invest Oman to enhance bilateral trade and investment.
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Negotiations for the FTA were also nearly complete during Modi’s previous term. However, the enforcement of the model code of conduct (MCC) on March 16, following the announcement of Lok Sabha poll dates, delayed the signing.
Two officials privy to the matter have now indicated that the deal is now close to conclusion, awaiting a nod from both sides, HT reported.
The report stated that preparatory work for the India-Oman FTA was well underway with officials confirming that draft documents were being prepared, and progress was ongoing.
Implications of India-Oman FTA
The impending FTA with Oman will mark the first significant bilateral deal of Modi’s third term as Prime Minister of India.
The agreement with Oman is expected to bolster India’s energy security and facilitate a cheaper supply of fertilisers, alongside boosting foreign investments. It will also lower the prices of Indian exports to Oman, including rice, tea, coffee, spices, dairy products, meat, apparel, steel products, and machinery.
According to the Commerce Ministry, bilateral merchandise trade surged by 82.64 per cent in 2021-2022, reaching $9.99 billion. This figure climbed to $12.39 billion in 2022-2023, with India exporting $4.48 billion worth of goods to Oman and importing over $7.9 billion in merchandise.
