NEW DELHI: India and Oman have concluded negotiations for a Free Trade Agreement (FTA) under a proposed Comprehensive Economic Partnership Agreement (CEPA) aimed at boosting bilateral trade and investment, the government informed Parliament on Tuesday.
In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said India has so far signed 15 free trade agreements (FTAs) and six preferential trade agreements.
Formal talks for the India-Oman CEPA began in November 2023.
FTAs typically involve reducing or eliminating customs duties on a large number of traded goods, easing norms for services trade, and promoting investment flows.
Oman is India’s third-largest export market among Gulf Cooperation Council (GCC) members. India already has a CEPA with the UAE, implemented in May 2022.
Higher trade volumes
Prasada noted that while tariff cuts under FTAs may initially reduce revenue for both partners, the impact is expected to be offset in the medium to long term through higher trade volumes, increased investments, enhanced export competitiveness, and stronger economic growth.
He stressed that FTAs are negotiated to be “comprehensive, balanced, broad-based and equitable,” protecting domestic industry interests through sensitive or exclusion lists and allowing safeguard measures such as anti-dumping duties in case of import surges.
Since 2020, India has signed FTAs with Mauritius, the UAE, Australia, the European Free Trade Association (EFTA), and the UK. The India-Australia pact, he said, has helped increase exports by 14 per cent in 2023-24 and 8 per cent in 2024-25.
Before entering negotiations, the Department of Commerce conducts feasibility studies or sets up Joint Study Groups, and consults widely with stakeholders — including farmers and MSMEs — at every stage, from pre-negotiation to post-implementation.
“The aim of FTAs is to benefit industry, farmers, and MSMEs, while creating new job opportunities,” Prasada added.
