India-Oman FTA deal set to cross the finish Line

India and Oman are close to concluding negotiations on a Comprehensive Economic Partnership Agreement (CEPA), with Commerce Minister Piyush Goyal indicating an announcement is expected soon. 

Commerce and Industry Minister Piyush Goyal said on Monday that negotiations on the India-Oman free trade agreement (FTA) could be finalised soon. “I think you will see some good news very soon on the Oman FTA,” he told reporters when asked about its conclusion this year.

An official had earlier noted that most issues in the FTA had been resolved, with only the matter of protection from Oman’s frequently changing Omanisation policy remaining. The Omanisation policy mandates companies to hire a set percentage of local workers, which varies across sectors and is revised regularly. Companies that meet these targets benefit from government incentives, while those that don’t face penalties such as fines, visa restrictions, and permit revocations.

India has requested that Oman freeze the current Omanisation targets for Indian firms and include this commitment in the FTA, officially called the Comprehensive Economic Partnership Agreement (CEPA).

Negotiations on the CEPA, which began in November 2023, concluded by March 2024. While signing was initially expected before the 2024 general elections, continued discussions delayed the process. The agreement surpasses India’s CEPA with the UAE in both scope and market liberalisation. Under the CEPA, India will gain access to 98% of its product lines and significant service sector opportunities in Oman.

Oman’s import duties range from 0 to 100%, with specific duties applied on certain goods such as meats, wine, and tobacco. To advance the trade deal, Minister Goyal visited Muscat in January, attended the 11th India-Oman Joint Commission Meeting, met top Omani leaders, and signed a protocol amending the Double Taxation Avoidance Agreement (DTAA).

Oman ranks as India’s third-largest export market in the GCC. In 2024–25, Indian exports to Oman totalled US$ 443 million, while imports reached US$ 6.51 billion. Key Indian exports include petroleum products, engineering goods, minerals, and chemicals, whereas imports from Oman comprise petroleum, fertilisers, chemicals, and plastics.