Post by : Maya Rahman

The Union Cabinet is anticipated to review the draft proposal for the India-Oman free trade agreement this Friday, with expectations for approval just ahead of Prime Minister Narendra Modi’s trip to Oman the following week, insights from insiders reveal. The Prime Minister is slated to embark on a visit to Oman, Jordan, and Ethiopia from December 15 to 18, with the potential announcement of the free trade pact occurring on December 17 in Muscat. Nonetheless, the formal declaration will hinge on the Cabinet's approval this week.

While the Cabinet is set to convene on Friday, officials have indicated that a public comment from the government concerning the deal might be delayed due to its delicate nature. In its year-end assessment, the Ministry of Commerce noted that negotiations for the Comprehensive Economic Partnership Agreement (CEPA) began in November 2023. By March 2024, both countries had settled on all elements of the pact, including the text and market access provisions. However, the Cabinet postponed the proposal in March, which led to additional discussions.

The fourth and fifth rounds of negotiations took place in September 2024 and January 2025, aimed at refining offers. Now, the draft for Cabinet approval has been distributed among all ministries, and both parties are finalizing their internal validations. Although negotiations were nearing conclusion earlier in the year, the deal experienced delays due to final adjustments concerning petrochemical commodities and issues related to Omanisation, which stipulates replacing foreign labor with trained local personnel.

India has urged Oman to sustain existing sector-specific Omanisation quotas for Indian investors, ensuring future compliance remains manageable post-FTA. The dialogue regained momentum during Commerce Minister Piyush Goyal’s visit to Muscat in January 2025.

Once greenlit, the CEPA will likely strengthen economic relations, enhance bilateral trade, and generate consistent long-term opportunities for Indian enterprises in Oman’s expanding market.

#Global News #Business News