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India and Oman Finalizing Free Trade Agreement with Key Labour and Petrochemical Issues Nearing Resolution

The Comprehensive Economic Partnership Agreement is expected to be signed soon as negotiators address Omanisation quotas and market access for petrochemicals.

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Exports

Overview

  • India and Oman are in the final stages of negotiating a Comprehensive Economic Partnership Agreement (CEPA) that will liberalize trade in goods and services.
  • Key unresolved issues include India's demand to freeze Oman’s labour-localization quotas, known as Omanisation, at current levels to safeguard its workforce from future tightening.
  • Discussions also focus on securing specific market access conditions for petrochemical products, a significant export category for India.
  • The CEPA will grant India tariff-free access to 98% of its products in Oman and improved mobility for Indian professionals in the services sector.
  • Bilateral trade between India and Oman reached USD 9 billion in 2023–24, making Oman India’s third-largest export destination among GCC countries.