India, Oman free trade agreement likely to be announced soon: Official

New Delhi | The conclusion and signing of the proposed free trade agreement between India and Oman is expected to be announced soon, an official has said.

The trade pact text is being translated into Arabic in Oman. After that, the cabinets of both countries will approve the agreement, according to the official.

"Both countries have, in principle, decided to announce the conclusion and signing together," the official added.

When asked if it would take two to three months, the official said: "Much less" than that.

The talks for the agreement, officially termed the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023.

In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them.

They also ease norms to promote trade in services and attract investments.

Oman is the third-largest export destination among the Gulf Cooperation Council (GCC) countries for India. India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022.

The bilateral trade was over USD 10 billion (exports USD 4.06 billion and imports USD 6.55 billion) in 2024-25.

India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other major products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.