INDIAN GOODS WORTH USD 3.7 BN ENTERING OMAN TO GET BOOST BY FREE TRADE AGREEMENT

Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement, a report said on Tuesday.

According to the - India-OMAN CEPA: Gateway to Middle Eastern Markets and Beyond - report, prepared by think tank Global trade Reproach Initiative (GTRI), these goods at present face a 5 per cent import duty in Oman. India and Oman are negotiating a comprehensive economic partnership agreement (CEPA), under which the two countries could significantly reduce or eliminate customs duties on the maximum number of goods traded between them.

Export sectors which could get a boost in Oman include motor gasoline (exports worth USD 1.7 billion), iron and steel products (exports worth USD 235 million), electronics (USD 135 million), machinery (USD 125 million), textiles (USD 110 million), plastics (USD 64 million), boneless meat (USD 50 million), essential oils (USD 47 million), and motor cars (USD 28 million), will benefit from duty elimination, it said.

However, it added that about 16.5 percent of Indian exports to Oman, worth USD 800 million and goods that already have duty-free access, will not see additional benefits from the agreement. These items include wheat (USD 45 million), basmati rice (USD 125 million), fruits, vegetables (USD 76 million), medicines (USD 76 million), fish (USD 13.7 million), tea, coffee (USD 17.7 million). “The duty elimination will aid most Indian exports, but significant growth in the Omani market, a small, middle-income economy with a USD 25,000 per capita income, will also depend on product quality improvements,” GTRI Co-Founder Ajay Srivastava said.