India, Oman ink free trade agreement, labour-intensive sectors receive full tariff elimination
The pact holds significance as it comes at a time when India is facing steep 50 per cent tariffs in its largest export destination, the United States.
India and Oman have signed a major Free Trade Agreement (FTA). The agreement, signed on Thursday, marks a significant step toward strengthening economic ties between the two countries. As part of this agreement, Oman will eliminate tariffs on over 98 per cent of India's exports, including textiles, agricultural goods, and leather items. On the other hand, India has agreed to reduce import duties on essential Omani products, including dates, marbles, and petrochemicals.
The deal, signed in the presence of Prime Minister Narendra Modi in Muscat, is expected to take effect in the first quarter of the next fiscal year. The agreement was signed by Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry, and Investment Promotion, Qais bin Mohammed Al Yousef.
The pact holds significance as it comes at a time when India is facing steep 50 per cent tariffs in its largest export destination, the United States.
Labour-intensive sectors receive full tariff elimination
All major labour-intensive sectors, including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles, receive full tariff elimination.
Of these, immediate tariff elimination is being offered for 97.96 per cent of product categories.
On the other hand, India is offering tariff liberalisation on 77.79 per cent of its total tariff lines (12,556), which covers 94.81 per cent of India's imports from Oman by value.
100% FDI by Indian companies in major services sectors
The pact also provides for 100 per cent Foreign Direct Investment by Indian companies in major services sectors in Oman through commercial presence, opening a wide avenue for India's services industry to expand operations in the region.
Oman is an important strategic partner in the region and is a key gateway for Indian goods and services to the wider Middle East and Africa.
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