NEW DELHI: India and Oman rolled out a free trade agreement on Monday, with the first set of consignments being shipped at concessional or zero rates, as New Delhi offered a food security pact to further cement ties with the Gulf nation.
Oman's Offer on Fertilizers and Petrochemicals
Amid the West Asia conflict, which has disrupted supplies, Oman's foreign trade advisor Pankaj Khimji said the country was willing to supply more fertilizer and petrochemicals to India. He noted that Oman would be happy to consider diverting its share of the production from the Oman India Fertiliser Project - a joint venture between Iffco, Kribhco and Oman Investment Authority -- to India if such a request arises.
Tariff Reductions and Visa Benefits
Apart from lowering tariffs on 99% of goods exported by India (98% of the products or tariff lines), including textiles, leather, engineering goods, and food and marine products, Oman has also agreed to provide visa benefits to Indian workers and businesses. Commerce and industry minister Piyush Goyal stated that Indian firms investing in Oman can hire Indian workers over and above the local employment requirements mandated by the Omani government under the free trade agreement that took effect on Monday.
Faster Approvals for Indian Pharmaceuticals
Indian pharmaceuticals can hope to get faster approvals in Oman for medicines that are already approved by the US, European, or UK regulators.
Benefits for India from Oman
In return, 78% of products imported from Oman will see tariff elimination or reduction, including energy, fertilizers, and industrial goods. Indian consumers can also hope to get cheaper dates from Oman, while the Gulf nation has also lifted a ban on marble exports to India. Goyal emphasized that Oman is a gateway to the region, including its key ports.
