Lauding the ambitious free trade agreement (FTA) between India and Oman, Prime Minister Narendra Modi on Thursday said this is a “blueprint of our bright future”, and will enhance the speed of our trade. Speaking at the India-Oman Business Summit in Muscat today, PM Modi said the FTA will encourage investments and create lots of opportunities in every sector.

Modi further said the comprehensive economic partnership (CEPA) will add to the confidence and energy between the partnership of two countries. 

According to Modi, CEPA has the potential to create a lot of opportunities for the youth of both the countries, increasing employment and fostering innovation. “When policy and enterprise walk together, it creates a new history,” he said.  

PM further highlighted that Oman has the major advantage in India’s growth story. “India is on the verge of becoming the third largest economy which has potential for the whole world but the advantage for Oman is even bigger. Because we are not only friends but maritime neighbors as well,” he added.

India’s reform push

Over the years, India has taken up structural reforms at a large level. Notably, from GST revamp to new labour codes, India recently made several key policy overhauls and PM Modi referred to the same during his address at the summit. 

“Our GST revamp transformed India into a unified integrated market, and the changes in insolvency and bankruptcy code brought financial discipline and increased transparency which led to the investors’ confidence,” he said. 

Modi also praised the corporate tax reforms aimed at ease of doing business. “We also made reforms in the corporate taxes. Now India is one of the most competitive investment destinations. We also reformed our labour codes,” he said.

India-Oman trade

India exports a wide range of goods to Oman, mainly energy-related and industrial products. These include petroleum products such as naphtha and petrol, industrial items like machinery, electrical equipment and aircraft parts, metals and minerals including calcined alumina and iron and steel products, as well as agricultural goods, processed food, and consumer and chemical products.

The Comprehensive Economic Partnership Agreement (CEPA) aims to widen trade beyond these sectors. Under the agreement, both countries are looking to cut tariffs on more than 98% of goods, and it is reported that they have reached an understanding on this.

India’s main imports from Oman are crude oil, liquefied natural gas (LNG), and other petroleum products such as fuel oil and petroleum coke. India also imports fertilisers and agricultural inputs, including urea, ammonia and other fertiliser-related products.