In a pivotal state visit, Sultan Haitham bin Tarik of Oman and Prime Minister Narendra Modi engaged in talks that propelled the negotiation of a Comprehensive Economic Partnership Agreement (CEPA). Despite being in the early stages, recent rounds of discussions have shown substantial progress. Both leaders expressed a strong commitment to conclude the CEPA agreement promptly.
The potential free trade agreement could significantly boost Indian exports, especially in key sectors like motor gasoline, textiles, electronics, machinery, and iron and steel, as it aims to eliminate import duties, currently averaging 5% for over 80% of Indian goods entering Oman.
Additionally, Foreign Secretary Vinay Mohan Kwatra announced the release of the third tranche of the Oman India Joint Investment Fund, amounting to $300 million. This fund, a collaboration between the State Bank of India and the Oman Investment Authority, seeks to channel investments into rapidly growing sectors in India.
Discussions also touched upon financial technologies, exploring the possibility of establishing bilateral rupee trade. The talks extended to space cooperation, green hydrogen, and renewable energy collaboration. The leaders addressed the strategic utilization of Oman’s Duqm port by the Indian navy for logistical and humanitarian purposes.
