India and Oman on Wednesday agreed to undertake a joint feasibility study, before going ahead with a preferential trade deal on limited goods.
A senior commerce department official said Oman had requested India for a preferential trade agreement on limited items, where both nations can discuss reduction in tariff of some items of export interest.
The development is taking place at a time when India is set to begin deeper engagements with the Gulf Cooperation Council (GCC) countries towards inking a free trade agreement (FTA). GCC is a regional, intergovernmental political economic union comprising six countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
“We are also negotiating a free trade agreement with GCC (Gulf Cooperation Council) countries, in which Oman is also a member… Oman will also be a party to the GCC FTA as and when it is concluded. Meanwhile, they suggested that they can consider a PTA. For that, India said both nations need to do a feasibility study jointly. That’s what has been decided today (Wednesday),” the department of commerce joint secretary Srikar Reddy told reporters.
Oman will be the second GCC member to work towards a trade agreement. India and UAE have already signed a comprehensive economic partnership agreement (CEPA) in February.
The discussion on the trade deal and a joint feasibility study took place at the 10th session of the India-Oman joint commission meeting (JCM) in New Delhi, which was co-chaired by Commerce and Industry Minister Piyush Goyal and his counterpart in Oman Qais bin Mohammed al Yousef.
A 48-member delegation includes senior officials and business representatives from diverse areas spanning health, pharmaceuticals, mining, tourism, telecommunication, energy, shipping and real estate are in India.