India and Oman have agreed to undertake a study exploring the feasibility of a ‘limited preferential trade agreement’ even as a formal free trade agreement (FTA) is being worked out with the Gulf Co-operation Council (GCC), Indian government officials said on Thursday, May 12.
The officials said that the study will explore the options for a reduction in tariffs on certain items traded between Oman and India in the interest of both countries.
“We are also negotiating an FTA with the GCC in which Oman is also a member… Oman will also be a party to the GCC FTA when it is concluded. Meanwhile, Oman suggested that they can consider a preferential trade agreement. For that, India said both nations need to do a feasibility study jointly. That’s what has been decided today,” Ministry of Commerce joint secretary Srikar Reddy said.
Oman will be the second GCC member to work towards a trade agreement after the UAE-India signed an economic partnership agreement in February 2022.