Oman offers to up petchem, fertiliser supply as FTA kicks in

NEW DELHI: India and Oman rolled out a free trade agreement on Monday, with 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.

Amid the West Asia conflict, which has disrupted supplies, Oman's foreign trade advisor Pankaj Khimji said the country was willing to supply more fertiliser and petrochemicals to India. He said 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 comes.

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. Indian firms investing in Oman can hire Indian workers over and above the local employment requirements mandated by the Omani govt under the free trade agreement that took effect on Monday, commerce and industry minister Piyush Goyal said.

Further, Indian pharmaceuticals can hope to get faster approvals in the medicine, which is approved by the US, European or UK regulator.

In return, 78% of products imported from Oman will see tariff elimination or reduction, including energy, fertilisers, and industrial goods. Indian consumers can also hope to get cheaper dates from Oman while the Gulf nation has also lifted a ban on marbles export to India. Goyal said Oman was a gateway to the region, including its key ports.

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