NEW DELHI: Indian goods worth $3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement, a report said on Tuesday.
According to the - India-OMAN CEPA: Gateway to Middle Eastern Markets and Beyond - report, prepared by think tank Global trade Reproach Initiative (GTRI), these goods at present face a 5 per cent import duty in Oman.
India and Oman are negotiating a comprehensive economic partnership agreement (CEPA), under which the two countries could significantly reduce or eliminate customs duties on the maximum number of goods traded between them.
Export sectors which could get a boost in Oman include motor gasoline (exports worth $1.7 billion), iron and steel products (exports worth $235 million), electronics ($135 million), machinery ($125 million), textiles ($110 million), plastics ($64 million), boneless meat ($50 million), essential oils ($47 million), and motor cars ($28 million), will benefit from duty elimination, it said.
However, it added that about 16.5 per cent of Indian exports to Oman, worth $800 million and goods that already have duty-free access, will not see additional benefits from the agreement.
These items include wheat ($45 million), basmati rice ($125 million), fruits, vegetables ($76 million), medicines ($76 million), fish ($13.7 million), tea, coffee ($17.7 million).
“The duty elimination will aid most Indian exports, but significant growth in the Omani market, a small, middle-income economy with a $25,000 per capita income, will also depend on product quality improvements,” GTRI co-founder Ajay Srivastava said.
He said India can hope to radically increase its exports post the free trade agreement, as currently over 80 per cent of its goods enter Oman at average 5 per cent import duties, and there are not many trade barriers.