UK-Oman trade deals may feature on Trade Ministry’s 100-day agenda for new government
3 min read
The United Kingdom and Oman are expected to feature in the Commerce Ministry’s 100-day agenda roadmap for the new government, an official said.
The ministry will also focus on issues relating to the export community with a view to promoting outbound shipments from the country.
Other talks between India and Australia to expand the scope of the existing economic cooperation and trade agreement to a comprehensive economic cooperation agreement are also progressing at a healthy pace.
The exercise assumes importance as, while chairing a cabinet meeting on March 17, Prime Minister Narendra Modi asked ministers to meet secretaries and other officials of their respective ministries to discuss how the agenda can be better implemented to the first 100 days and the next five years. .
The seven-phase Lok Sabha elections, the world’s largest electoral exercise, will begin on April 19 and counting of votes will take place on June 4.
The official said that these two FTAs are in their final stages as talks on most of the issues have been concluded.
“Most of the difficult issues in the India-UK FTA negotiations are moving towards a solution, and both sides are actively engaged to achieve a fair and equitable deal,” the official said.
India and the United Kingdom began talks for an FTA in January 2022. The agreement consists of 26 chapters, including goods, services, investments and intellectual property rights.
The fourteenth round of negotiations was held in January. The textual negotiations by chapters are almost closed and the schedule on goods and services is in an advanced state of negotiations. Recently, a team from the United Kingdom visited India to negotiate outstanding issues.
Bilateral trade between India and the UK increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.
According to a report by think tank GTRI, the overall benefits to India in the trade deal will be limited because most products from here are already entering the UK with low or no tariffs.
In 2022-23, India’s merchandise exports to the UK were valued at $11.41 billion and of this, $6 billion worth of goods such as petroleum products, medicines, diamonds, machine parts, Planes and wooden furniture entered Britain duty-free. , he said.
However, benefits will be gained by reducing tariffs on Indian exports worth $5 billion and those items include textiles, garments, footwear, carpets, automobiles, marine products, grapes and mangoes, the report said.
Regarding the proposed free trade agreement between India and Oman, the official stated that it will be concluded “very” soon.
For India, Oman is the third largest export destination among the Gulf Cooperation Council countries. India has already implemented a trade pact with another key GCC member – the United Arab Emirates.
Bilateral trade between India and Oman stood at $12.39 billion in 2022-23, up from $10 billion in 2021-22. India’s exports rose to $4.48 billion in 2022-23, while imports rose to around $8 billion in the last fiscal year.
Another GTRI report has stated that Indian products worth $3.7 billion, such as petrol, iron and steel, electronics and machinery, will receive a significant boost in Oman, once both sides reach a comprehensive free trade agreement, as these products currently attract 5 percent. customs duties.
