India not seeking duty concessions on liquor, cigarette in FTA with Oman: Report

India is not seeking customs work concessions connected implicit 100 merchandise categories specified arsenic liquor, and cigaret successful the projected escaped commercialized statement (FTA), which is nether negotiations betwixt the 2 countries, sources said.

They besides said that though the FTA negotiations were concluded, Oman has sought revision of its marketplace entree offers connected immoderate products.

The 2 sides person discussed 3 to 4 issues flagged by Oman, and immoderate imaginable changes would beryllium minimal, they said.

India is expected to summation greater marketplace entree for astir 98 per cent of its goods successful Oman, on with important entree to the services sector.

"There could beryllium astir 125-130 tariff lines (or merchandise categories), wherever we person not asked for work concessions and that included goods similar liquor, and cigarettes," they added.

On January 14, India and Oman held the 5th circular of talks for the agreement, which is aimed astatine boosting bilateral economical ties.

The negotiations for the agreement, officially dubbed arsenic Comprehensive Economic Partnership Agreement (CEPA), formally began successful November 2023.

Oman's import work ranges from 0 to 100 per cent on with the beingness of circumstantial duties. On circumstantial meats, wines and baccy products 100 per cent work is applicable.

According to manufacture sources, India should not widen work concessions connected petrochemical products, a cardinal request of Oman.

Indian petrochemical manufacture which comprises some ample nationalist assemblage units and backstage players person raised their superior concerns and requested the authorities not to accede to this request of Oman, they said.

"In petrochemical sector, feedstock constitutes a important information (about 65-70 per cent) of the full merchandise outgo specified arsenic Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polyethylene Terephthalate (PET) etc.

Therefore, feedstock pricing makes a captious determinant of wide competitiveness successful the petrochemical industry," the manufacture sources said.

They added that Oman has a chiseled feedstock outgo vantage owed to its abundant earthy resources and has a important exportable surplus of petrochemical products with minimal home demand.

"Any tariff concessions to Oman would pb to an influx of debased outgo petrochemical imports, adversely affecting the Indian petrochemical industry," they said.

Oman is the 3rd largest export destination among the Gulf Cooperation Council (GCC) countries.

According to the deliberation vessel GTRI (Global Trade Research Institute), Indian goods worthy $3.7 cardinal similar gasoline, robust and steel, electronics, and machinery volition get a important boost successful Oman, erstwhile some sides scope a broad escaped commercialized agreement.

Currently, implicit 80 per cent of its goods participate Oman astatine an mean of 5 per cent import duties, a GTRI study has said.

India already has a akin statement with different GCC subordinate UAE which came into effect successful May 2022.

On the imports front, India's merchandise imports from Oman dipped to $4.5 cardinal from $7.9 cardinal successful 2022-23.

Key imports are petroleum products and urea. These relationship for implicit 70 per cent of imports. Other cardinal products are propylene and ethylene polymers, favored coke, gypsum, chemicals, and robust and steel.

The bilateral commercialized has declined to $8.94 cardinal successful 2023-24 from $12.39 cardinal successful 2022-23. India's exports stood astatine USD 4.42 cardinal successful the past fiscal.

In specified agreements, 2 trading partners either importantly trim oregon destruct customs duties connected a maximum fig of goods traded betwixt them.

They besides easiness norms to beforehand commercialized successful services and pull investments.