UPSC-Relevant News Items

1. India signs Free Trade Agreement with Oman, securing access to 98% tariff lines

Page: 1

Summary:

• • India signed a Free Trade Agreement (FTA) with Oman, gaining zero-duty access on 98% of Omani tariff lines to expand exports.
• • The pact is India's second with a Gulf Cooperation Council (GCC) member (after the UAE), aiming to improve competitiveness in the West Asian market.
• • Labour-intensive sectors like textiles, leather, and gems/jewellery stand to gain significantly, expecting an export increase of $2 billion in the near term.
• • This agreement includes robust provisions on Rules of Origin (RoO) and trade facilitation to ensure utilization and curb rerouting.
• • Oman is a key partner in India's energy security (crude oil and LNG) and hosts a large Indian diaspora.

Additional Facts:

• • FTAs are negotiated by the Department of Commerce (Ministry of Commerce and Industry) under the strategic directives of the Foreign Trade Policy (FTP), aiming to integrate domestic sectors into global value chains.
• • The implementation of tariff concessions is governed by the Customs Act, 1962, while the Directorate General of Trade Remedies addresses anti-dumping measures and safeguard mechanisms to protect domestic industries.

Linkage with UPSC course:

---