Commerce and Industry Minister Piyush Goyal has said that negotiations between India and Oman for the proposed free trade agreement (FTA) are progressing, and some "good news" may come "very soon" on that.
The negotiations received a much-needed impetus after the visit of Goyal to Muscat in January this year.
The talks for the agreement, officially dubbed as the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023.
"I think you will see some good news very soon on the Oman FTA," the minister told reporters here when asked whether the FTA talks with Oman can be concluded this year.
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Goyal is here on an official visit to hold talks with French leaders and businesses to boost trade and investments. He will also attend a mini-ministerial meeting of the World Trade Organisation (WTO) on June 3.
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In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.
Oman is the third-largest export destination among the Gulf Cooperation Council (GCC) countries for India. India already has a similar agreement with another GCC member UAE which came into effect in May 2022.
The bilateral trade was about $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25.
India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.
Taking about such agreements, the minister said these FTAs not just promote trade in goods and services, but also strengthen supply chain, bring confidence in businesses of both sides about stable polices, and predictability.
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"So in a way, it's a big message when you conclude an FTA," he added.
When asked if India could see further domestic reforms as a result of these agreements, the minister said FTA stands on their own footing and have no relationship to "our own" domestic efforts to make the country more attractive.
"These agreements are more towards opening markets on both sides which lead to greater competitiveness, improved productivity and efficiency in all processes," he said.
Goyal said the National Manufacturing Mission, announced in the Budget, may come up soon.
It will further bring an "orderly shape" to how states and the Centre work together in the direction of promoting manufacturing in India, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Curbed by cost pressures, fierce competition and the India-Pakistan conflict, India’s manufacturing activity decelerated in May to grow at its slowest pace in three months, a private survey said on Monday.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April.
A figure above 50 denotes expansion in manufacturing activity while below that signifies contraction. The headline figure has been in the expansion zone for the 47th month running.
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“May data indicated another robust improvement in business conditions across India's manufacturing industry. Although rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages,” said the survey.
The survey notes that panellists suggested that demand strength continued to support sales and production, though competition, inflation and the India-Pakistan conflict had reportedly weighed on growth. Goods producers lifted input buying and headcounts again, with the latter experiencing a series-record upturn.
Meanwhile, cost inflation climbed to a six-month high and selling prices were raised to one of the greatest extents seen in around 11 and a half years.
“New export orders rose at one of the strongest rates recorded in three years. Panel members remarked on favourable demand from Asia, Europe, the Middle East and the US,” the survey noted.
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Pranjul Bhandari, chief India economist at HSBC, said that India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month.
“The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” she added.
On the employment front, the survey noted that firms also hired additional staff in May, with the rate of job creation climbing to a new series record. Among the 12 per cent of panellists that reported higher headcounts, the creation of permanent job roles featured more prominently than that of short-term positions.
“Sustained job creation enabled manufacturers to stay on top of their workloads in May. Outstanding business volumes were unchanged, ending a six-month period of accumulation,” the survey noted.
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