India-Oman Ink Duty-Free Trade Deal: What Are FTAs & Their Benefits?

• India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA), a type of Free Trade Agreement (FTA), eliminating duties on imports and exports.
• FTAs reduce trade barriers like tariffs and quotas, making goods and services cheaper and boosting economic ties between countries.
• Benefits include increased exports, job creation, lower consumer prices, and enhanced market access for participating nations.
• India has signed FTAs with 16 countries/regions, including recent deals with UAE, Australia, and EFTA, providing duty-free access for 99% of exports.
• While FTA countries offer 0% tariffs, over 80% of non-FTA trading partners impose 5-20% tariffs on Indian goods, and India reciprocates.

Why It Matters: India's new FTA with Oman highlights duty-free trade benefits, expanding economic reach and reducing tariffs globally.