What are the duty concessions on petrochemical products and why are they a sticking point in India-Oman FTA talks

The duty concessions on petrochemical products refer to the reduction or elimination of import duties imposed on these goods between the countries involved in a free trade agreement (FTA). In the context of India-Oman FTA talks, the duty concessions on petrochemical products have become a sticking point for several reasons: 1. Economic Importance: Petrochemical products play a substantial role in both India and Oman's economies, as they are used in various industries such as plastics, textiles, and manufacturing. 2. Competitiveness: Lower or zero import duties on petrochemical products can enhance competitiveness by reducing production costs and encouraging trade between the two countries. 3. Market Access: Duty concessions promote market access by allowing easier entry of petrochemical products into the importing country, leading to increased trade volumes and potential investment opportunities. 4. Domestic Industries: Negotiations on duty concessions can be challenging, as both countries aim to protect their domestic petrochemical industries and avoid a surge in imports that could negatively impact local manufacturers. 5. Revenue Loss: Granting duty concessions may lead to revenue loss for the importing country, which needs to be carefully balanced against the potential benefits of enhanced trade and economic cooperation. Overall, duty concessions on petrochemical products are a significant aspect of India-Oman FTA talks as they impact the competitiveness of industries, market access, and revenue considerations for both countries.