Daily News - Monday, 15 December 2025
Cabinet approves India-Oman FTA which will provide $10.6 Billion Trade Boost (Financial Express)
The Union Cabinet has approved the India-Oman Comprehensive Economic Partnership Agreement (CEPA), granting India duty-free access to 98% of its products in Oman. The pact is expected to be signed during Prime Minister Narendra Modi’s visit to Oman on December 17-18, 2025, part of his three-nation tour including Jordan and Ethiopia. Bilateral trade between India and Oman currently stands at $10.6 billion, with India exporting $4.0 billion worth of goods and importing $6.5 billion. India’s key exports to Oman include light oils, aluminum oxide, rice, machinery, electrical equipment, plastics, iron and steel, and ceramics, while imports are dominated by crude petroleum oil, LNG, urea, organic chemicals, and sulphur. Oman, India’s third-largest GCC export destination, imposes import duties ranging from 0-100%, with 100% tariffs on meats, wines, and tobacco, making CEPA a major boost for trade and investment flows.
RBI reports India's Forex Reserves Increased to $687.26 Billion and Gold reserves to $106.984 billion (News18)
India’s foreign exchange reserves rose by $1.033 billion to $687.26 billion in the week ending December 5, 2025, according to RBI data. The increase was driven by a sharp rise in gold reserves, which climbed $1.188 billion to $106.984 billion. Foreign currency assets (FCA), stood at $556.88 billion, down. India’s forex kitty remains close to its all-time high of $704.89 billion reached in September 2024, despite recent downtrends. In 2023, India added $58 billion to reserves, while 2022 saw a decline of $71 billion; in 2024, reserves rose by just over $20 billion. So far in 2025, reserves have grown by about $47-48 billion, giving the RBI confidence to cover more than 11 months of merchandise imports.
India Targets 100 Million Tonnes Coal Gasification by 2030, Which Will Save India $10 Billion Annually in Import Substitution (Fortune India)
India aims to achieve 100 million tonnes of coal gasification capacity by 2030 with investments exceeding ₹85,000 crore (~US$10.2 billion). The initiative could save India ₹60,000-90,000 crore (~US$7.2-10.8 billion) annually through import substitution in chemicals and fertilisers. India currently imports 83% of its oil, over 90% of methanol, and 13% of ammonia, making gasification critical for energy independence. Two major projects are underway: a synthetic natural gas plant in West Bengal costing over ₹13,000 crore (~US$1.56 billion) and a coal-to-chemical plant in Odisha producing 2,000 tonnes of ammonium nitrate per year, both expected by FY29. Private players like Jindal Steel, New Era Cleantech, and Greta Energy are also investing, with projects ranging from 5 MTPA coal gasification in Maharashtra to syngas-based steelmaking.
$15B India-France Trade Gets Boost as Dividend Tax Falls to 5% Under New Deal (Financial Express)
India and France have agreed to revise their 1992 tax treaty, halving dividend tax for French companies with majority stakes in Indian entities from 10% to 5%, while raising it to 15% for minority holdings under 10%. The new treaty expands India’s taxation rights on capital gains, removing the earlier 10% threshold and allowing full source-based taxation on equity share sales. French portfolio investors currently hold $21 billion worth of Indian shares as of November 2025. Bilateral trade between India and France stood at $15 billion in 2024, with major French companies like Capgemini, Accor, Sanofi, Pernod Ricard, Danone, and L’Oréal operating in India. The treaty also limits India’s tax on fees for technical services to cases involving transfer of knowledge, exempting routine consultancy and support services. A key change is the deletion of the Most Favoured Nation (MFN) clause, which had previously given France tax advantages but led to disputes after a 2023 Supreme Court ruling, with potential costs estimated at €10 billion for French firms.
