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- India And Oman Sign CEPA: Comprehensive Economic Partnership Agreement To Boost Trade, Investment And Services Ties
New Delhi6 minutes ago
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India has signed Comprehensive Economic Partnership Agreement (CEPA) with Oman. The agreement will increase trade, investment and services between the two countries, Indian goods will become almost duty free in Oman and will also open new doors for services and professionals.
Trade between the two countries reached $10.613 billion (about ₹95,700 crore) in FY25. India is expanding the scope of its global trade amid pressure from American tariffs and European Union’s carbon tax.
Zero duty access on 98.08% tariff lines
In the India-Oman CEPA, Oman has given zero duty access on 98.08% of its tariff lines, covering 99.38% of India’s export value. Meaning, in number, duty is abolished on 98.08% categories, but in terms of value, it makes most of India’s exports duty-free.
This will benefit sectors like textile, leather, footwear, gems and jewellery, engineering products, plastics, furniture, agriculture products, pharma, medical devices and automobiles.
Products like dairy, gold-silver out of deal
At the same time, India has given relaxation on 77.79% tariff lines, which covers 94.81% of Oman’s imports. But sensitive products like dairy, chocolates, gold, silver, jewellery, footwear have been kept out of this deal, so that domestic farmers and MSMEs do not suffer losses.
In services, Oman has made commitments in 127 sub-sectors for the first time. Such as Computer Services, Business and Professional Services, Education, Health and Research and Development (R&D). Indian companies will get 100% FDI permission in major service sectors. Also, visa and stay facilities for Indian professionals will increase.
Commerce Minister said – watershed moment of age-old friendship
Commerce Minister Piyush Goyal called it a watershed moment of the centuries-old friendship between the two countries. He said that this agreement will open up huge opportunities for Indian exporters and professionals, and will also support Oman’s Vision 2040.
Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), said – abolition of tariffs will increase the competitiveness of Indian industrial exports, but Oman’s market is small (population 50 lakh, GDP Rs 10.40 lakh crore), hence work will have to be done on increasing the quality and increasing the product range. This agreement with 6000 joint ventures will strengthen India’s presence in geopolitics and the Middle East.
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