INDIA–OMAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA)

NEWS – India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat.

HIGHLIGHTS

Key Features of the India–Oman CEPA

• Tariff Liberalisation
  • Oman grants zero-duty access on 98.08% of tariff lines, covering 38% of India’s exports.
  • India removes tariffs on 79% of products, covering 94.81% of imports from Oman by value.
• Investment & Services
  • 100% FDI permitted for Indian companies in major Omani service sectors.
  • Expanded commitments in high-growth sectors like logistics, IT, healthcare, and professional services.
• Labour Mobility
  • Enhanced mobility and opportunities for Indian professionals and workers in Oman.
• Currency Cooperation
  • Discussions on bilateral trade in local currencies to reduce dependence on the US dollar.

Strategic and Economic Significance

• Energy Security
  • Strengthens access to crude oil, LNG, and fertilisers from Oman.
• Supply Chain & Market Access
  • Improves market access for Indian exports, especially pharmaceuticals, engineering goods, and MSME products.
• Gateway to West Asia & Africa
  • Oman acts as a strategic gateway for Indian goods to West Asia and Africa.
• Diaspora Linkages
  • Nearly 7 lakh Indians reside in Oman, with centuries-old merchant communities.

Broader Trade Policy Implications

• Sixth trade pact under the NDA government.
• First FTA signed during Commerce Secretary Rajesh Agrawal’s tenure.
• Reinforces India’s strategy of trade diversification amid global protectionism.
• Complements existing Gulf engagement, following the India–UAE CEPA (2022).