New Delhi, Dec 18 (KNN) India and Oman have taken a significant step toward deepening their economic ties with the signing of the Comprehensive Economic Partnership Agreement (CEPA).
The agreement was signed by Union Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion, Qais bin Mohammed Al Yousef on Thursday.
Strategic and Economic Significance
CEPA marks a major milestone in India’s engagement with the Gulf region, positioning Oman as a key gateway for Indian goods and services to the wider Middle East and Africa.
Over 6,000 Indian enterprises operate across multiple sectors in Oman, contributing to an annual remittance of around USD 2 billion.
Bilateral trade currently exceeds USD 10 billion, with substantial potential for expansion under CEPA.
Tariff Concessions and Market Access
The agreement offers India unprecedented tariff concessions. Oman will provide zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to Oman.
Key labour-intensive sectors, including gems & jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles, will receive full tariff elimination, with immediate benefits on 97.96 per cent of tariff lines.
India will liberalise tariffs on 77.79 per cent of its tariff lines, covering 94.81 per cent of imports from Oman by value. Sensitive Indian products, such as certain agricultural items, gold and silver bullion, jewellery, and labour-intensive goods, remain excluded to protect domestic interests.
Services and Professional Mobility
CEPA includes a comprehensive services package, opening opportunities in computer-related services, business and professional services, education, healthcare, R&D, and audio-visual services.
Oman has committed to enhanced mobility for Indian professionals, including a rise in the Intra-Corporate Transferee quota from 20 per cent to 50 per cent, longer stay durations for Contractual Service Suppliers (up to four years), and liberal entry conditions for skilled professionals in accountancy, taxation, architecture, and medical services.
The agreement also allows 100 per cent Foreign Direct Investment by Indian companies in major Omani services sectors, while future discussions on social security coordination are planned.
Notably, Oman has made comprehensive commitments on Traditional Medicine, offering significant opportunities for India’s AYUSH and wellness sectors.
(KNN Bureau)
