The India Oman Comprehensive Economic Partnership Agreement came into effect on June 1, opening duty free access for most Indian exports. …reports Asian Lite News Desk
India’s merchandise exports to Oman are expected to grow by 50 per cent over the next three years after the Comprehensive Economic Partnership Agreement (CEPA) between the two countries came into force on Monday, marking a major step in strengthening bilateral trade and economic ties.
The agreement aims to raise India’s merchandise exports to Oman from the current baseline of around $4.06 billion to over $6 billion in the near term, with a medium term target of reaching $10 billion.
Under the pact, Oman has granted zero duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to the Gulf nation. The move is expected to provide a significant boost to several labour intensive sectors, including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices and automobiles.
India, in turn, has offered tariff liberalisation on 77.79 per cent of its tariff lines, covering 94.81 per cent of imports from Oman by value. For products considered sensitive to India, tariff concessions have largely been offered through tariff rate quotas.
To protect domestic interests, India has excluded a range of sensitive products from tariff concessions. These include dairy products, tea, coffee, rubber, tobacco, gold and silver bullion, jewellery, footwear, sports goods and scrap from several base metals.
The Finance Ministry on Sunday issued a notification detailing duty concessions on Omani goods under the agreement, paving the way for its implementation from June 1.
India and Oman signed the CEPA in December last year during Prime Minister Narendra Modi’s visit to Muscat.
Beyond merchandise trade, the agreement is expected to create substantial opportunities in the services sector. Oman’s global services imports are valued at $12.52 billion, while India’s share in that market currently stands at just 5.31 per cent, highlighting significant growth potential.
The pact includes extensive commitments by Oman across sectors such as computer related services, business and professional services, audio visual services, research and development, education and healthcare.
A key feature of the agreement is its enhanced mobility provisions for Indian professionals. Oman has increased the quota for intra corporate transferees from 20 per cent to 50 per cent and extended the permitted stay for contractual service suppliers from 90 days to two years, with the possibility of a further two year extension.
The agreement also provides more liberal entry and stay conditions for skilled professionals in fields including accountancy, taxation, architecture and medical services.
The CEPA is part of India’s broader strategy to diversify trade partnerships amid shifts in the global economic landscape. New Delhi has recently signed similar trade agreements with the United Kingdom and New Zealand, while also concluding negotiations for a free trade agreement with the European Union.
