India-Oman trade pact to improve market access, create jobs: Industry

New Delhi, Dec 19 The signing of the India–Oman Comprehensive Economic Partnership Agreement (CEPA) is a major milestone in India’s trade and economic engagement with the Gulf region which would significantly improve market access, create jobs, and open new opportunities for Indian companies across goods and services, according to trade experts.

The Federation of Indian Export Organisations (FIEO), the apex body of Indian exporters, said the CEPA is a transformational agreement that will strengthen India’s export competitiveness and support inclusive, employment-led growth.

FIEO President SC Ralhan said the deal secures near-universal duty-free access for Indian goods, with zero-duty benefits on over 98 per cent of Oman’s tariff lines, covering more than 99 per cent of India’s exports by value.

This is expected to sharply improve competitiveness for Indian products in the Omani market.

“Labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods, plastics, furniture, agricultural and food products, pharmaceuticals, medical devices, automobiles and sports goods are expected to gain the most,” Ralhan said.

“The agreement will generate employment and provide strong support to MSMEs, artisans, women-led enterprises and farmers across India,” Ralhan added.

The CEPA secures unprecedented market access for Indian exports, with zero-duty access on 98.08 per cent of Oman’s tariff lines, covering 99.38 per cent of India’s exports by value.

This near-universal duty-free access will significantly enhance the competitiveness of Indian goods and benefit key labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering products, plastics, furniture, agricultural and food products, pharmaceuticals, medical devices, automobiles, and sports goods.

FIEO Chief noted that Oman’s strategic location makes it a vital gateway to the Gulf and Africa, and the CEPA will enable Indian exporters to integrate more effectively into regional value chains, diversify markets, and expand India’s export footprint.

With bilateral trade already exceeding $10 billion, the agreement provides a strong platform for accelerated growth in merchandise trade.

The CEPA also delivers ambitious and forward-looking commitments in services, covering 127 sub-sectors including IT and computer-related services, business and professional services, R&D, education, health, and audio-visual services, unlocking high-value opportunities for Indian service providers.

Prashant Mehra, Partner and India–Middle East Corridor Leader, Grant Thornton Bharat, said this is a significant milestone, not just because India has furthered its bilateral trade ties in the Gulf region after signing the FTA with the UAE in February 2022, but also because Oman has shown the same confidence in India as a market and business partner that it showed in the USA in 2006.

“The agreement will further accelerate corridor growth not just for goods, but more importantly for services as well, with enhanced mobility for Indian professionals. This, coupled with 100 per cent FDI in major services sectors in Oman through commercial presence, opens new avenues for outbound investment from India,” he mentioned.

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