India and Oman Sign Comprehensive Economic Partnership Agreement (CEPA) for Duty-Free Exports
India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), marking Oman's first bilateral trade deal since 2006 and India's second with a GCC nation. Under this pact, Oman will provide duty-free access to 98.08% of its tariff lines, covering over 99% of Indian exports by value. Conversely, India offers liberalized tariffs on 77.79% of its lines. The agreement aims to boost labor-intensive sectors like MSMEs, textiles, and electronics while serving as a strategic gateway for India into the GCC, East Europe, and Africa.
Key Points
- The CEPA provides India duty-free access to nearly 99.38% of its exports to Oman by value.
- It is the first bilateral agreement Oman has signed with any country since its 2006 deal with the U.S.
- The deal is expected to significantly benefit labor-intensive sectors, MSMEs, and women-led enterprises.
- Oman serves as a strategic gateway for Indian trade into the broader GCC region, Central Asia, and Africa.
Exam Facts
- Oman provides duty-free access to 98.08% of its tariff lines.
- India's merchandise exports to Oman in 2024-25 were valued at $4.06 billion.
- This is India's second trade deal with a GCC member, following the UAE in February 2022.
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