The Comprehensive Economic Partnership Agreement (CEPA) with Oman is set to enhance India’s export competitiveness, secure energy supplies at favorable prices, and strengthen economic ties between India and Oman, as per a report by Bank of Baroda. The agreement aims to expand trade and investment, increase export opportunities for labor-intensive sectors like textiles, leather, footwear, gems, jewelry, and engineering products. It also seeks to enhance service commitments in education, health, computer, business, professional, and R&D services. India allows zero duty access on 98.08% of Oman’s tariff lines for Indian goods, while Oman offers 77.79% of its total tariff lines. India’s exports to Oman amounted to $4.1 billion in FY25, representing about 0.9% of total exports, with a five-year compound annual growth rate of 12.4%. The agreement is expected to help reduce India’s oil import bill and explore more options in the future, focusing on sectors that constitute around 39% of India’s exports to Oman. The report highlights the positive impact on India’s export basket amid some redirection of exports to leverage cost advantages due to higher US tariff rates. The zero-duty agreement covers 99.38% of India’s exports to Oman by value and 94.81% of India’s imports from Oman by value, with liberalization for export-sensitive products mainly through tariff-rate quotas, particularly affecting agriculture.
India’s CEPA with Oman to Boost Export Competitiveness and Energy Supplies
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