Oman and India Sign CEPA: Key Takeaways and Implications for Investors and Businesses
Muscat: The Comprehensive Economic Partnership Agreement (CEPA) between Oman and India is expected to significantly boost the Sultanate’s local products in global markets.
This agreement aims to reduce or eliminate customs duties on essential exports, impacting approximately 97.4% of Omani goods entering the Indian market. It is designed to foster industrial collaborations in sectors such as fertilizers, iron, petrochemicals, and energy, while also streamlining rules of origin to better support local products.
India will respond by lowering tariffs on around 78% of its tariff lines, which will encompass nearly 95% of Oman’s exports by value. In turn, Oman has granted zero-duty access on over 98% of its tariff lines to Indian goods, which include gems and jewelry, textiles, pharmaceuticals, and automobiles.
Additionally, CEPA will enhance India’s connectivity to the Gulf Cooperation Council (GCC) and Middle Eastern markets, as well as West Asia. The agreement is anticipated to lower operational costs for exporters, speed up goods release times, and expedite customs clearance processes.
Special Analysis by Omanet | Navigate Oman’s Market
The Comprehensive Economic Partnership Agreement (CEPA) with India positions Oman to significantly enhance its global market presence, particularly for local products in fertilizers, petrochemicals, and energy industries. This agreement not only reduces customs duties drastically but also presents new opportunities for industrial partnerships and expedited trade procedures, making Oman an attractive hub for investors. Smart investors and entrepreneurs should now leverage this zero-duty access to align with emerging sectors, ensuring they capitalize on the robust trade dynamics between Oman and India.
