Shaped under the leadership of Prime Minister Narendra Modi and Sultan Haitham bin Tarik of Oman, CEPA was signed by India’s Minister of Commerce and Industry Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef.
Under the agreement, Oman agreed to implement zero customs duties on 98.08 percent of tariff lines, providing an unprecedented market access for Indian exports to Oman covering 99.38 percent by value. Labor-intensive products such as jewelry, textiles, leather, footwear, electrical goods, plastics, furniture, agricultural products, pharmaceuticals, medical devices, and automotive goods will see complete removal of customs duties.
CEPA is expected to generate employment in India, support artisans, women entrepreneurs, and the growth of SMEs. The agreement is the second free trade agreement India has signed in the past six months, following the United Kingdom.
In the services sector, CEPA provides significant commitments, with Oman offering a wide service package covering 127 sub-sectors. This includes computer, professional and business services, audiovisual services, R&D, education, and healthcare services.
Mobility opportunities for Indian professionals have also been significantly expanded. Oman has, for the first time, provided simplified arrangements for intra-company transfers, contractual service providers, business management, and independent professionals for temporary entry and stay. Entry conditions for fields such as accounting, taxation, architecture, and medicine have been liberalized. Additionally, Indian companies in major service sectors are guaranteed 100 percent foreign direct investment.
The agreement stands out as one of the first commitments covering all modes of service delivery in traditional medicine, aiming to create new opportunities for India’s AYUSH and healthcare sectors. Accelerated marketing authorizations and acceptance of GMP inspection reports for systems approved by authorities such as the US FDA, EMA, and UK MHRA will save time and cost for Indian pharmaceutical exporters.
CEPA also provides for mutual recognition in halal certification, and Omani authorities are expected to accept India’s NPOP certification for organic products.
With approximately 700,000 Indian residents, Oman serves as an important gateway for Indian goods and services to the Middle East and Africa. Bilateral trade between the two countries exceeds USD 10 billion, and CEPA is expected to contribute further to this volume.
Comments
No comment yet.