Oman Approves India CEPA: A New Trade Era

Oman's lower house, the Shura Council, has given its approval to the Comprehensive Economic Partnership Agreement (CEPA) with India. This significant step moves the pact closer to finalization, with India's Union Cabinet expected to review it shortly. The agreement, which saw negotiations conclude this year, seeks to dramatically lower or abolish customs duties on a wide array of goods traded between the two countries, thereby fostering greater economic exchange.

The economic ties between India and Oman are substantial, with bilateral trade reaching around $10.5 billion during the 2024-25 period. Oman currently stands as India's third-largest export market within the Gulf Cooperation Council. This CEPA builds upon existing trade relations, with India already having a similar agreement in effect with the UAE since May 2022, highlighting a growing strategic economic partnership within the region.

Anticipated benefits for India include a significant boost to exports of goods such as gasoline, iron and steel, and electronics, which currently face a 5% import duty in Oman. Furthermore, services exports are also projected to expand, leveraging India's large consumer base against Oman's smaller population. This agreement marks a pivotal moment in strengthening economic cooperation between the two nations.