India signs trade pact with Oman for duty-free exports, Pg1

Key Highlights:

• India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on Thursday.
• Oman will provide India duty-free access to 98.08% of its tariff lines, covering 99.38% of India’s exports to Oman.
• India has offered liberalised tariffs on 77.79% of its total tariff lines, covering 94.81% of its imports from Oman.
• In 2024-25, India exported $4.06 billion worth of merchandise to Oman and imported $6.5 billion worth of goods.

Detailed Insights:

• The CEPA includes concessions to benefit India’s service sector, including worker mobility.
• This is Oman's first bilateral agreement since its deal with the U.S. in 2006, and India's second with a GCC country, following the UAE in February 2022.
• The agreement aims to boost trade, investment, and create opportunities for growth, employment, and innovation.
• The deal is expected to benefit labour-intensive sectors, MSMEs, artisans, and women-led enterprises.
• A trade deal with Oman serves as a gateway for India to the GCC region, eastern Europe, central Asia, and Africa.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A trade agreement between two countries to reduce or eliminate tariffs and promote trade in goods, services, and investments.
• Tariff Lines: Specific product categories subject to tariffs, as defined in a country's tariff schedule.
• Gulf Cooperation Council (GCC): A regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf except for Iraq.