Score:
9/15
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GS2
International Relations
15 marks
India recently signed a Comprehensive Economic Partnership Agreement (CEPA) with Oman. Examine the key features of the India–Oman CEPA and analyse its strategic and economic significance for India’s West Asia trade policy. Also discuss the challenges associated with the agreement.
Student’s Answer
Evaluation by SuperKalam
Demand of the Question
- Examine the key features of the India–Oman CEPA
- Analyse its strategic and economic significance for India’s West Asia trade policy
- Discuss the challenges associated with the agreement
What you wrote:
The India - Oman CEPA offers India near-total duty-free access for exports (textiles, pharma, gems, auto) and boosts Services (IT, healthcare) via enhanced professional mobility, strengthening West Asia ties, diversifying trade, and supporting energy security, aligning with India's "Act West" policy against Western tariffs.
The India - Oman CEPA offers India near-total duty-free access for exports (textiles, pharma, gems, auto) and boosts Services (IT, healthcare) via enhanced professional mobility, strengthening West Asia ties, diversifying trade, and supporting energy security, aligning with India's "Act West" policy against Western tariffs.
Suggestions to improve:
- Could begin with a brief definition (e.g., "CEPA is a comprehensive trade agreement covering goods, services, and investment liberalization between two countries")
- Can mention the timeline context (e.g., "signed in May 2024 as India's first CEPA with a Gulf nation")
What you wrote:
⇒ Key features of India - Oman CEPA
1. Market Access: Oman offers zero-duty access on over 98% of tariff lines, covering nearly 99.4% of Indian exports, including labour intensive sectors like textiles, leathers, gems auto, pharma, and agriculture
2. Services Liberalization: Deep commitments across 127 service sub-sectors (IT, healthcare, education, R&D), including for traditional medicine (AYUSH)
3. Enhanced Mobility: First-ever wide commitments for Indian professionals (accountants, architects, medical experts) with increased quota for intra-corporate transfers and longer stay options.
4. Standards Harmonization: Mutual recognition of standards, faster clearances and SPS (Sanitary & Phytosanitary) measures to ease non-tariff barriers.
5. Investment & MSMEs: New avenues for investment, focusing on MSME led growth and integration into GCC value chains.
⇒ Key features of India - Oman CEPA
1. Market Access: Oman offers zero-duty access on over 98% of tariff lines, covering nearly 99.4% of Indian exports, including labour intensive sectors like textiles, leathers, gems auto, pharma, and agriculture
2. Services Liberalization: Deep commitments across 127 service sub-sectors (IT, healthcare, education, R&D), including for traditional medicine (AYUSH)
3. Enhanced Mobility: First-ever wide commitments for Indian professionals (accountants, architects, medical experts) with increased quota for intra-corporate transfers and longer stay options.
4. Standards Harmonization: Mutual recognition of standards, faster clearances and SPS (Sanitary & Phytosanitary) measures to ease non-tariff barriers.
5. Investment & MSMEs: New avenues for investment, focusing on MSME led growth and integration into GCC value chains.
Suggestions to improve:
- Could add institutional framework details (e.g., "Joint Committee for implementation and review with annual meetings")
- Can include rules of origin provisions (e.g., "35% value addition requirement for preferential access, supporting Make in India")
What you wrote:
⇒ Strategic & Economic Significance for India
1. West Asia GCC Diversification: Reduces reliance on Western markets amid global trade uncertainties (US tariffs, EU carbon tax) aligning with India's China-plus-one strategy.
2. Strengthened Gulf Presence: Deepens economic ties with a stable Gulf partner (Oman), bolstering India's strategic footprint in the region.
3. Energy Security: Supports stable crude oil supplies and petrochemical partnerships, vital for India's industry.
4. India - Middle East - Europe Corridor (IMEC): Enhances India's leadership in IMEC, countering China's Belt and Road Initiative (BRI)
5. People - Centric Growth: Benefits Indian workers, professionals and MSMEs, integrating Indian human capital into the Gulf's services economy.
⇒ Strategic & Economic Significance for India
1. West Asia GCC Diversification: Reduces reliance on Western markets amid global trade uncertainties (US tariffs, EU carbon tax) aligning with India's China-plus-one strategy.
2. Strengthened Gulf Presence: Deepens economic ties with a stable Gulf partner (Oman), bolstering India's strategic footprint in the region.
3. Energy Security: Supports stable crude oil supplies and petrochemical partnerships, vital for India's industry.
4. India - Middle East - Europe Corridor (IMEC): Enhances India's leadership in IMEC, countering China's Belt and Road Initiative (BRI)
5. People - Centric Growth: Benefits Indian workers, professionals and MSMEs, integrating Indian human capital into the Gulf's services economy.
Suggestions to improve:
- Could include trade volume context (e.g., "bilateral trade of $7.5 billion in 2023-24 with potential to reach $12 billion by 2030")
- Can highlight diaspora dimension (e.g., "benefits 0.8 million Indian diaspora through enhanced business opportunities and professional mobility")
What you wrote:
⇒ Challenges
1. Trade Deficit: Oman historically runs a trade surplus with India, a structural imbalance that needs deeper diversification to fully balance trade.
2. Untapped Services Potential: India's share in Oman's services imports is low, requiring focused efforts to realize potential in high-value services.
3. Geopolitical Risks: Regional instability and services sensitive products exclusions (dairy, tea, gold) present ongoing hurdles.
4. Omanisation and Labour Market Sensitivities: Oman's policy emphasis on workforce nationalisation (Omanisation) creates periodic uncertainty for India professionals and skilled workers.
⇒ Challenges
1. Trade Deficit: Oman historically runs a trade surplus with India, a structural imbalance that needs deeper diversification to fully balance trade.
2. Untapped Services Potential: India's share in Oman's services imports is low, requiring focused efforts to realize potential in high-value services.
3. Geopolitical Risks: Regional instability and services sensitive products exclusions (dairy, tea, gold) present ongoing hurdles.
4. Omanisation and Labour Market Sensitivities: Oman's policy emphasis on workforce nationalisation (Omanisation) creates periodic uncertainty for India professionals and skilled workers.
Suggestions to improve:
- Could discuss implementation capacity (e.g., "need for enhanced trade facilitation infrastructure and customs modernization")
- Can mention competitive landscape (e.g., "competition from China-Oman FTA and EU-GCC negotiations affecting market share")
What you wrote:
The India - Oman CEPA represents a balanced, ambitious and future-oriented trade agreement that strengthens India's strategic presence in the Gulf region. The CEPA agreement aligns with India's broader vision of inclusive growth, employment generation and resilient global economic engagement.
The India - Oman CEPA represents a balanced, ambitious and future-oriented trade agreement that strengthens India's strategic presence in the Gulf region. The CEPA agreement aligns with India's broader vision of inclusive growth, employment generation and resilient global economic engagement.
Suggestions to improve:
- Could add specific next steps (e.g., "leveraging this template for broader GCC integration through UAE-Saudi Arabia CEPAs")
- Can link to SDG goals (e.g., "aligning with SDG 8 for decent work and SDG 17 for global partnerships")
Your answer demonstrates strong analytical depth with excellent use of specific data and strategic context. The structure is logical and covers all major demands comprehensively. Minor improvements in institutional details and quantitative projections would enhance the response further.
Demand of the Question
- Examine the key features of the India–Oman CEPA
- Analyse its strategic and economic significance for India’s West Asia trade policy
- Discuss the challenges associated with the agreement
What you wrote:
The India - Oman CEPA offers India near-total duty-free access for exports (textiles, pharma, gems, auto) and boosts Services (IT, healthcare) via enhanced professional mobility, strengthening West Asia ties, diversifying trade, and supporting energy security, aligning with India's "Act West" policy against Western tariffs.
The India - Oman CEPA offers India near-total duty-free access for exports (textiles, pharma, gems, auto) and boosts Services (IT, healthcare) via enhanced professional mobility, strengthening West Asia ties, diversifying trade, and supporting energy security, aligning with India's "Act West" policy against Western tariffs.
Suggestions to improve:
- Could begin with a brief definition (e.g., "CEPA is a comprehensive trade agreement covering goods, services, and investment liberalization between two countries")
- Can mention the timeline context (e.g., "signed in May 2024 as India's first CEPA with a Gulf nation")
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