India-Oman FTA: CEPA agreement between India and Oman implemented, business of both the countries will get new momentum.
Delhi. Commerce and Industry Minister Piyush Goyal described the implementation of the free trade agreement between India and Oman from Monday as the beginning of a new chapter in the relations between the two countries. “Today the India-Oman Comprehensive Economic Partnership Agreement (CEPA) comes into force, and I am writing about how this agreement will further strengthen the economic and strategic ties between the two countries,” Goyal said on social media.
The Commerce Minister said, “Inspired by Prime Minister Narendra Modi’s vision of expanding India’s global trade partnerships, this agreement will significantly benefit India’s students, artisans, women, farmers, fishermen and small and medium enterprises by opening new markets, increasing exports, attracting investments and accelerating employment generation.”
It is noteworthy that both the countries had signed this agreement in December last year. This agreement is coming into effect at a time when India’s trade with countries in the region has been affected due to the conflict situation in the Gulf region. Oman is a small country with a population of 5.5 million and a GDP of $110 billion, so the level of trade between India and Oman is likely to remain within the limits of population and economy.
Bilateral trade between India and Oman was worth $10.61 billion in 2024-25. Under the bilateral agreement, India will get 100 percent duty exemption on 98.08 percent of its export list in the Oman market. This is likely to benefit engineering, pharmaceutical, marine products, textiles, chemicals, electronics, plastics and gems and jewelery sectors. The Government has kept in mind the interests of the labour-intensive domestic sector under this agreement.
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