Source: TOI
Context:
India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA), India’s second major trade pact in West Asia after the UAE.
About India–Oman CEPA
- A comprehensive trade agreement covering goods, services, investment, mobility, and regulatory cooperation.
- Marks Oman’s first bilateral trade deal since its FTA with the United States in 2006.
Key Features
Zero-duty Market Access
- Oman removed customs duties on 98.08% tariff lines, covering 99.38% of India’s exports.
- Major boost for Indian price competitiveness in West Asian markets.
Gains for Labour-Intensive Sectors
Tariff elimination to benefit:
- Textiles & garments
- Leather products
- Gems & jewellery
- Engineering goods
- Pharmaceuticals
- Automobiles
→ Supports MSMEs, jobs and export-led growth.
Services Sector Liberalisation
- Oman opened 127 sub-sectors for Indian services, including:
- IT & digital services
- R&D
- Professional services
- Education
- Healthcare
Enhanced Workforce Mobility (Mode 4)
- Intra-corporate transferee quota raised from 20% to 50%
- Contractual service suppliers can stay up to 2 years, extendable further
100% FDI in Services
- Full foreign ownership allowed to Indian firms in major Omani service sectors
- Enables long-term commercial presence and Gulf region expansion
AYUSH Access – First Global Commitment
- First time a trade partner committed to traditional medicine across all modes
- Opens Gulf region for Ayurveda, yoga and holistic wellness exports
Faster Pharma Approvals
- Oman to accept certificates from:
- USFDA
- EMA
- UKMHRA
→ Cuts regulatory costs & time → boosts Indian pharma exports
