India-Oman Trade Deal: Strategic Gateway to the Gulf

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is a strategic move to enhance market access, professional mobility, and India's geopolitical influence in a vital maritime corridor. It strengthens India's economic presence in Oman, boosting roles in logistics, energy, and services while facilitating Indian exports with reduced tariffs.

India's strategic consolidation in the Gulf region takes a significant step forward with the new trade agreement with Oman, reports the Global Trade Research Initiative (GTRI). The pact, although not a major trade breakthrough, is crucial for securing market access and professional mobility while enhancing New Delhi's influence in a critical maritime and energy corridor.

According to GTRI, India's bilateral trade with the small economy of Oman, totalling USD 10.5 billion, is enriched by more than just tariff reductions. The agreement establishes India's economic presence at the Gulf's mouth, reinforcing the role of domestic firms in Oman's logistics and supply chains, and aligning with India's larger strategy in energy, services, and regional links.

The CEPA, India's sixth trade pact in five years, reduces tariffs on Indian exports like refined petroleum, machinery, and consumer goods. While more than 80% of Indian goods enter Oman with low tariffs, duties on some remain high, making this agreement crucial for competitiveness. The agreement is also expected to benefit Oman in energy and industrial inputs, signify ongoing India-Oman collaboration in sectors like IT, education, and healthcare.

(With inputs from agencies.)