India-Oman Trade Deal: Safeguarding Domestic Sectors

India has signed a trade pact with Oman, ensuring protection for domestic farmers and MSMEs by not extending duty concessions on several products, including agricultural items such as dairy and sports goods. Sensitive products are excluded, with tariff-rate quotas imposed on some goods of export interest to Oman.

India has taken a strategic step to protect its domestic farmers and MSMEs by refraining from offering duty concessions on a variety of products in its recent trade agreement with Oman. The Comprehensive Economic Partnership Agreement (CEPA), signed in Muscat, shields many sensitive products from tariff reductions.

The Indian commerce ministry announced that no duty concessions will be granted for products like dairy, tea, coffee, rubber, gold, silver, jewellery, and several labor-intensive products such as footwear and sports goods. These items are placed in the exclusion category, safeguarding the interests of the local economy.

Additionally, for certain exports that hold importance for Oman but are sensitive to India, a tariff-rate quota (TRQ) has been established. The TRQ allows limited duty concessions up to a set quota, beyond which standard import duties apply. Meanwhile, Oman has made a notable concession by allowing Indian firms to import marble blocks, which are typically restricted for export in the Gulf nation.

(With inputs from agencies.)