India-Oman trade pact to boost exports: Industry

New Delhi, Dec 18 (PTI) The free trade pact between India and Oman will help New Delhi boost exports of a host of labour-intensive sectors to the Gulf nation, according to the domestic industry.

The Comprehensive

Economic Partnership Agreement (CEPA) was signed in Muscat on Thursday.

Federation of Indian Export Organisations (FIEO) President S C Ralhan stated that the CEPA will strengthen India’s export competitiveness across goods and services.

“This near-universal duty-free access will significantly enhance the competitiveness of Indian goods and benefit key labour-intensive sectors such as textiles and apparel, leather and footwear,” he said.

Oman’s strategic location makes it a vital gateway to the Gulf and Africa, and the pact will enable Indian exporters integrate more effectively into regional value chains, and diversify markets, he added.

International trade expert and Hi-Tech Gears Chairman Deep Kapuria said after having a tough year on the international trade front, India is closing the year on a positive note by signing a trade deal with Oman, the second country in the Middle East region after the UAE.

With the UAE, India implemented a similar pact in May 2022.

“The pact with Oman would further help Indian industry across sectors to expand its presence in the region. The reduction in tariffs would help India diversify its exports to new markets. Besides, this deal is also important from the perspective of India’s energy security,” Kapuria said.

Anish Shah, Group CEO and MD, Mahindra Group said the pact allows Tech Mahindra to expand collaboration in digital transformation, clean energy, supply chains and mobility. Tech Mahindra has a technology development centre in Muscat.

Industry body CII said that the CEPA with Oman enhances market access and trade facilitation while creating an enabling framework for services, investment, technology collaboration, and mobility of professionals.

The Gem and Jewellery Export Promotion Council (GJEPC) said India’s exports from the sector to Oman stood at USD 35 million in 2024.

With duty-free access under the CEPA, the council estimates exports could rise to USD 150 million over the next three years, driven by improved price competitiveness, expanded product offerings, and deeper industry collaboration, it said.

“Zero duty access will significantly improve competitiveness for Indian exporters and encourage direct sourcing. We see strong growth opportunities for polished diamonds and gold jewellery, along with emerging demand for silver, platinum and imitation jewellery,” it added. PTI RR ANU ANU