Oman FTA to boost capital flow

TRADE EXPERTS SAID the significance of the deal is more than what the current trade suggests, as it would help strengthen New Delhi’s economic and geopolitical presence at the mouth of the Gulf.

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“The CEPA would deepen Indian companies’ role in Omani logistics and supply chains, and will be in sync with India’s wider strategy on energy, services, and regional connectivity,” according to think tank GTRI.

The CEPA opens up zero-duty access on 98.08% of tariff lines, covering 99.38% of India’s exports to Oman. In return, India will open up 77% of its tariff lines for Oman via tariffrate quotas; this will cover 94% of its total exports to India. While on most products the tariffs will straightaway drop in zero, in petrochemicals the reduction will be in a phased manner.

The CEPA further provides for 100% foreign direct investment(FDI) by Indian companies in major services sectors in Oman through commercial presence, opening a wide avenue for India’s services industry to expand operations in the region. In addition, both sides have agreed to hold future discussions on social security coordination once Oman’s contributory social security system is implemented.