FTA boosts $3.7B Indian exports to Oman

In a promising development, India and Oman are on the cusp of finalizing a Comprehensive Economic Partnership Agreement (CEPA), potentially eliminating or reducing customs duties on a wide array of goods.

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A report titled “India-OMAN CEPA: Gateway to Middle Eastern Markets and Beyond,” prepared by the Global Trade Reproach Initiative (GTRI), indicates that over 83.5% of Indian goods, valued at USD 3.7 billion, including gasoline, iron and steel, electronics, and machinery, could experience a substantial boost in Oman.

Presently, these goods face a 5% import duty in Oman, which the CEPA aims to eliminate. Notable export items such as motor gasoline, iron and steel products, electronics, machinery, and others stand to benefit from duty elimination, potentially leading to significant growth in the Omani market.

The report suggests that while duty elimination will positively impact most Indian exports, the extent of growth will also hinge on improvements in product quality. India currently exports over 80% of its goods to Oman facing an average 5% import duty, with relatively few trade barriers in place.

Oman’s import duties vary from 0 to 100%, with specific duties applicable, including a 100% duty on certain meats, wines, and tobacco products. The report emphasizes that the FTA-led tariff elimination by India will particularly benefit raw materials and inputs to industries, fostering greater economic collaboration.