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India-Oman CEPA Deal: Why It's a Gateway to a Broader GCC Trade Pact

Former Foreign Secretary Harsh Vardhan Shringla is calling the new India-Oman trade deal a very important agreement. He says it should pave the way for a broader comprehensive pact with the entire Gulf Cooperation Council. The deal grants Indian exporters massive tariff concessions on goods ranging from gems to pharmaceuticals. It was signed during Prime Minister Modi's visit to Oman, marking a major step in India's economic engagement with the Gulf region.

Key Points: Shringla Hails India-Oman CEPA as Step to GCC Trade Agreement

  • The CEPA offers zero-duty access for over 98% of Oman's tariff lines for Indian exports
  • Key sectors like gems, textiles, and pharmaceuticals receive complete tariff elimination
  • The deal was signed during PM Modi's state visit to Oman by ministers Piyush Goyal and Qais Al Yousef
  • This is India's second FTA in six months, following the agreement with the United Kingdom
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India should look at comprehensive agreement with GCC: Former FS Shringla on India-Oman CEPA

Former Foreign Secretary Harsh Vardhan Shringla says the India-Oman CEPA is a crucial step towards a comprehensive trade deal with the entire Gulf Cooperation Council.

"I think it is a very important deal that will give our exporters and manufacturers a lot of opportunities. - Harsh Vardhan Shringla"

New Delhi, December 18

Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla on Thursday hailed the newly signed India-Oman Comprehensive Economic Partnership Agreement (CEPA) as a "very important deal", noting that the deal can open a broader comprehensive trade agreement with the entire Gulf Cooperation Council (GCC), similar to its approaches with the European Union, ASEAN, and EFTA countries.

Shringla acknowledged the significance of the deal with Oman, noting that it will create significant opportunities for Indian exporters and manufacturers and aligns with India's ongoing trade initiatives, including the recent agreement with the United Arab Emirates (UAE).

"I think it is a very important deal that will give our exporters and manufacturers a lot of opportunities. It is also in line with what we have already started with the UAE, and slowly, I think we should look at a comprehensive agreement with the GCC (Gulf Cooperation Council) as a whole. Like we are attempting with the European Union, we already have an FTA with ASEAN and with EFTA countries," he stated.

Shringla's comment comes after India and Oman signed the Comprehensive Economic Partnership Agreement today, marking a significant step toward a stronger economic partnership.

The agreement was signed by the Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry & Investment Promotion Qais bin Mohammed Al Yousef, during PM Modi's two-day state visit to the country.

The CEPA marks an important milestone in India's engagement with the Gulf region and reflects the shared commitment to deepen bilateral economic integration.

This is the 2nd Free Trade Agreement signed in the last 6 months, following the United Kingdom, and is part of a strategy to sign trade agreements with developed economies that do not compete with our labour-intensive interests and provide opportunities for Indian businesses.

According to the Ministry of Commerce & Industry, the CEPA secures unprecedented tariff concessions for India from Oman. Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India's exports to Oman.

All major labour-intensive sectors, including Gems & Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and Automobiles, receive complete tariff elimination. Of the above, immediate tariff elimination is being offered for 97.96 per cent of Tariff Lines.

India is offering tariff liberalisation on 77.79 per cent of its total tariff lines, which covers 94.81 per cent of India's imports from Oman by value.

- ANI

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Reader Comments

S
Sarah B
As someone working in the pharmaceutical export sector, this CEPA is a game-changer. Zero-duty access for our medicines and medical devices to Oman will boost our competitiveness significantly. Hoping the GCC-wide agreement materializes soon!
R
Rohit P
Good step, but we must be cautious. While opening markets is great, we need to ensure our domestic industries, especially MSMEs, are protected and prepared for competition. The government should provide adequate support and transition periods.
P
Priya S
This is about more than just trade. Strengthening ties with Gulf nations has deep cultural and people-to-people significance. Millions of Indians work there. A comprehensive GCC agreement would bring stability and prosperity for our diaspora too. 🙏
M
Michael C
The strategic thinking here is impressive. Following up the UAE deal with Oman, and eyeing the entire GCC shows a clear, proactive foreign trade policy. It positions India as a reliable partner in a volatile region.
K
Kavya N
Hope the benefits reach the grassroots. My family has a small leather goods business in Agra. If this agreement simplifies exports and reduces costs as promised, it could be a lifeline for many such traditional artisans. Fingers crossed!

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