In recent years, India has successfully signed similar Free Trade Agreements (FTAs) with UK, EFTA, Australia, UAE, etc.
Key highlights of India-Oman CEPA
- Market Access: To enhance bilateral trade from USD 10 billion at present,
- Oman will provide zero-duty access on around 98% of Oman’s tariff lines (~99.4% by value) to Indian goods.
- While India has offered tariff liberalization on around 78% of its tariff lines, excluding sensitive products like dairy, tea, coffee, rubber, etc.
- Services and Investment sectors: 100% FDI for Indian companies in major services sector in Oman.
- Traditional medicines: 1st-ever commitment on traditional medicine across all modes, opening opportunities for India’s AYUSH and wellness sectors in gulf.
- Enhanced mobility for Indian professionals: includes increased quotas, liberalizes entry and stay for skilled professionals etc.
- It also addresses non-tariff barriers.
Why is India seeking so many FTAs?
- Export Diversification: through new markets for macroeconomic stability, as exports accounted for 21.2% of India’s GDP in 2024.
- FTAs attract FDIs: FTA partners contributed ~30% of India's FDI equity inflows (2000 -2022).
- FDIs are important forcheaper access to raw materials, technology, skills and capital goods.
- Leveraging Strengths in services sector: E.g. share of India's exports in Oman's services imports is only 5.31%, indicating significant untapped potential.
- Resilience against global shocks: E.g. they enhance autonomy amid US tariff.
Other measures taken by India to boost exports
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