New Delhi [India], December 18 (ANI): The proposed India-Oman Comprehensive Economic Partnership Agreement (CEPA) is expected to significantly boost India's industrial exports, as import duties in Oman currently range from zero to as high as 100 per cent on select products, according to a report by the Global Trade Research Initiative (GTRI).

The report noted that at present, over 80 per cent of Indian goods enter Oman at an average tariff of around 5 per cent. However, duties vary widely across products, with very high tariffs imposed on items such as certain meats, alcohol and tobacco.

GTRI said that the elimination or reduction of these tariffs under the CEPA is likely to improve the competitiveness of Indian industrial exports in the Omani market.

It stated, 'Tariff elimination under the CEPA is expected to improve competitiveness for Indian industrial exports, though sustained growth will depend on quality upgrades and product differentiation in Oman's relatively small market.'

India and Oman are set to sign the CEPA on Thursday, covering goods, services and investment. While the agreement may be implemented after a few months, it is expected to play a key role in strengthening bilateral economic ties. The pact aims to cut tariffs across a wide range of products, helping boost India's exports to Oman, which currently stand at USD 4.1 billion.

For India, the main gains lie in merchandise exports. India's exports to Oman stood at USD 4.1 billion in FY2025, led by naphtha (USD 747.6 million) and petrol (USD 561 million), alongside calcined alumina (USD 313 million), machinery (USD 231 million), aircraft (USD 165 million), rice (USD 182 million), iron and steel articles (USD 120 million), beauty and personal care products (USD 128.6 million) and ceramic products (USD 79.9 million).

The agreement will also reinforce Oman's position as a key energy supplier to India. Energy and fertiliser imports worth USD 6.6 billion, including crude oil, LNG and chemicals, are expected to benefit from India's tariff commitments under the CEPA.

According to the report, the India-Oman CEPA broadly follows the template of India's UAE Free Trade Agreement, with a focus on reducing regulatory barriers. This includes the possibility of fast-track approvals for Indian pharmaceutical products, which could help Indian companies expand their presence in Oman.

While Oman's relatively small domestic market may limit the scale of trade expansion, the CEPA is expected to strengthen India's strategic and investment footprint in the Gulf region. The two countries already have more than 6,000 joint ventures in place.

The agreement aims to substantially reduce or eliminate tariffs on a wide range of goods, liberalise services trade and facilitate investment flows. Bilateral trade between India and Oman stood at about USD 10.5 billion in 2024-25.

The report highlighted that beyond trade, the CEPA carries strong strategic importance. With Indian investments exceeding USD 7.5 billion, especially in Oman's Sohar and Salalah free zones, the agreement represents a significant step in strengthening India's long-term economic and strategic presence in the Middle East. (ANI)