MUSCAT : Oman has taken a bold step towards deepening economic ties with India through the Comprehensive Economic Partnership Agreement (CEPA), discussed in detail at a high-level media briefing on Tuesday at the Diplomatic Club in Muscat.
The CEPA aims to enhance trade and investment cooperation between the two nations by liberalising trade in services, reducing tariff and non-tariff barriers, and facilitating mutual investments. It also establishes a strategic framework for bilateral cooperation, ensures fair competition, and provides preferential treatment for goods and services of national origin.
India remains one of Oman’s most important trading partners, ranking sixth in trade volume. In 2024, the total trade between the two nations reached approximately RO 2.3 billion (around USD 6.1 billion). Despite a trade surplus in favour of Oman in 2021 and 2022, the trade balance recorded a deficit in both 2023 and 2024.
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Oman’s key non-oil exports to India include urea, ethylene, polyethylene, and gypsum, with the agreement expected to open new doors for market access and tariff reductions on these products. CEPA is also aligned with Oman Vision 2040, aiming to diversify the economy and enhance the competitiveness of Omani industries globally.
On the Indian side, the agreement unlocks significant market potential. With a GDP of approximately USD 3.9 trillion and an expected growth rate of 6.4% between 2026–2030, India presents a dynamic trade environment. In 2024, India’s exports stood at USD 434.4 billion, while imports reached USD 697.75 billion, with major imports including petroleum, electronics, and chemicals.
The briefing also highlighted several economic opportunities created by CEPA, including attracting foreign investment, boosting Omani non-oil exports, stimulating activity in special and free zones, and potentially lowering prices for consumers.
For CEPA to yield maximum economic impact, the Ministry emphasized the importance of supporting policies, particularly those that finance small and medium enterprises (SMEs), build export capabilities, and enhance industrial competitiveness.
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