India-Oman CEPA Signed: Diversifying Trade, Countering US Tariffs

• India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat, marking a strategic shift to diversify trade and reduce reliance on single markets amidst global trade restrictions.
• The CEPA aims to counter punitive tariffs, particularly from the US, which currently imposes 50% import duties on Indian goods, impacting labour-intensive sectors like textiles and auto components.
• Oman will provide zero-duty access on over 98% of its tariff lines, covering 99.38% of India's exports by value, benefiting sectors like gems, textiles, pharma, and engineering goods.
• Beyond goods, the agreement strengthens services trade, allowing 100% FDI for Indian companies in key sectors and improving mobility for skilled professionals with increased quotas and longer stays.
• This deal, Oman's first bilateral trade agreement since 2006, is part of India's broader strategy to expand its trade network, following recent pacts with the UK, UAE, and Australia.

Why It Matters: India's CEPA with Oman strategically diversifies trade, counters US tariffs, and boosts economic ties in West Asia.