June 1: The India–Oman Comprehensive Economic Partnership Agreement is expected to strengthen economic integration between India and Oman by expanding market access, improving trade facilitation and enhancing opportunities for exporters, professionals and investors across multiple sectors.
Under the CEPA, 99.38 per cent of India’s exports by value will receive duty-free access to the Omani market, covering a broad range of products including agriculture and processed food, marine products, textiles, gems and jewellery, pharmaceuticals, engineering goods, electronics, automobiles and footwear.
“The agreement is expected to create new opportunities for MSMEs and service providers by reducing trade barriers. India is well positioned in key labour intensive sectors viz. agriculture, food processing, pharmaceuticals, textiles, gems and jewellery that will benefit substantially from the agreement. The agreement also strengthens India’s trade connectivity with the GCC and East Africa through strategic logistics infrastructure”, says Mr. Rajeev Juneja, President PHDCCI.
The agriculture and processed food sector is likely to see expanded opportunities for products such as basmati rice, cashews, onions, potatoes, sweet biscuits, butter and bovine meat products.
The marine products sector is expected to benefit from the removal of import duties on shrimp, fish and other seafood products. Coastal states with significant seafood exports, including Andhra Pradesh, Kerala, Tamil Nadu and Gujarat, are clear winners, he added.
In the gems and jewellery sector, the elimination of tariffs is expected to enhance the competitiveness of Indian exporters, particularly manufacturing clusters located in Surat, Jaipur, Mumbai, Kolkata and Chennai.
The pharmaceutical sector is expected to benefit from faster regulatory approvals and improved market access. Pharmaceutical products approved by major international regulators, including the USFDA and EMA, will qualify for accelerated marketing authorization procedures.
Compliance burden, a major hurdle in exports, will be substantially reduced with the agreement coming into force which includes provisions for recognition of inspection and certification systems, he said.
The CEPA also includes one of the most comprehensive services market access commitments offered by Oman to any country. Indian professionals and businesses in information technology, engineering, healthcare, education, financial services, construction and consultancy services are expected to benefit from improved mobility provisions.
“The India–Oman CEPA agreement is expected to support export growth, employment generation and greater participation in regional markets. Faster regulatory approvals, and enhanced investment cooperation will particularly benefit sectors such as information technology, healthcare, engineering, and start-ups where India has strong relative competitive advantage”, says Dr. Ranjeet Mehta, SG & CEO, PHDCCI.