Relevance: GS-II (International Relations), GS-III (External Trade)
Source: The Hindu; Ministry of Commerce and Industry
News in Brief
India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), granting duty-free access to almost 99% of Indian exports to Oman. In return, India will liberalise almost 95% of imports from Oman.
Key Provisions
- Covers goods, services, investment and mobility of professionals.
- Expected to benefit engineering goods, textiles, chemicals and services exports.
- Includes facilitation of movement of Indian workers in select service sectors.
Why It Matters
- Strengthens India’s economic footprint in the Gulf region.
- Oman acts as a gateway to West Asia and Africa.
- Enhances trade certainty amid global supply-chain shifts.
Trade Snapshot (2024–25):
- India’s exports to Oman: $4.06 billion
- Imports from Oman: $6.5 billion
| UPSC Value Box CEPA is a deep trade agreement covering tariff reduction + services + investment, going beyond a standard Free Trade Agreement. The Ministry of Commerce and Industry negotiates and implements India’s trade agreements. |
Q. With reference to the India–Oman CEPA, consider the following statements:
- It provides duty-free access to more than 98% of India’s tariff lines.
- It covers trade in goods only, excluding services and investment.
- Oman is among India’s key trading partners in the Gulf region.
Which of the statements are correct?
A. 1 and 3 only
B. 1 only
C. 2 and 3 only
D. All three
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