Relevance: GS-2 (India–West Asia Relations), GS-3 (External Trade) | Source: Indian Express, Ministry of Commerce
News
The Union Cabinet has approved the India–Oman Free Trade Agreement (CEPA), expected to be signed during the Prime Minister’s visit to Oman. Oman’s Parliament has also cleared the draft agreement.
What the FTA Includes
- Oman will provide up to 98% tariff-free access to Indian goods.
- Current Omani import duties range from 0% to 100%; the CEPA will reduce tariffs on most industrial and agricultural items.
- Key Indian exports likely to benefit:
- Petroleum products
- Aluminium oxide
- Rice and cereals
- Machinery, electrical goods, plastics, iron and steel
Why the FTA Matters for India
- Oman is a major trade partner in the Gulf, with bilateral trade worth 10.6 billion dollars.
- Offers India a strategic gateway to Gulf, Africa, and West Asia supply chains.
- Strengthens India’s position amid ongoing FTA negotiations with the United Kingdom, European Union, and Gulf Cooperation Council.
Significance
The CEPA deepens India’s economic footprint in West Asia and enhances long-term export competitiveness.
| UPSC Prelims Value Box Free Trade Agreement (FTA): A treaty between economies to reduce or eliminate tariffs and improve market access for goods and services. Gulf Cooperation Council (GCC): A regional grouping that influences India’s trade architecture in West Asia; Oman is one of its six members. |
Q. Consider the following statements regarding the India–Oman CEPA:
- Oman has agreed to offer tariff-free access to over ninety percent of India’s exports.
- Oman’s existing import duties on several items can go up to one hundred percent.
- India’s exports to Oman currently exceed its imports from Oman.
How many of the above statements are correct?
A. One only
B. Two only
C. All three
D. None
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