India-Oman CEPA a milestone in Gulf engagement, says Piyush Goyal

India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA), a milestone for Gulf engagement. The deal gives India zero-duty market access on 98% of tariff lines and extends the stay for contractual service suppliers to two years.

India-Oman Comprehensive Economic Partnership Agreement (CEPA) marks a significant milestone in India's strategic engagement with the Gulf region, Commerce and Industry Minister Piyush Goyal said on Thursday, noting that the agreement provides a comprehensive and forward-looking framework for services trade, covering IT, business and professional services.

Piyush Goyal said in a post on X that a major highlight is an eight times extension of permitted duration of stay for Contractual Service Suppliers from 90 days to two years, with the possibility of a further two-year extension.

India and Oman signed a Comprehensive Economic Partnership Agreement on Thursday during Prime Minister Narendra Modi's visit to the Gulf country. Piyush Goyal and Oman's Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef signed the agreement.

Key Provisions and Benefits of the CEPA

In his post X, Piyush Goyal said the deal provides India with unprecedented market access, offering zero-duty on 98.08% of Oman's tariff lines, which cover 99.38% of India's exports by value.

"This will significantly benefit labour-intensive sectors, generating employment and strengthening MSMEs, artisans, and women-led enterprises. Key export sectors, including textiles, leather, footwear, gems & jewellery, engineering goods, plastics, furniture, agricultural products, pharmaceuticals, medical devices, and automobiles, will gain from full tariff elimination, reinforcing India's manufacturing and export competitiveness," he said.

The minister said that protection has been given to India's sensitive sectors to safeguard the interests of our farmers and small businesses.

"With enhanced mobility provisions, there will be more avenues for our skilled professionals in key sectors such as accountancy, taxation, architecture, medical, and allied services. 100% FDI for Indian companies in major services sectors will unlock high-value opportunities for Indian talent," he said.

"The agreement provides a comprehensive and forward-looking framework for services trade, covering IT, business and professional services, R&D, education, health, and audio-visual services. A major highlight is an 8 times extension of permitted duration of stay for Contractual Service Suppliers from 90 days to two years, with the possibility of a further two-year extension," he added.

Enhanced Cooperation and Streamlined Approvals

The Union Minister said India-Oman CEPA facilitates mutual recognition arrangements for Halal certification and accepts India's NPOP certification for organic products, thereby enhancing cooperation in standards and conformity assessment.

"It also fast-tracks marketing authorizations for Pharmaceutical products approved by USFDA, EMA, UKMHRA, etc. thus reducing time and cost for Indian pharma exporters," he said.

Pioneering Agreement on Traditional Medicine

Goyal said a landmark element of the Agreement is Oman's first-ever commitment on Traditional Medicine, creating new opportunities for India's AYUSH and wellness ecosystem in the Gulf region.

"This is a balanced and ambitious agreement that will boost bilateral trade, strengthen supply chains, create employment, and deepen long-term economic partnership, in line with India's vision of inclusive and sustainable growth," he said.

Deepening a Long-standing Strategic Partnership

Oman is an important strategic partner in the region and is a key gateway for Indian goods and services to the wider Middle East and Africa.

As per the data shared by the Commerce Ministry, nearly seven lakh Indian nationals reside in Oman, including Indian merchant families with a presence of over 200-300 years, contributing significantly to Oman's economy and society.

Indian enterprises have built a strong presence in Oman, with over 6,000 Indian establishments operating across sectors. Annual remittances of around USD 2 billion further reflect the depth of economic engagement. (ANI)

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