India-Oman Comprehensive Economic Partnership Agreement, CEPA has come into force today. Commerce and Industry Minister Piyush Goyal said the CEPA will deepen the economic and strategic ties between the two nations.
In an article published in a national daily, Mr Goyal mentioned that the agreement will significantly benefit the country’s students, artisans, women, farmers, fishermen, and Micro, Small and Medium Enterprises by opening new markets, boosting exports, attracting investments, and accelerating job creation.
India has a deep economic and people-to-people connection with Oman, which is home to nearly seven lakh Indians. The Union Minister said Indian remittances from Oman amount to about 2 billion dollars annually, while more than six thousand Indian enterprises operate there.
Mr Goyal said that the Comprehensive Economic Partnership Agreement immediately gives 100% duty-free market access in Oman to 98 per cent of tariff lines covering 99.38% of exports.
This marks a dramatic improvement over the pre-CEPA system, which allowed only 15.3% of India’s exports to enter Oman at zero duty. The Minister said that goods from India that currently face a 5% import duty in Oman will become more competitive.