India-Oman trade pact to open huge export opportunities for labour-intensive sectors: Experts

India-Oman free trade agreement has opened huge export opportunities for domestic labour-intensive and value-added sectors such as textiles, gems and jewellery and marine products, experts say. Beyond goods, the comprehensive economic partnership agreement (CEPA) also sets the architecture for deeper services and mobility linkages, they said. The pact was operationalised on June 1.  “Taken together, the CEPA does not merely lower tariffs; it builds a durable framework across goods, services, mobility and investment that should support a sustained step-up in bilateral commerce over the medium-term,” Gulzar Didwania, Partner, Deloitte India, said.

He said that the most strategic dimension of the India-Oman CEPA is its contribution to India’s energy security and supply-chain resilience. India remains a net importer of crude from Oman, with crude imports rising from around USD 0.1 billion in 2006 to USD 3.6 billion in 2022. The country has simultaneously built a meaningful export corridor in refined petroleum products, which peaked at USD 2.2 billion in 2022 before moderating to USD 1.3 billion in 2024. “That two-way structure reinforces the CEPA’s relevance. It brings a more predictable framework to a relationship that is already commercially significant on both sides of the energy ledger and provides for a long-term trade strategy for the Gulf region,” Didwania said.

Sanjay Budhia, Co-Chair, CII National Committee on Exports and Managing Director, Patton International Ltd, said the agreement will help boost bilateral trade relations.

“This agreement encompasses trade, investment, services, professional mobility, and regulatory cooperation, creating new opportunities for businesses in both countries,” Budhia said.