In recent years, India has successfully signed similar Free Trade Agreements (FTAs) with UK, EFTA, Australia, UAE, etc.

Key highlights of India-Oman CEPA

• Market Access: To enhance bilateral trade from USD 10 billion at present, 
  • Oman will provide zero-duty access on around 98% of Oman’s tariff lines (~99.4% by value) to Indian goods.
  • While India has offered tariff liberalization on around 78% of its tariff lines, excluding sensitive products like dairy, tea, coffee, rubber, etc.
• Services and Investment sectors: 100% FDI for Indian companies in major services sector in Oman.
• Traditional medicines: 1st-ever commitment on traditional medicine across all modes, opening opportunities for India’s AYUSH and wellness sectors in gulf.
• Enhanced mobility for Indian professionals: includes increased quotas, liberalizes entry and stay for skilled professionals etc.
• It also addresses non-tariff barriers. 

Why is India seeking so many FTAs?

• Export Diversification: through new markets for macroeconomic stability, as exports accounted for 21.2% of India’s GDP in 2024.
• FTAs attract FDIs: FTA partners contributed ~30% of India's FDI equity inflows (2000 -2022).
  • FDIs are important forcheaper access to raw materials, technology, skills and capital goods.
• Leveraging Strengths in services sector: E.g. share of India's exports in Oman's services imports is only 5.31%, indicating significant untapped potential.
• Resilience against global shocks: E.g. they enhance autonomy amid US tariff.