India safeguards farmers in strategic Oman CEPA, opens new export avenues

India has safeguarded the interests of its domestic farmers and MSMEs while opening new export avenues under the Comprehensive Economic Partnership Agreement (CEPA) signed with Oman.
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Muscat: The commerce ministry said India has placed a wide range of sensitive items in the exclusion category under the India–Oman CEPA, offering no tariff concessions to protect domestic producers. These include key agricultural products such as dairy, tea, coffee, rubber and tobacco, along with chocolates, gold and silver bullion, jewellery, footwear, sports goods and scrap of several base metals.

For products that are of export interest to Oman but sensitive for India, the agreement largely follows a tariff-rate quota (TRQ) approach. Under this mechanism, duty concessions apply only up to a fixed quota, after which normal import duties will be levied. Products covered under TRQs include dates, marbles and certain petrochemical items. As per the agreement, the annual duty-free quota for dates has been fixed at 2,000 tonnes. Officials also noted that Oman has allowed Indian firms to import marble blocks, a category that is otherwise a banned export item in the Gulf nation.

Alongside these safeguards, the CEPA marks a major first for India’s traditional medicine sector. For the first time, India’s traditional medicines have been included in a trade pact, granting greater market access for Ayush products in Oman and the wider Gulf region. The agreement includes a dedicated annexe recognising trade in health-related and traditional medicine services.

According to an official statement, Oman has made a comprehensive commitment to traditional medicine across all modes of supply, a first by any country, creating significant opportunities for India’s Ayush and wellness sectors. The pact also provides for cooperation in licensing and qualification procedures, digital conduct of licensing examinations, medical value travel facilitation, capacity building, harmonisation of standards and joint research.

The Ministry of Ayush has been actively promoting Indian traditional medicine systems globally through a central sector scheme that supports manufacturers and service providers, facilitates international promotion and boosts academic and research collaboration. Reflecting this push, India’s Ayush exports rose from USD 1.09 billion in 2014 to USD 1.54 billion in 2020, a momentum the India–Oman CEPA is expected to further strengthen.

Summary

India's CEPA with Oman strategically protects domestic farmers by excluding sensitive items like dairy and tea from tariff concessions, while opening new export opportunities for traditional medicines. The agreement introduces a tariff-rate quota for certain Omani exports and marks a significant step for India's Ayush sector, enhancing market access and cooperation in the Gulf region.

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