Will the India-Oman CEPA Enhance Trade in Green Energy and Agri-Startups?
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Synopsis
The India-Oman CEPA is poised to reshape bilateral trade, particularly in green energy and agri-innovation sectors. Industry leaders emphasize that this agreement not only strengthens economic ties but also enhances job creation and competitiveness in emerging markets. With significant investments already flowing into Oman, the CEPA is a pivotal move for India's future.
Key Takeaways
- CEPA enhances trade and investment
- Focus on green energy and agri-innovation
- Near-total duty-free access for Indian exports
- Strengthens India-Oman economic ties
- Job creation and competitiveness improvements
New Delhi, Dec 18 (NationPress) The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is set to act as a significant catalyst for bilateral trade and investment in various fields, notably green energy and agri-innovation startups, according to industry leaders on Thursday.
Chandrajit Banerjee, Director General of the CII, expressed his support for the India–Oman CEPA, identifying it as a vital move in reinforcing India’s economic ties with a crucial Gulf partner.
He noted that the agreement showcases India’s forward-thinking trade approach and enhances high-quality, mutually advantageous partnerships that foster export growth, development through investment, and reliable economic collaboration.
For Indian industries, the CEPA with Oman provides improved market access and trade facilitation while establishing a supportive framework for services, investment, technology partnerships, and professional mobility.
The anticipated growth in sectors such as green energy and agri-innovation startups will play a crucial role in enhancing competitiveness, creating jobs, and fostering long-term economic cooperation, he added.
Anish Shah, Group CEO and MD of Mahindra Group, highlighted that Oman is already India’s third-largest export market in the GCC, with a bilateral trade volume of $10.6 billion anticipated for 2024-25.
The CEPA aims to deepen this bilateral relationship by providing near-total duty-free access for Indian exports and stimulating increased trade and investment across various sectors including energy, minerals, technology, tourism, and agriculture.
Tech Mahindra’s technology development center in Muscat is already aiding key sectors through advancements in AI, cloud, and 5G, employing over 300 individuals. Shah noted that the CEPA is expected to expand cooperation in areas like digital transformation, clean energy, supply chains, and mobility.
Prime Minister Narendra Modi referred to the CEPA as a “blueprint for our shared future,” while Indian investments in Oman have surged more than threefold since 2020, reaching $5 billion across sectors such as green steel, green ammonia, aluminum manufacturing, and logistics.
India has been proactive in signing numerous FTAs in recent years, yielding positive outcomes for farmers, traders, and exporters. The CETA with the UK this year is expected to lower tariffs on over 90 percent of traded goods and significantly boost bilateral trade.
Point of View
The India-Oman CEPA is a significant advancement in trade relations, reflecting India's strategic outreach towards Gulf nations. It addresses the need for modern economic collaboration while ensuring that both countries benefit from mutual growth in emerging sectors.
NationPress
19/12/2025
Frequently Asked Questions
What sectors will benefit from the India-Oman CEPA?
The CEPA will primarily benefit sectors like green energy, agri-innovation startups, technology, and tourism.
How will the CEPA affect Indian exports to Oman?
The CEPA aims to provide near-total duty-free access for Indian goods, enhancing export opportunities significantly.
What is the expected trade volume between India and Oman?
The bilateral trade is expected to reach $10.6 billion for the fiscal year 2024-25.
How has Indian investment in Oman changed recently?
Indian investments in Oman have tripled since 2020, totaling around $5 billion across various sectors.
What is the significance of the CEPA for job creation?
The CEPA is anticipated to boost competitiveness and create jobs by fostering growth in key emerging areas.
