New Delhi: India- Oman Comprehensive Economic Partnership Agreement (CEPA) carries strategic value beyond trade by offering mechanisms to mitigate risks tied to the Strait of Hormuz, a report has said.
Oman’s unique geographic position, stretching from the Arabian Sea to areas adjacent to the Hormuz choke point, and its port and logistics infrastructure provide India with alternative maritime access points, the report from India Narrative said.
“This also allows New Delhi to engage with a state having access points that are relatively closer to open sea routes and wider Indian Ocean connectivity,” it noted.
India can use these points to diversify supply routes and reduce reliance on a single corridor, the report said.
Oman can serve as a complementary node linking India with Gulf markets, East Africa, North Africa, and portions of Central Asia.
The CEPA also contributes toward energy security through institutionalisation rather than simple trade expansion.
India-Oman trade relationship already includes substantial cooperation in hydrocarbons, LNG, fertilizers, and petrochemicals. CEPA creates a more predictable framework for investment and supply arrangements, reducing transactional uncertainty and encouraging long-term contracts.
The CEPA immediately grants 100 per cent duty free market access in Oman to 98 per cent of tariff lines covering 99.38 per cent of India’s exports to that market, up from the pre CEPA system of zero duty access for 15.3 per cent of exports.
Sectors dominated by small businesses such as iron and steel, textiles, leather, auto components and industrial equipment could see large international orders after the agreement.
“Increased textiles exports to Oman will boost production and create jobs across major clusters such as Tirupur, Surat, Ludhiana, Panipat, Coimbatore, Karur, Moradabad, Jaipur, and Ahmedabad. Artisans and weavers across India will also gain from higher international demand for their products,” Union Commerce and Industry Minister Piyush Goyal had said.
(IANS)
