The India-Oman Comprehensive Economic Partnership Agreement (CEPA) has opened up new opportunities for Indian companies to use Oman as a regional base for manufacturing, processing, and distribution to other markets. According to Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), the agreement could allow Indian companies to look at Oman not just as an export destination but also as a regional base for serving markets across the Gulf and East Africa.
The strategic location of Sohar Port in Oman, with its logistics connectivity and adjoining free trade zone, makes it an attractive location for Indian companies to build operations. Sahai highlighted the potential for Indian companies to send intermediate products to Oman for further processing and subsequently target markets with which Oman has preferential trade arrangements. This could enable Indian companies to take advantage of Oman's free trade agreements and export products to countries such as the US or GCC countries.
Warehousing is another area where Indian exporters could use Oman as a regional distribution base. Sahai noted that locating warehousing in Oman could help Indian exporters deal with logistics challenges and improve the efficiency of redistribution. By keeping goods closer to destination markets, exporters could secure more competitive logistics costs. This could be particularly beneficial for trade with other GCC countries and East Africa.
The India-Oman CEPA also includes provisions related to the movement of professionals, which could support Indian companies establishing operations in Oman. Sahai highlighted the increased limit for Indian companies to transfer professionals to Oman, which has been increased to 50 per cent from Oman's existing 20 per cent ceiling. This could enable Indian companies to manufacture in Oman and make their Indian professionals 50% of the total workforce.
The agreement could be particularly useful for knowledge-driven sectors seeking to establish a regional presence. Sahai noted that the provisions under the India-Oman trade agreement, combined with Oman's infrastructure and logistics connectivity, could support Indian companies in setting up operations in Oman. This could enable Indian companies to take advantage of Oman's strategic location and establish a presence in the region.
The India-Oman CEPA has the potential to boost trade between the two countries and provide new opportunities for Indian companies. Sahai emphasized the importance of the agreement in promoting trade and investment between India and Oman. The agreement could also help to strengthen economic ties between the two countries and promote cooperation in various sectors.
The FIEO is optimistic about the potential of the India-Oman CEPA to promote Indian exports. Sahai noted that the agreement could help Indian companies to increase their exports to Oman and other markets in the region. The FIEO is working to promote awareness about the agreement among Indian exporters and to provide support to companies looking to establish operations in Oman.
Key points
- The India-Oman CEPA allows Indian companies to use Oman as a regional export base, says FIEO DG Ajay Sahai
- The agreement could enable Indian companies to take advantage of Oman's free trade agreements and export products to countries such as the US or GCC countries
- The India-Oman CEPA includes provisions related to the movement of professionals, which could support Indian companies establishing operations in Oman
