India Oman West Asia Strategy: Strategic Impact of Trade Deal

India–Oman CEPA: Strategic Importance and Limitations

I. Strategic Importance

  1. Diversifies India’s export markets amid rising protectionism in the US and Europe.
  2. Strengthens India’s economic engagement with West Asia through bilateral trade diplomacy.
  3. Builds on the India–UAE CEPA, signalling sustained Gulf outreach.
  4. Leverages Oman’s role as a gateway to West Asia and Africa.
  5. Enhances competitiveness of Indian exports through predictable market access.
  6. Advances India’s services-led trade strategy.
  7. Improves mobility of Indian professionals, aligning with India’s labour advantage.
  8. Expands India–Oman ties beyond hydrocarbons to a comprehensive economic partnership.

II. Limitations

  1. Oman’s small and less diversified economy limits the scale of gains.
  2. Trade benefits are not automatic and depend on quality upgradation and competitiveness.
  3. Export gains may remain sector-specific rather than economy-wide.
  4. Absence of an India–GCC FTA restricts broader regional spillover.
  5. Strategic impact is likely to be gradual rather than immediate.
India Oman West Asia strategy
India Oman West Asia strategy
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