CEPA to boost Indian meat, dairy exports with greater access to Oman's $6 billion agri market

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.

India’s trade deal with Oman grants duty-free access to 99 percent of the Gulf nation's agricultural imports, estimated at $6 billion in calendar year 2024, potentially boosting Indian agriculture and processed food exports such as meat, dairy products, bakery and confectionery items, as well as processed fruits and vegetables.

Key Gains (products with duty-free or tariff benefits)

• Meat & Dairy: Boneless meat of bovine animals, Butter

• Bakery & Sweets: Bakery items, Sweet biscuits, Chocolate and other preparations containing cocoa, Sugar confectionery not containing cocoa

• Fruits & Vegetables: Potatoes, preserved

• Others: Natural honey, Cashew kernels, Malt extract

The agreement brings Indian products at par with major agricultural exporters and Oman’s FTA partners such as the United States, Singapore, and the European Free Trade Association (EFTA) countries.

The deal removes Oman’s 5 percent tariff on Indian bakery products such as sweet biscuits, bread, pastries, cakes, and wafers, and also grants duty-free access to natural honey.

On the other hand, India has granted phased tariff concessions for products such as sweet biscuits, rusks, toasted bread, pastries and cakes, papad, and dog and cat food, with duties to be eliminated over a period of five to ten years.

At the same time, India has excluded sensitive products from the FTA, including dairy, cereals, fruits, vegetables, edible oils, oilseeds, and natural honey, to protect domestic farmers.

Excluded Products

• Dairy Sector: Milk, Cheese, Butter, Dairy spreads, Ghee, Yogurts, Cheese

• Cereals: Wheat, Rice, Maize, Millets

• Fruits: Cashews, Banana, Apples, Pineapples, Orange, Mango, Grapes, Pomegranates

• Vegetables: Tomato, Onions, Garlic, Cauliflower, Cabbage, Lettuce, Radish, Peas, Beans, Pumpkin, Bitter gourd, Bottle gourd, Lady finger, Potatoes, Mixtures of vegetables

• Edible Oils: Soybean oil, Palm oil, Mustard oil, Groundnut oil, Rapeseed oil, Sunflower oil

• Oil Seeds: Soybean, Mustard, Sesame

India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, the second day of Prime Minister Narendra Modi's visit to the Gulf country, giving most Indian exports, including textiles, duty-free access.

As part of the trade deal, India will cut duties on about 78 percent of its tariff lines, covering nearly 95 percent of imports from Oman, with sensitive products given access mainly through tariff-rate quotas.

On the other hand, the trade deal gives India zero-duty access on 98.08 percent of Oman’s tariff lines, covering 99.38 percent of Indian exports by value.

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.