Iran war may delay Oman-India Cepa rollout

The Iran conflict reportedly may delay the rollout of a free trade deal between Oman and India.

The comprehensive economic partnership agreement (Cepa), signed in December last year, was scheduled to take effect on April 1.

But the war could push back the pact’s implementation, the Times of India reported, quoting unidentified government officials.

India and Oman started trade negotiations in November 2023. The Cepa is designed to enhance bilateral commerce and investment cooperation while streamlining the movement of goods and services.

The sultanate is the third-largest export market for India in the GCC. Indian exports to Oman have doubled since 2018-19, standing at nearly $4.5 billion in 2022-23.  

The UAE and India signed a Cepa in 2022, when bilateral trade stood at around $60 billion. The target is to exceed $100 billion.

Further reading:

• Oman and Saudi Arabia emerge as evacuation hubs in Iran war
• Oman says latest attacks not affecting investment projects
• Oman Air adds war risk and fuel surcharges on cargo