Editor’s Note
This article highlights a significant development in regional trade diplomacy. The newly signed India-Oman Comprehensive Economic Partnership Agreement (CEPA) marks a historic step, poised to boost key exports and deepen bilateral economic ties. We examine its potential impact on trade flows and commercial opportunities.
India and Oman have strengthened their economic relations by signing the India-Oman Comprehensive Economic Partnership Agreement (CEPA). This historic trade deal is set to significantly boost India’s gem and jewellery exports to Oman by eliminating customs duties on these products. The agreement is expected to bring a notable increase in bilateral trade, strengthen direct commercial ties between the two nations, and provide significant opportunities for Indian businesses.
A key point of the India-Oman CEPA’s impact on the gem and jewellery sector is the elimination of customs duties on gems and jewellery imported into Oman from India. Currently, India’s gem and jewellery exports to Oman stand at approximately $35 million as of 2024. However, the Gem & Jewellery Export Promotion Council (GJEPC) estimates that this figure could reach $150 million within the next three years due to improved price competitiveness gained from duty-free access.
Industry leaders expect the CEPA to boost existing export volumes as well as foster deeper industry collaboration.
He highlighted that zero-duty access will make Indian exporters significantly more competitive and encourage direct sourcing from India.
The GJEPC sees strong growth potential across various segments of the gem and jewellery sector. Strong demand is expected for polished diamonds and gold jewellery, categories where India already holds a significant position. Additionally, there is emerging demand for silver, platinum, and imitation jewellery, indicating a diverse market opportunity for Indian manufacturers and exporters.
India is already Oman’s largest supplier of gold jewellery. This includes exports of intricate 22-carat wedding and traditional designs, which are highly appreciated in Oman. Exports in this specific segment have recorded a remarkable 80 percent growth in 2024-25, underscoring deep trust and appreciation for Indian craftsmanship and quality in the Omani market.
The financial implications of the CEPA are significant. The estimated five-fold increase in exports from $35 million to $150 million within three years represents a major economic uplift for the Indian gem and jewellery industry. This could translate into increased revenue for participating companies, more employment opportunities, and a stronger contribution to India’s overall export earnings. The future outlook is optimistic, with businesses having the potential for further expansion by leveraging the new trade framework.
This trade agreement is expected to have a positive and direct impact on Indian companies operating in the gem and jewellery export sector. It enhances their global competitiveness and opens a significant growth pathway in the Omani market. For investors in these companies, it signals the potential for increased revenue and profits.