India excludes sensitive products like dairy and precious metals from Oman trade pact

The Hindu
The Hindu
22h ago
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India's Oman trade pact excludes sensitive products like dairy and precious metals to protect domestic sectors, with tariff-rate quotas applied selectively.
India excludes sensitive products like dairy and precious metals from Oman trade pact
A What happened
India and Oman signed a trade pact (CEPA) on December 18, 2025, excluding sensitive Indian products such as dairy, gold, silver, footwear, and sports goods from duty concessions to protect domestic farmers and MSMEs. The pact includes tariff-rate quotas for products of export interest to Oman, including dates, marble, and petrochemicals, allowing limited duty liberalization. Oman allowed Indian firms to import marble blocks, which had been a banned export. This balancing act safeguards Indian domestic interests while opening selective trade channels.

Key insights

  • 1

    Selective exclusions reflect protection of vulnerable domestic sectors: India's choice to exclude dairy, gold, silver, footwear, and labour-intensive products signals prioritization of domestic agriculture and small industries over broad trade liberalization.

  • 2

    Tariff-rate quotas introduce calibrated trade openness: Applying TRQs for sensitive products like dates and marble allows India to open trade without undermining domestic producers, showing a strategic balance between liberalization and protection.

  • 3

    Oman's concessions enable limited export growth for India: Allowing marble block imports from India, despite prior bans, indicates Oman’s willingness to accommodate Indian exports within the pact’s framework, fostering bilateral trade within controlled limits.

Takeaways

The India-Oman CEPA balances opening trade routes with protecting sensitive Indian sectors, reflecting a cautious approach to trade liberalization amid economic and strategic priorities.

Topics

Business & Markets Economy World & Politics Policy & Regulation Trade & Tariffs