INDIA-OMAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT CEPA

Written by Michael Thervil

INDIA-OMAN COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT CEPA | PHOTO FROM INDIAN PRIME MINISTER NARENDRA MODI'S X ACCOUNT

[India Oman Comprehensive Economic Partnership Agreement CEPA] Last year countries India and Oman agreed and signed the CEPA also known as The Comprehensive Economic Partnership Agreement (CEPA) in December of last year as Indian Prime Minister Narendra Modi visited Muscat, this year that same India-Oman trade pact that trade pack has been ratified. The new economic trade pact between both nations was not only signed as way for both nations to diversify their ability to engage in trade as opposed to relying solely on one trading partner, but it will allow and enhance the ability of farmer, the importation and exportation of goods, products,  and services, as well as fishermen, investors, student and micros, small and medium sized business from both countries to take full advantage of all the opportunities that will come about from this trade deal.

For both India and Oman, this deal comes at a critical time as the joint Israeli and American war of aggression and choice causes incomprehensible and unpredictable rifts within the region and has permanently changed both the geopolitical, oil and gas, and the socio-economic sectors of every country in the world. While Iran has successfully been able to close off the Strait of Hormuz from the American’s and other western aligned nations which directly affects the flow of 20% of the world’s oil and gas, the Arab country of Oman is still able to continue its flow of gas and oil from its coastlines (Arabian Sea and Gulf of Oman) which lies just outside the Iranian’s coastline lines.

Some of the biggest benefits from CEPA is that Oman has spared India from having to pay traffic on exported goods, products, and services to the tune of nearly zero percent. This near elimination not only provides the hidden hand of the market to nearly take over, but it allows Indian manufactures from all sectors to sell more goods, services, and products thus significantly boosting the Indian economy. Oman benefits from the deal as India has agreed to eliminate nearly 80% of tariffs Oman would have to pay when it exports goods, products, and services to India. Also, under CEPA, Indian businesses no matter the size and scale will have the ability to hold 100% foreign direct investments in major Oman based service sectors to include 127 sub-sectors. For women, the bulk of savings and production increases will be seen in their supply of methanol, feedstocks, LNG (liquified natural gas), crude oil, fertilizers, and other industrial raw materials. This will also put more money into the energy sector in Oman and significantly boost Oman's image as a major oil, gas, and energy supplier on the world stage.

Another key benefit for both nations would be the creation and implantation of a nearly $5 billion-dollar undersea gas pipeline which will connect both countries again exponentially, expanding the energy sectors of both countries. These 3,450 meters (2,143 miles) deep and 2,000 km (1,242 miles) long undersea natural gas pipelines will have the ability to deliver an estimated 31 million cubic meters per day saving India $1 billion annually. Both countries are predicted to financially excel as this trade-pact continues into future decades.