Diamond manufacturers in India are hoping the abolition of import duties on gems and jewelry sold to Oman will boost their exports to the country.
Both countries signed an agreement earlier this week – the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which covers a whole range of goods, from textiles, to pharmaceuticals, in addition to gems and jewelry. It is likely to be implemented from March 2026.
Oman is a neighbor of UAE with a five million population and an oil-based economy.
India’s gem and jewelry exports to Oman could, as a result of the agreement, increase more than fourfold, from $35m to $150m annually over the next three years, according to the Gems and Jewellery Export Promotion Council (GJEPC).
Oman currently applies a standard 5 per cent customs duty on most imported goods, including gems and jewelry from India.
Zero duty has clear benefits for India, making its goods cheaper and expanding its footprint in the Gulf.
Oman benefits through preferential access to India’s 1.4bn consumer market forts exports like petrochemicals, aluminum, fertilizers, fish and other exports.