New Delhi, Dec 20 : The Comprehensive Economic Partnership Agreement (CEPA) with Oman is expected to enhance Indiaâ??s export competitiveness, secure energy supplies at favourable prices and strengthen Indiaâ??Oman economic ties, a report said on Saturday.

The report from Bank of Baroda said that CEPA aims to expand trade and investment, increase export opportunities for labourâ??intensive micro, small and medium enterprise (MSME) sectors such as textiles, leather, footwear, gems and jewellery and engineering products.

Further, it aims to increase service commitments in education, health, computer, business, professional and R&D services.

"This marks a significant move towards increasing access towards global markets and building on export competitiveness," the bank said.

Zero duty access on 98.08 per cent of Omanâ??s tariff lines for Indian goods is allowed, while India is offering 77.79 per cent of its total tariff lines.

Indiaâ??s exports to Oman stood at $4.1 billion in FY25, about 0.9 per cent of overall exports, and have risen at a fiveâ??year compound annual growth rate of 12.4 per cent versus 6.9 per cent for overall exports.

The agreement would help reduce Indiaâ??s oil import bill and exploration of more options in the future, it said, adding, the major sectors in focus outlined in the agreement constitute around 39 per cent of Indiaâ??s exports to Oman.

â??It is positive for Indiaâ??s overall export basket at a time when some re-routing of exports is happening to reap cost advantage against the backdrop of higher tariff rate by the US,â?? the report said.

The bank noted the zero-duty agreement covers 99.38 per cent of Indiaâ??s exports to Oman by value and would cover 94.81 per cent of Indiaâ??s imports from Oman by value. For exportâ??sensitive products, liberalisation is largely via tariffâ??rate quotas, allowing a set quantity of specific products to be imported, mainly affecting agriculture.

/IANS