India Import-Export Weekly Roundup: December 30, 2025
This week: India-Bahrain CEPA talks framework exchanged, GCC FTA terms progress, Oman CEPA signed with major duty cuts, and compliance shifts for exporters.
India’s trade diplomacy in West Asia accelerated this week, with multiple negotiation tracks moving from intent to process. For exporters and importers, the near-term impact is clearer market access planning, product prioritisation, and compliance preparation for upcoming pact negotiations.
1. India-Bahrain CEPA talks move closer with negotiation scope shared
India and Bahrain have exchanged draft “terms of reference” that define what a Comprehensive Economic Partnership Agreement will cover and how talks will be run. For Indian SMEs targeting the Gulf, this is an early signal to map priority HS codes, build partner pipelines, and prepare for future tariff and rules-of-origin changes.
- Draft Terms of Reference (ToR) were exchanged to start India–Bahrain CEPA negotiations (update dated December 29, 2025).
- Businesses should shortlist Bahrain-bound SKUs where duty cuts would materially improve landed price competitiveness.
- Export teams should begin documenting origin and value-add data now to reduce future rules-of-origin compliance friction.
2. India-Bahrain joint working group planned to fast-track trade issues
The commerce ministry has indicated that an India–Bahrain Joint Working Group on Trade and Investment is being set up, with India’s side proposed at joint secretary level. This matters because such groups often become the “problem-solving lane” for market access bottlenecks, standards issues, and investment facilitation cases affecting shipments.
- The India–Bahrain Joint Working Group (JWG) is under process; India has shared its proposed composition at joint secretary level.
- Exporters facing Bahrain-specific customs queries or certification barriers should prepare a dossier of recurring issues to route via industry bodies.
- Importers sourcing from Bahrain should watch for early alignment on standards and documentation that can reduce clearance time.
3. India–GCC FTA framework revives; Qatar terms nearly settled
India’s broader free trade discussions with the Gulf Cooperation Council are continuing to finalise the negotiation framework, with the Qatar-related terms reported as largely agreed. For companies with multi-country Gulf distribution, this is a cue to model corridor-wide tariff scenarios and plan warehousing and re-export structures that fit origin rules.
- India–GCC FTA talks originally started under a 2004 framework, had rounds in 2006 and 2008, paused in 2011, and restarted after a November 2022 visit by the GCC Secretary General.
- A revised GCC ToR was shared in October 2023; updated versions have been exchanged since then and talks to close the ToR are still ongoing.
- Terms connected with Qatar are described as “substantially finalised,” making it a near-term market to prioritise for readiness exercises.
4. India–Oman CEPA signed, unlocking duty-free access for most exports
India and Oman have signed a CEPA designed to expand preferential access for Indian goods in Oman, with wide coverage across product categories. For exporters of textiles, agriculture-linked products, and leather, the opportunity is to renegotiate buyer contracts and price lists based on anticipated duty savings and improved predictability.
- India and Oman signed a CEPA on December 18, 2025.
- The agreement provides duty-free access to about 98% of India’s exports to Oman, including textiles, farm goods, and leather products.
- Policy expectations point to an additional export lift of roughly $2 billion over the next 2–3 years; firms should plan capacity and buyer onboarding accordingly.
5. Tariff shock raises urgency to diversify West Asia routes and buyers
With Indian goods facing sharply higher US tariffs, exporters are under pressure to rebalance revenue concentration and expand in alternative regions. West Asia can function as both a consumption market and a transit platform into Africa and Europe, so firms should reassess distributor strategy, payment terms, and compliance for re-exports.
- Indian exporters are being hit by US tariffs reported at 50%, increasing the need for non-US demand and route diversification.
- West Asia is positioned as a gateway for onward trade into Africa and Europe, strengthening the case for regional warehousing and multi-market distribution models.
- Under the India–Oman CEPA, Oman is expected to relax operating norms for Indian companies, including allowing up to 50% of total staff from the India office—relevant for firms setting up local entities.
Next week, watch for timelines on ToR finalisation, early negotiation schedules, and sector-specific signals on which HS chapters are likely to receive priority treatment.
Source: Economic Times