In a significant diplomatic and economic achievement, the Indian government has secured major concessions for its workforce seeking opportunities in Oman. The Gulf nation has agreed to substantially increase the permissible limit for hiring Indian nationals in companies operating within its borders.
A Major Leap in Employment Quotas
The most notable outcome is the revision of the employment cap. Oman will now allow companies to employ up to 50% Indians in their workforce, a substantial increase from the previous limit of 20%. This provision is firmly embedded within the Comprehensive Economic Partnership Agreement (CEPA) between the two nations. The agreement includes a "standstill" clause, ensuring that this 50% threshold cannot be reduced in the future.
Furthermore, the pact guarantees a "most-favoured nation" style benefit for India concerning other South Asian countries. If Oman offers any similar concession to a nation from the SAARC bloc in the future, the same advantage will be automatically extended to India. This move is strategically designed to ensure that Indian companies establishing operations in Oman primarily hire from India, rather than turning to labour sources from countries like Bangladesh or Pakistan.
Enhanced Visa Facilitation for Professionals
Beyond the overall quota, the agreement significantly eases the movement of Indian professionals and service suppliers. The commerce department highlighted that the quota for Intra-Corporate Transferees (ICTs) has been increased. Professionals falling under this category, as well as contractual service suppliers, will now be eligible for visas valid for up to four years.
The benefits extend to other categories as well. Independent professionals can now obtain visas for a duration of up to 180 days, while business visitors will be granted visas for up to 90 days. These measures are expected to provide greater stability and opportunities for Indian skilled workers in the Omani market.
Impact on Trade and Remittances
This development is particularly crucial given the deep existing ties. Approximately seven lakh (700,000) Indian nationals currently work in Oman, forming a substantial part of the expatriate community. These workers annually remit over $2 billion back to their families in India, contributing significantly to the nation's foreign exchange inflows.
While the agreement includes conditions for the hiring of Omani nationals (localisation), officials clarified that restrictions are more focused on top-tier job categories. The broader focus of the CEPA remains on enhancing trade in goods and services, with the Gulf region being a prime area of strategic interest for Indian exports and professional expertise.
This revised framework under the India-Oman CEPA marks a pivotal step in safeguarding and expanding employment avenues for the Indian workforce abroad, while simultaneously strengthening bilateral economic relations.
