India–Oman Comprehensive Economic Partnership Agreement (CEPA): A New Milestone in Economic Cooperation

The India–Oman Comprehensive Economic Partnership Agreement (CEPA), which came into effect on 1 June 2026, marks a significant advancement in India’s economic engagement with the Gulf region. The agreement is expected to strengthen bilateral trade, enhance investment flows, and provide substantial market access for Indian goods and services in Oman.

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¨     Signed in December 2025, the agreement is one of India’s most comprehensive trade agreements in the Gulf region and is expected to significantly boost bilateral trade, which has already crossed US$ 15 billion in recent years.

¨     According to the Ministry of Commerce and Industry, the CEPA is expected to nearly double India’s exports to Oman in the coming years while strengthening India’s presence in the Gulf, East African, and West Asian markets.

¨     The agreement aligns with India’s broader strategy of strengthening economic partnerships under its Act West Policy and expanding its network of high-quality trade agreements.

Key Features of India–Oman CEPA

Transformational Market Access for Trade in Goods

¨     Oman has granted 100% duty-free access on 98.08% of its tariff lines, covering 99.38% of India’s exports by value, making it one of India’s most comprehensive trade agreements in the Gulf region.

¨     Prior to the CEPA, only about 15.33% of India’s exports entered Oman duty-free under the MFN regime. All tariff concessions under the agreement take effect immediately.

¨     Major beneficiaries include gems & jewellery, textiles, marine products, pharmaceuticals, engineering goods, processed foods, footwear, automobiles, and other labour-intensive sectors.

Calibrated Liberalisation with Protection for Sensitive Sectors

¨     India has offered tariff liberalisation on 77.79% of tariff lines, covering 94.81% of imports from Oman by value, while maintaining safeguards for sensitive sectors.

 

¨     Sensitive products such as dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices, and key agricultural commodities have been kept in the exclusion list.

¨     The agreement also incorporates Tariff Rate Quotas (TRQs) and Minimum Import Price (MIP) mechanisms for selected products to protect the domestic industry, food security, and farmer interests.

Services and Professional Mobility Commitments

¨     Oman has offered market access commitments across 127 services sub-sectors, making it the most comprehensive services offer extended by any GCC country to India.

¨     Key sectors include IT and computer services, professional services, healthcare, education, engineering, financial services, telecommunications, construction, tourism, and research & development services.

¨     For the first time in a bilateral FTA, Oman has provided binding commitments for categories of professionals such as engineers, doctors, IT professionals, teachers, accountants, and consultants.

Trade Facilitation and Regulatory Cooperation

¨     Oman will accept certificates issued by India’s Export Inspection Council (EIC), reducing duplicative testing and inspections at Omani ports.

¨     India’s NPOP organic certification and Halal certification systems have been recognised by Oman.

¨     Dedicated chapters on Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) seek to reduce non-tariff barriers, improve transparency, and strengthen regulatory cooperation.

Sector-Specific Export Opportunities

¨     All marine products, including shrimp, fish, and cuttlefish, now enjoy immediate duty-free access, benefiting major exporting states such as Andhra Pradesh, Kerala, Tamil Nadu, and Gujarat.

¨     Import duties on gems and jewellery have been eliminated, providing Indian exporters a competitive advantage over suppliers from countries such as China, Thailand, Italy, and Turkey.

Investment, MSMEs and Strategic Connectivity

¨     The CEPA establishes a structured framework for investment facilitation, enhancing regulatory certainty and improving the business environment for investors.

¨     The agreement is expected to strengthen the competitiveness of MSMEs, startups, women entrepreneurs, and service providers by integrating them into GCC value chains.

¨     Oman’s logistics hubs at Sohar, Duqm, and Salalah will provide Indian businesses improved access not only to Oman but also to wider GCC and East African markets, creating a strategic economic corridor connecting South Asia, the Gulf, and East Africa.

Significance of the Agreement

¨     Boosting India’s Export Competitiveness: Immediate duty-free access on a vast majority of tariff lines will improve the price competitiveness of Indian products in the Omani market and provide an advantage over competing exporters.

¨     Strengthening India’s Gulf Outreach: Oman occupies a strategic location at the entrance of the Persian Gulf and serves as a gateway to the wider GCC, West Asian, and East African markets. The CEPA strengthens India’s economic footprint in the region.

¨     Supporting Diversification of Oman’s Economy: The agreement complements Oman’s efforts to diversify its economy beyond hydrocarbons by promoting manufacturing, logistics, services, and investment cooperation.

¨     Deepening Strategic Partnership: Beyond trade, the CEPA reinforces India–Oman ties in areas such as logistics, connectivity, energy security, supply chains, and people-to-people exchanges.