New Delhi: India Oman CEPA entered into force on June 1, marking a major milestone in bilateral economic relations and granting duty-free access to 99.38 per cent of India’s exports to Oman. The agreement aims to expand trade, boost exports, generate employment and deepen strategic economic integration between the two countries.
The Comprehensive Economic Partnership Agreement was signed in Muscat on December 18, 2025, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said. After both countries completed their internal procedures, the pact became operational from June 1, 2026.
Union Commerce and Industry Minister Piyush Goyal and Oman’s Ambassador to India, Issa Saleh Al Shibani, marked the launch of the agreement. Officials also flagged off the first export consignments receiving preferential tariff benefits from Mumbai, Kolkata and Chennai.
Bilateral trade between India and Oman reached USD 11.18 billion in FY 2025-26, up from USD 10.61 billion in the previous financial year. Oman remains India’s second-largest trading partner in the Gulf region and serves as a gateway to GCC and East African markets.
India Oman CEPA expands market access across sectors
Under the agreement, Oman will provide duty-free access on 98.08 per cent of its tariff lines. The move is expected to benefit labour-intensive sectors such as agriculture, marine products, textiles, gems and jewellery, pharmaceuticals, engineering goods, footwear and automobiles.
The agreement also includes major trade facilitation measures. Oman will accept certificates issued by India’s Export Inspection Council, reducing compliance requirements and speeding up cargo clearances. Additionally, Indian organic and halal certification systems have received recognition.
Indian pharmaceutical companies will gain faster market access. Products approved by major international regulators such as the USFDA, EMA, UK MHRA and TGA will receive marketing authorisation within 90 days under specified conditions.
The services sector also secured significant gains. Oman has opened 127 services sub-sectors, covering information technology, engineering, healthcare, education, financial services, tourism and construction. The agreement includes enhanced mobility provisions for professionals, business visitors and intra-corporate transferees.
The Centre said sensitive sectors including dairy, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather and spices remain protected from market access commitments. Officials said the safeguards would protect farmers and domestic industries while allowing export growth in competitive sectors.
The government expects the India Oman CEPA to strengthen value chains, attract investment, improve market access and create new opportunities for exporters, professionals, startups and MSMEs. Officials said the agreement would also support India’s long-term goal of becoming a globally integrated and competitive economy under the Viksit Bharat 2047 vision.
