“>
India and Oman on Monday operationalised the Comprehensive Economic Partnership Agreement (CEPA), marking a major expansion of bilateral trade and investment ties between the two countries.
The India-Oman CEPA entered into force on June 1, 2026, following its signing in Muscat on December 18, 2025, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said.
The agreement was operationalised in the presence of Commerce and Industry Minister Piyush Goyal and Oman’s Ambassador to India, Issa Saleh Al Shibani.
India flagged off the first consignments availing preferential tariff benefits under the agreement, including agriculture and gems and jewellery exports from Mumbai, Kolkata and Chennai.
Oman is India’s second-largest trading partner in the Gulf region, with bilateral trade reaching $11.18 billion in FY2025-26, up from $10.61 billion in FY2024-25.
The CEPA provides duty-free access for 99.38 per cent of India’s exports to Oman by value, covering 98.08 per cent of Oman’s tariff lines.
“With 99.38 per cent of India’s exports receiving duty-free access, the agreement unlocks new opportunities for our exporters and professionals. Oman is our trusted partner, a bridge for our people and a gateway to the Gulf and East Africa,” said Piyush Goyal, Union Minister of Commerce and Industry.
According to the government, only 15.33 per cent of India’s exports to Oman previously enjoyed duty-free access under the most-favoured nation regime.
Duty-free access
The agreement covers goods, services, professional mobility, regulatory cooperation, non-tariff barrier safeguards and investment facilitation.
In gems and jewellery, Oman has removed import duties of up to 5 per cent from day one, giving Indian exporters a price advantage over competitors from countries such as Italy, Turkey, Thailand and China.
India’s gems and jewellery exports to Oman stood at $25.78 million in 2025 and are projected to rise to around $150 million within three years, according to the government.
Agriculture and processed food exports including basmati rice, cashew kernels, onions, potatoes, soybean meal, sweet biscuits, butter and frozen bovine meat are also expected to benefit from duty-free access.
The government said India currently accounts for more than 94 per cent of Oman’s bovine meat imports and over 98 per cent of fresh egg imports.
The agreement also includes regulatory provisions for pharmaceuticals, allowing products approved by regulators such as the USFDA, EMA, UK MHRA and TGA to qualify for marketing authorisation within 90 days without prior inspection in many cases.
In engineering and electronics, all products receive zero-duty market access, replacing earlier tariffs of up to 5 per cent.
India’s engineering exports to Oman reached $875.83 million in FY2025-26 and are projected to rise to between $1.3 billion and $1.6 billion by 2030.
The CEPA also includes Oman’s most comprehensive services commitments to India by any Gulf Cooperation Council country, covering 127 services sub-sectors.
These include computer services, engineering, healthcare, education, telecommunications, financial services, construction and tourism.
Mobility commitments
For the first time in a bilateral trade agreement, Oman has made binding mobility commitments for Indian professionals across sectors including accounting, engineering, medicine, information technology, education and construction.
Business visitors under the agreement can stay in Oman for up to 90 days, independent professionals for up to 180 days and intra-corporate transferees for up to four years.
The agreement also provides for future negotiations on a social security agreement aimed at avoiding dual social security contributions for Indian workers and employers operating in Oman.
India and Oman also agreed to strengthen regulatory cooperation through dedicated sanitary and phytosanitary and technical barrier to trade chapters, recognition of Indian organic and halal certification systems, and faster customs clearance timelines for perishables.
The agreement grants immediate zero-duty access for Indian exports in sectors including gems and jewellery, textiles, leather, footwear, marine products, engineering goods, processed foods and pharmaceuticals.
India, meanwhile, has offered tariff liberalisation on 77.79 per cent of tariff lines covering 94.81 per cent of imports from Oman, while excluding sensitive sectors such as dairy, cereals, edible oils, spices and key agricultural products.
The CEPA also includes tariff-rate quotas and minimum import price mechanisms for selected products aimed at protecting domestic industry and rural livelihoods.
Under the agreement, all marine products including shrimp, fish and cuttlefish will receive immediate duty-free access, replacing import duties of up to 5 per cent.
The government said the move is expected to boost exports from states including Andhra Pradesh, Kerala, Tamil Nadu and Gujarat.
“The agreement is tariff liberalisation plus: it enhances market access, facilitates service trade and provides greater predictability for businesses operating across both markets,” said Rajesh Agrawal, Commerce Secretary.
The government said the CEPA is expected to deepen investment flows, improve integration into GCC value chains and strengthen India’s long-term economic engagement with the Gulf region under the Viksit Bharat 2047 vision.
Join the community of 2M+ industry professionals.
Subscribe to Newsletter to get latest insights & analysis in your inbox.
All about ETAuto industry right on your smartphone!
- Download the ETAuto App and get the Realtime updates and Save your favourite articles.