New Delhi: India and Oman have ushered in a new era of economic cooperation with the implementation of the Comprehensive Economic Partnership Agreement (CEPA), a landmark trade pact that came into force on June 1, 2026. The agreement is expected to significantly boost bilateral trade, strengthen investment flows, create employment opportunities, and deepen economic integration between the two nations.
The CEPA was originally signed in Muscat on December 18, 2025, in the presence of Indian Prime Minister Narendra Modi and Haitham bin Tarik Al Said. Following the completion of domestic procedures on both sides, the agreement has now officially become operational.
The launch ceremony was attended by Union Commerce and Industry Minister Piyush Goyal and Oman’s Ambassador to India, Issa Saleh Al Shibani. To mark the occasion, the first consignments benefiting from preferential tariffs—including agricultural products and gems and jewellery exports from Mumbai, Kolkata, and Chennai—were flagged off.
A Strategic Trade Gateway to the Gulf and Beyond
Oman is India’s second-largest trading partner in the Gulf region and serves as a crucial gateway to the Gulf Cooperation Council (GCC) and East African markets through its world-class logistics infrastructure. Bilateral trade between the two countries reached approximately USD 11.18 billion in FY 2025-26, up from USD 10.61 billion in the previous fiscal year.
The agreement provides duty-free access for 99.38 percent of India’s exports to Oman, covering more than 98 percent of Oman’s tariff lines. This is one of the most comprehensive market access arrangements secured by India in the Gulf region.
Officials believe the pact will provide Indian exporters with a major competitive advantage in Oman’s import market while helping Indian businesses expand their regional footprint.
Major Boost for Labour-Intensive Sectors
Several key sectors are expected to benefit from immediate tariff elimination, including agriculture, marine products, textiles, footwear, engineering goods, automobiles, pharmaceuticals, and gems and jewellery.
Indian exporters of shrimp, fish, and seafood products will now enjoy duty-free access to Oman, improving competitiveness and creating new opportunities for coastal states such as Andhra Pradesh, Kerala, Tamil Nadu, and Gujarat.
The gems and jewellery industry is also poised for rapid growth. With import duties of up to 5 percent eliminated, exporters from major manufacturing hubs such as Surat, Jaipur, Mumbai, Kolkata, and Chennai are expected to gain a stronger foothold in the Omani market.
Agricultural exports—including rice, cashews, honey, onions, potatoes, butter, meat products, eggs, and processed foods—are likely to witness substantial expansion. Indian mango varieties such as Alphonso, Kesar, and Dasheri are also expected to benefit from enhanced market access.
Breakthrough for Pharmaceuticals and Manufacturing
One of the most significant features of the CEPA is the facilitation of pharmaceutical exports. Medicines approved by major international regulators, including the USFDA, EMA, UK MHRA, and TGA, will be eligible for fast-track marketing authorization in Oman within 90 days.
This provision is expected to reduce regulatory delays and strengthen India’s position as a trusted supplier of affordable medicines and healthcare products.
Engineering goods, electronics, machinery, automobiles, iron and steel products will also receive zero-duty market access, creating fresh opportunities for Indian manufacturers and exporters operating under various production-linked incentive schemes.
Strong Opportunities for Indian Professionals
Beyond goods trade, the CEPA offers one of the most ambitious services packages ever extended by a Gulf nation to India.
Oman has opened access across 127 services sub-sectors, covering information technology, healthcare, engineering, education, financial services, telecommunications, construction, tourism, and professional services.
The agreement also improves mobility for Indian professionals. Business visitors 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.
Importantly, Oman has increased the ceiling for Information and Communication Technology (ICT) professionals from 20 percent to 50 percent, creating greater opportunities for Indian talent in the Gulf.
Protection for Farmers and Sensitive Sectors
While expanding trade opportunities, India has safeguarded sensitive domestic sectors by excluding products such as dairy, cereals, edible oils, oilseeds, fruits, vegetables, spices, rubber, and certain agricultural commodities from tariff concessions.
The agreement also incorporates tariff-rate quotas and minimum import price mechanisms to protect domestic industries and farmers from unfair competition.
Strengthening the Vision of Viksit Bharat 2047
Speaking on the occasion, Commerce Minister Piyush Goyal described the CEPA as a transformative agreement that aligns with Prime Minister Narendra Modi’s vision of creating new opportunities for farmers, fishermen, youth, women entrepreneurs, startups, and MSMEs.
Commerce Secretary Rajesh Agrawal said the pact goes beyond tariff reduction by fostering stronger integration across trade, services, logistics, investment, and regulatory cooperation.
With enhanced market access, improved trade facilitation, streamlined customs procedures, and stronger investment frameworks, the India–Oman CEPA is expected to become a powerful engine for economic growth. The agreement creates a strategic economic corridor linking South Asia, the Gulf region, and East Africa, further reinforcing India’s role in global supply chains and advancing the nation’s long-term vision of becoming a developed economy by 2047.
