India and Oman have entered a new phase of economic cooperation with the Comprehensive Economic Partnership Agreement (CEPA) officially coming into force on June 1, 2026. The landmark agreement is expected to significantly boost bilateral trade, strengthen investment flows, and create new opportunities for businesses, professionals, farmers, and exporters in both countries.
The India-Oman CEPA was signed on December 18, 2025, in Muscat in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said. Following the completion of all required domestic procedures, the agreement has now become operational. The launch was marked by the flagging off of the first export consignments benefiting from preferential tariff treatment, including agricultural products and gems and jewellery shipments from Mumbai, Kolkata, and Chennai.
Oman is currently India’s second-largest trading partner in the Gulf region. Bilateral trade between the two countries reached USD 11.18 billion during FY 2025-26, up from USD 10.61 billion in the previous fiscal year. The agreement is expected to accelerate this growth by providing improved market access and reducing trade barriers.
One of the most significant features of the CEPA is the extensive duty-free access granted to Indian exports. Under the agreement, 99.38 percent of India’s exports by value will receive duty-free treatment in Oman, covering more than 98 percent of Oman’s tariff lines. This represents a major improvement compared to the earlier Most Favoured Nation (MFN) regime, under which only a small portion of Indian exports entered Oman duty-free.
Union Commerce and Industry Minister Piyush Goyal described the agreement as a major milestone in India’s economic engagement with the Gulf region. He stated that the CEPA aligns with Prime Minister Modi’s vision of creating trade partnerships that generate benefits for farmers, MSMEs, entrepreneurs, women, and young professionals. According to him, the agreement will strengthen India’s integration into regional and global value chains while supporting employment generation and investment growth.
Several labour-intensive sectors are expected to benefit from the agreement. These include gems and jewellery, textiles, leather products, footwear, marine products, engineering goods, processed foods, and pharmaceuticals. Indian exporters will now enjoy enhanced competitiveness in Oman’s import market, estimated at nearly USD 28 billion annually.
The marine products sector is among the major beneficiaries, with all seafood exports, including shrimp and fish, receiving immediate duty-free access. Likewise, duties on gems and jewellery have been eliminated, creating significant opportunities for exporters from key manufacturing hubs such as Surat, Jaipur, Mumbai, Kolkata, and Chennai.
Agriculture and food processing sectors are also expected to gain substantially. India already holds a strong position in Oman’s agricultural import market, and the removal of tariffs on products such as basmati rice, honey, cashews, sweet biscuits, butter, and fresh produce is expected to further increase exports. Farmers and agri-exporters from states including Uttar Pradesh, Punjab, Haryana, Maharashtra, Gujarat, Andhra Pradesh, and Tamil Nadu stand to benefit from expanded market access.
The pharmaceutical industry has secured important regulatory advantages under the agreement. Medicines and pharmaceutical ingredients will receive zero-duty access, while products approved by leading international regulators will enjoy faster marketing authorisation procedures in Oman. These measures are expected to enhance the competitiveness of Indian pharmaceutical companies in the Gulf market.
Beyond goods trade, the CEPA includes one of the most comprehensive services packages offered by a Gulf Cooperation Council (GCC) country to India. Oman has opened access across 127 service sub-sectors, including information technology, healthcare, education, engineering, finance, tourism, and professional services. Enhanced mobility provisions will allow Indian professionals to work and conduct business in Oman under clearly defined categories and timelines.
The agreement also focuses on trade facilitation, regulatory cooperation, and investment promotion. Recognition of Indian certification systems, streamlined customs procedures, and mechanisms to reduce non-tariff barriers are expected to lower compliance costs and improve ease of doing business.
As India pursues its vision of becoming a globally integrated economy under Viksit Bharat 2047, the India-Oman CEPA is expected to serve as a strategic platform for expanding trade, strengthening supply chains, and deepening economic ties across the Gulf and East African regions.
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
