India–Oman Comprehensive Economic Partnership Agreement (CEPA)

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on 1 June 2026. Even before its implementation, bilateral trade between the two countries increased from USD 8.94 billion (FY 2023–24) to USD 11.18 billion (FY 2025–26), highlighting the growing economic partnership between India and Oman.

About India–Oman CEPA

The Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive trade agreement that goes beyond tariff reduction to include trade in goods and services, investment, customs cooperation, regulatory facilitation, intellectual property rights (IPR), and professional mobility.

The India–Oman CEPA is part of India's broader strategy to strengthen economic integration with key global partners and diversify its export markets. Oman occupies a strategically important position at the crossroads of the Gulf, the Indian Ocean, and East Africa, making the agreement significant not only for bilateral trade but also for India's long-term geopolitical and economic interests.

Before the CEPA, only 15.33% of India's exports enjoyed duty-free access under the Most Favoured Nation (MFN) regime. With the implementation of the agreement, Oman now provides duty-free access to 98.08% of its tariff lines, covering approximately 99.38% of India's exports by value, significantly improving the competitiveness of Indian products.

Major Benefits for India's Merchandise Exports

The CEPA substantially enhances India's export opportunities across several important sectors.

The textiles and apparel industry stands to benefit significantly. India already accounts for nearly 43% of Oman's woven apparel imports and around 31% of knitted apparel imports. The removal of the existing 5% import duty further strengthens India's competitive position, particularly against other major suppliers such as China.

The chemical sector also gains considerable advantages. India supplies nearly 39% of Oman's inorganic chemical imports, and duty-free market access is expected to further expand India's presence in this segment.

The agreement creates enormous opportunities for engineering goods, one of India's fastest-growing export sectors. Oman imports more than USD 3.7 billion worth of mechanical machinery and USD 3.3 billion worth of automobiles annually. India's current market share remains relatively low, providing significant scope for expansion through preferential market access under the CEPA.

The pharmaceutical sector receives an important boost through simplified regulatory procedures. Although tariff reductions are limited, medicines approved by internationally recognized regulatory authorities will receive fast-track approvals, reducing compliance costs and accelerating market entry into Oman.

The agreement also provides duty-free access for several food and agricultural products, including meat, eggs, honey, butter, and processed food products. At the same time, sensitive sectors such as dairy products, cereals, edible oils, and certain agricultural commodities remain protected to safeguard domestic producers.

Trade Facilitation and Ease of Doing Business

Beyond tariff concessions, the CEPA focuses extensively on reducing non-tariff barriers and improving trade efficiency.

Oman will now recognize certificates issued by India's Export Inspection Council (EIC), eliminating repetitive product testing and reducing transaction costs for exporters.

The agreement also recognizes India's National Programme for Organic Production (NPOP) certification and Indian Halal Certification systems, making it easier for Indian agricultural and food products to access Omani markets.

Dedicated provisions relating to Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT) enhance regulatory transparency and reduce unnecessary trade restrictions.

Additionally, the introduction of fast-track customs clearance for perishable goods will significantly reduce delays and logistics costs for exporters.

Boost to Services and Professional Mobility

The India–Oman CEPA represents a major breakthrough in the services sector.

Although bilateral services trade stood at around USD 863 million in 2024, India's share in Oman's total services imports remains only about 5%, indicating considerable untapped potential.

Under the agreement, Oman has made binding commitments for Indian professionals in sectors such as information technology, engineering, healthcare, education, accounting, consulting, and financial services.

The CEPA also increases quotas for Intra-Corporate Transferees (ICTs), allowing greater mobility of Indian professionals working with multinational companies.

Furthermore, the agreement recognizes opportunities for AYUSH systems of medicine and traditional wellness services, opening new avenues in the rapidly growing Gulf healthcare and wellness market.

Strategic Importance of Oman for India

The significance of the CEPA extends far beyond bilateral trade.

Oman's strategic geographical location makes it a vital gateway connecting the Gulf Cooperation Council (GCC) region, the Indian Ocean, and the East African coast. Ports such as Sohar, Duqm, and Salalah are emerging as major international logistics, industrial, and maritime hubs.

The agreement enables Indian businesses to use Oman as a regional export and investment hub, facilitating easier access to larger markets across the Gulf and East Africa.

The benefits of the CEPA are expected to extend across India's industrial ecosystem, including textile clusters in Tamil Nadu, engineering industries in Maharashtra and Punjab, pharmaceutical manufacturers in Telangana, gems and jewellery industries in Gujarat, and seafood exporters in Andhra Pradesh and Kerala.

Significance for India

The India–Oman CEPA strengthens India's strategy of diversifying export markets while reducing dependence on traditional trading partners. It supports the objectives of Atmanirbhar Bharat, Make in India, and Act West Policy by enhancing India's participation in global value chains and improving market access for Indian products and services.

The agreement also reinforces India's maritime and strategic presence in the Indian Ocean Region while strengthening economic resilience through diversified trade partnerships.

Conclusion

The India–Oman Comprehensive Economic Partnership Agreement represents a significant milestone in India's expanding trade architecture. It transforms centuries-old maritime and commercial ties into a modern economic partnership covering trade, investment, services, logistics, and strategic cooperation. By combining preferential market access with regulatory facilitation and enhanced professional mobility, the CEPA has the potential to make Oman not only an important trading partner but also a strategic gateway for India's engagement with the Gulf, Africa, and the wider Indian Ocean region.