India-Oman Trade Pact Comes Into Force, Boosting Exports

One of the biggest gains under the CEPA is the granting of duty-free access to 99.38% of India's exports to Oman by value, covering 98.08% of Oman's tariff lines.

A new chapter in India-Oman economic relations began on June 1, 2026, as the India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially entered into force, paving the way for expanded trade, investment, services, and economic cooperation between the two countries.

The landmark agreement, signed in Muscat in December 2025 in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said of Oman, is expected to significantly strengthen India's presence in the Gulf region while creating new opportunities for exporters, businesses, professionals and investors.

Duty-Free Access for Nearly All Indian Exports

One of the biggest gains under the CEPA is the granting of duty-free access to 99.38% of India's exports to Oman by value, covering 98.08% of Oman's tariff lines.

The agreement provides immediate tariff benefits, giving Indian exporters a competitive advantage in Oman's nearly USD 28 billion import market. Previously, only 15.33% of Indian exports entered Oman duty-free under the Most Favoured Nation (MFN) regime.

The move is expected to boost labour-intensive sectors such as gems and jewellery, textiles, leather products, footwear, pharmaceuticals, engineering goods, processed foods and marine products, while strengthening India's integration into regional and global supply chains.

Major Opportunities for Agriculture and Manufacturing

The agreement is expected to deliver substantial benefits to Indian farmers, food processors and manufacturers.

Agricultural products such as honey, cashews, condiments, basmati rice, butter and sweet biscuits will gain enhanced market access. India already holds a strong position in Oman's agricultural import market and is expected to further increase exports of rice, fruits, meat products and eggs.

In the gems and jewellery sector, import duties of up to 5% have been eliminated, giving Indian exporters a pricing advantage over competitors from several countries. Industry estimates suggest exports in this segment could increase six-fold within the next three years.

Engineering products, machinery, automobiles, electrical equipment, steel and electronics will also receive full duty-free market access, creating fresh opportunities for Indian manufacturers and companies operating under production-linked incentive schemes.

Services Sector and Professionals Gain New Access

The CEPA includes one of the most comprehensive services packages ever offered by a Gulf Cooperation Council (GCC) country to India.

Oman has opened access across 127 services sub-sectors, including information technology, healthcare, engineering, education, finance, construction, telecommunications, tourism and professional services.

The agreement also introduces legally binding mobility provisions for Indian professionals. Business visitors will be allowed to stay in Oman for up to 90 days, independent professionals for up to 180 days, and intra-corporate transferees for up to four years.

Officials believe these measures will benefit thousands of India-Oman joint ventures and create new opportunities for Indian skilled workers, entrepreneurs and service providers.

Strategic Partnership Expected to Drive Future Growth

Speaking at the launch of the agreement, Commerce and Industry Minister Piyush Goyal described the CEPA as a defining milestone that aligns with India's vision of creating opportunities for farmers, youth, women, entrepreneurs and MSMEs.

The agreement also includes provisions aimed at reducing non-tariff barriers, simplifying customs procedures, recognising Indian certification systems and improving regulatory cooperation.

With bilateral trade already reaching USD 11.18 billion in the 2025-26 financial year, both countries expect the CEPA to drive further growth in trade, investment and economic cooperation in the years ahead.

The agreement is widely viewed as a strategic step in India's efforts to deepen engagement with the Gulf region, strengthen supply chains and advance its vision of becoming a globally integrated and competitive economy under the Viksit Bharat 2047 initiative.