Commerce and Industry Minister Piyush Goyal on Friday said the India–Oman Comprehensive Economic Partnership Agreement (CEPA) marks a major shift in India’s trade engagement and is expected to significantly deepen bilateral ties between the two countries.
Quoting Prime Minister Narendra Modi, in whose presence the agreement was signed in Oman, Goyal said the CEPA will energise India–Oman engagement for the 21st century and strengthen economic cooperation across multiple sectors.
Describing the agreement as strategically important, the minister said it aligns with India’s long-term economic and geopolitical interests. He noted that Oman, a member of the Gulf Cooperation Council (GCC), has signed a Free Trade Agreement with only two countries so far — the United States in 2006 and now India.
Highlighting the historical depth of bilateral relations, Goyal said India was the first country with which Oman had signed a bilateral agreement, reflecting the priority Muscat places on ties with New Delhi.
The minister said India’s trade policy has undergone a fundamental transformation, with a renewed focus on partnerships with countries where India complements rather than competes. He added that this approach would generate opportunities for youth, industries, manufacturing, and the services sector.
Among the key outcomes of the CEPA is Oman’s decision to allow the export of raw marble blocks to India for the first time. Goyal said this would enable domestic processing and value addition, create employment, reduce imports of finished marble, and ensure better quality at competitive prices.
He also pointed to opportunities in labour-intensive sectors, noting that nearly seven lakh Indians reside in Oman and send remittances of around ₹18,000 crore annually. The agreement, he said, opens wide-ranging opportunities in areas such as space, food security, pharmaceuticals, and manufacturing. Indian pharmaceutical companies will benefit from fast-track approvals and automatic clearances for recognised plants and products.
Mobility provisions under the CEPA have been strengthened, with higher quotas for inter-corporate transfers and longer durations of stay. Goyal said Indian investments in Oman could also serve as a gateway to the GCC, Africa, and parts of Central Europe, while new provisions allow employment generation for Indian workers within permitted limits.
The agreement will also promote cooperation in AYUSH, wellness, healthcare, and medical tourism.
The India–Oman CEPA is the second Free Trade Agreement signed by India in the past six months, following the pact with the United Kingdom, and forms part of India’s strategy to partner with economies that do not compete with its labour-intensive sectors.
Under the agreement, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports. Major labour-intensive sectors, including gems and jewellery, textiles, leather, footwear, engineering goods, pharmaceuticals, medical devices, and automobiles, will receive full tariff elimination.
India has offered tariff liberalisation on 77.79 per cent of its tariff lines, covering nearly 95 per cent of imports from Oman by value. Sensitive products have been kept in the exclusion category to safeguard domestic interests.
The CEPA also provides for 100 per cent foreign direct investment by Indian companies in major services sectors in Oman through commercial presence. Both sides have agreed to hold future discussions on social security coordination once Oman’s contributory social security system is implemented.
The agreement marks Oman’s first bilateral trade pact since 2006.
-ANI
