India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a major step in their expanding economic relationship. The agreement creates a unified framework for trade in goods and services, investment, professional mobility and regulatory cooperation. It goes beyond tariff reductions and introduces mechanisms for long-term economic integration, predictable market access, and smoother business conditions.
The deal comes at a time when bilateral trade has been steadily rising. Commerce between the two countries reached USD 10.61 billion in FY 2024–25, up from USD 8.94 billion in FY 2023–24. Services trade has also grown, with India’s exports increasing from USD 397 million in 2020 to USD 617 million in 2023. This trajectory provided a strong basis for a deeper trade agreement.
A key gain for India under the CEPA is 100 percent duty-free market access in Oman across 98.08 percent of tariff lines, covering 99.38 percent of India’s exports by value. These concessions take effect from the first day of implementation. Until now, only 15.33 percent of India’s export value entered Oman duty-free under the MFN regime. Sectors such as minerals, chemicals, machinery, plastics, textiles, agri and marine products, and gems and jewellery stand to benefit from improved price competitiveness and faster market entry. Oman’s import market of over USD 28 billion provides significant room for expansion.
India has also made market access offers, covering tariff liberalisation on 77.79 percent of tariff lines corresponding to 94.81 percent of imports from Oman. To protect domestic interests, India has retained an exclusion list for sensitive sectors such as dairy, cereals, spices, petroleum products, rubber, textiles, leather, certain chemicals and several agricultural items. This calibrated approach seeks to balance trade expansion with safeguards for MSMEs, farmers and labour-intensive industries.
Sector-level assessments indicate considerable gains. Engineering goods worth USD 875.83 million were exported to Oman in FY 2024–25, and tariff elimination is expected to raise this to USD 1.3–1.6 billion by 2030. Pharmaceuticals will benefit from binding zero-duty access and new fast-track approval norms for products cleared by stringent regulators such as the USFDA and EMA, reducing compliance costs and speeding up market entry.
Marine products receive immediate duty-free access, improving pricing for shrimp and fish exports. Agriculture and processed food exports, including bovine meat, eggs, biscuits, butter, honey and condiments, are expected to consolidate India’s position as a major supplier, while phased tariff elimination on selected products protects farmers and food security interests. Textiles, plastics, electronics, chemicals and gems and jewellery also gain from duty-free access, positioning India to expand its share in Oman’s import markets and leverage Oman as a gateway to GCC and East African destinations.
Services form another strong pillar of the CEPA. In 2024, bilateral services trade stood at USD 863 million with India enjoying a surplus of USD 447 million. Under the CEPA, Oman has undertaken liberal commitments across 127 sub-sectors, including professional services, computer and IT-related services, audio-visual services, education, R&D, health, environmental services, tourism and other business services. Provisions on professional mobility are notable: the ceiling for intra-corporate transferees has been raised from 20 percent to 50 percent, and—for the first time under any FTA with Oman—a defined category of professionals in fields such as engineering, medical, IT, education and consulting has been recognised. The agreement also enables future negotiations on a Social Security Agreement to protect workers against dual contributions.
On the regulatory front, the CEPA incorporates cooperation on Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) measures. By promoting transparency, mutual recognition and the use of international standards, the agreement aims to reduce non-tariff barriers. Acceptance of certificates issued by India’s Export Inspection Council (EIC) is expected to simplify inspections and avoid redundant testing in Oman. In pharmaceuticals, acceptance of Good Manufacturing Practices documents and fast-track authorisations ease approval timelines. For halal and organic products, recognition of certification systems will reduce duplication and facilitate smoother exports.
The agreement’s geographic and employment impact is expected to be broad-based. Agricultural and food-processing gains span states such as Uttar Pradesh, Punjab, Haryana, Andhra Pradesh, Maharashtra, Gujarat, Tamil Nadu and Telangana, while labour-intensive sectors such as textiles, leather, plastics, gems and jewellery and marine products stand to generate jobs across major industrial clusters. With many of these industries being MSME-driven, preferential market access helps Indian firms compete more effectively against suppliers from China, Türkiye, Italy, Thailand and GCC economies.
Overall, the India–Oman CEPA is positioned as a balanced and strategic agreement that deepens economic integration while retaining domestic safeguards. By expanding market access, supporting investment, easing professional mobility and strengthening regulatory cooperation, the deal is expected to boost trade, create employment, enhance supply chain resilience and contribute to sustained bilateral engagement over the long term.
