India–Oman CEPA Comes into Force: A New Trade Gateway for Viksit Bharat 2047

• India and Oman have operationalized the India–Oman Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in bilateral economic relations.
• The agreement officially entered into force on June 1, 2026, creating one of India’s most comprehensive trade partnerships in the Gulf region.
• The CEPA was signed on December 18, 2025, in Muscat in the presence of Prime Minister Narendra Modi and Haitham bin Tarik Al Said.
• After completing domestic ratification procedures, both countries brought the agreement into effect from June 1, 2026.

A Landmark Agreement for Trade and Economic Integration

• The CEPA represents a major step in India’s strategy to deepen economic engagement with the Gulf region and strengthen supply chains, exports, investments, and services trade.
• Oman is India’s second-largest trading partner in the Gulf region and serves as a gateway to the wider GCC and East African markets. Bilateral trade between the two countries reached USD 11.18 billion in FY 2025-26, up from USD 10.61 billion in FY 2024-25.
• The agreement covers:

1. Trade in goods
2. Trade in services
3. Professional mobility
4. Investment facilitation
5. Regulatory cooperation
6. Trade facilitation measures
7. Non-tariff barrier reduction

Unprecedented Market Access for Indian Exports

• One of the most significant achievements of the CEPA is that 99.38% of India’s exports by value will receive duty-free access to Oman, covering 98.08% of Oman’s tariff lines. Earlier, only 15.33% of Indian exports enjoyed duty-free access under the Most Favoured Nation (MFN) regime.
• The immediate elimination of tariffs is expected to provide a major competitive advantage to Indian exporters in Oman’s nearly USD 28 billion import market. Key beneficiary sectors include:

1. Agriculture and processed foods
2. Marine products
3. Gems and jewellery
4. Pharmaceuticals
5. Engineering goods
6. Electronics
7. Textiles
8. Footwear
9. Automobiles

Protection for Sensitive Indian Sectors

While opening new export opportunities, India has safeguarded sensitive sectors by excluding them from tariff concessions. These include:

• Dairy products
• Cereals
• Fruits and vegetables
• Edible oils
• Oilseeds
• Rubber
• Leather
• Spices

Tariff Rate Quotas (TRQs) and Minimum Import Price mechanisms have also been incorporated for selected products to protect domestic industries and farmers.

Major Benefits for Key Export Sectors

Agriculture and Food Processing

India is already Oman’s second-largest agricultural supplier with a market share of 17.8%. The CEPA provides duty-free access for products such as:

• Honey
• Cashews
• Basmati rice
• Butter
• Sweet biscuits
• Mangoes
• Frozen bovine meat
• Eggs

The agreement is expected to benefit farmers and agri-exporters across states such as Uttar Pradesh, Punjab, Haryana, Maharashtra, Gujarat, Andhra Pradesh, and Tamil Nadu.

Marine Products

All marine products, including shrimp, fish, and cuttlefish, will now enjoy immediate duty-free access. This is expected to significantly boost exports from coastal states such as Andhra Pradesh, Kerala, Tamil Nadu, and Gujarat.

Gems and Jewellery

Import duties of up to 5% on gems and jewellery have been removed. India’s jewellery exports to Oman are projected to increase nearly six-fold, reaching approximately USD 150 million within three years. Major jewellery clusters in Surat, Jaipur, Mumbai, Kolkata, and Chennai are expected to benefit.

Pharmaceuticals

The CEPA introduces a breakthrough regulatory provision under which products approved by agencies such as:

• USFDA (United States)
• EMA (European Union)
• MHRA (United Kingdom)
• TGA (Australia)

will receive marketing authorization in Oman within 90 days without prior inspection in many cases. This will significantly reduce compliance costs and accelerate market entry for Indian pharmaceutical companies.

Engineering and Electronics

All engineering products and electronics will now enjoy zero-duty access. Engineering exports to Oman, which stood at USD 875.83 million in FY 2025-26, are expected to rise to between USD 1.3 billion and USD 1.6 billion by 2030.

Historic Services Market Access

The agreement provides India’s best-ever services access commitment from a GCC country. Oman has opened 127 services sub-sectors, covering:

• IT and computer services
• Engineering
• Healthcare
• Education
• Financial services
• Telecommunications
• Tourism
• Construction
• Research and Development

For the first time, Oman has made binding commitments for Indian professionals in sectors such as accounting, engineering, medicine, information technology, and education.

Improved Mobility for Indian Professionals

The CEPA provides legally enforceable mobility pathways:

• Business visitors: Up to 90 days stay
• Independent professionals: Up to 180 days stay
• Intra-Corporate Transferees (ICTs): Up to 4 years stay

The ICT employment ceiling has also been increased from 20% to 50%, creating greater opportunities for Indian professionals.

Trade Facilitation and Regulatory Cooperation

The agreement introduces several trade facilitation measures:

• Mandatory acceptance of certificates issued by India’s Export Inspection Council (EIC)
• Recognition of India’s organic certification (NPOP)
• Recognition of Indian halal certification systems
• Faster customs clearances
• Reduced non-tariff barriers
• Special fast-track mechanisms for perishable goods

These measures are expected to reduce transaction costs and improve ease of doing business.

Conclusion

The India–Oman CEPA represents one of India’s most comprehensive trade agreements with a Gulf nation. By providing near-universal duty-free access, expanding services trade, improving professional mobility, and reducing regulatory barriers, the agreement is expected to boost exports, attract investments, create jobs, and strengthen India’s economic integration with the Gulf and East Africa under the vision of Viksit Bharat 2047.