- India-Oman CEPA: 98% duty-free access for Indian exports
- Boost to services FDI, electronics, marble trade
- Effective Q1 2026; Oman's first FTA since 2006
India and Oman have sealed a landmark agreement of Comprehensive Economic Partnership Agreement (CEPA) in Muscat, which equips Indian exporters with almost free of duties access to more than 98% of the tariff lines of Oman while the export value of India covered is close to 99%. The deal inked by Commerce and Industry Minister Piyush Goyal and his Omani counterpart Qais bin Mohammed Al Yousef in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik is anticipated to be in operation in the first quarter of 2026, thus, it is India's sixth FTA in a row while Oman's first bilateral deal has been with the US since 2006.
Commerce Secretary Rajesh Agrawal pointed out that the most significant advance has been achieved in the where Oman has allowed Indian companies 100% Foreign Direct Investment and made a binding commitment to 127 sub-sectors like IT, business services, R&D, education, and health. The movement of skilled professionals will thereby be more convenient, and the Indian service providers will enjoy more substantial opportunities in a $12.5 billion services import market of Oman.
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As far as the trade in goods is concerned, sectors such as are going to gain from Oman's re-export to the region, whereas Omani will facilitate India's construction industry. The labour-intensive exports of textiles, gems & jewellery, pharmaceuticals, and engineering products will be fully relieved of tariffs. On the other side of the fence, India implements tariff relaxation on approximately 78% of lines, with tariff-rate quotas for Omani goods that are sensitive such as dates, marble, and petrochemicals, and at the same time, excludes dairy, tobacco, and gold.
The agreement ensures energy security by maintaining petrochemical imports from Oman and, at the same time, facilitates the attainment of overarching objectives like job creation and diversification in the face of worldwide tariff challenges. This CEPA intensifies the strong relationship that existed, with more than 700,000 Indians living in Oman and sending billions back home every year, and also makes both countries ready for higher trade, investment, and regional connectivity.