New Delhi: The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially came into effect on Monday, marking a significant milestone in economic ties between the two countries. The landmark trade deal is expected to increase bilateral trade, create new business opportunities, and provide duty-free access for a vast majority of Indian exports to Oman.
Under the agreement, Indian consumers may benefit from lower prices on selected imports from Oman, particularly dates, which will enter India under quota-based duty concessions. Tariff benefits have also been extended to certain marble and petrochemical products. However, India has protected several sensitive sectors, including gold and silver bullion, jewellery, dairy products, cereals, edible oils, spices, footwear, and leather goods, which remain outside the concession framework.
The biggest gains are expected for Indian exporters. Nearly 99.4% of India’s exports to Oman by value will now enjoy duty-free access, compared with just over 15% under the earlier Most Favoured Nation (MFN) regime. Key sectors set to benefit include textiles, garments, engineering goods, pharmaceuticals, electronics, processed foods, marine products, footwear, and agricultural products.
India’s pharmaceutical industry is expected to be among the largest beneficiaries. Medicines, vaccines, pharmaceutical ingredients, and several antibiotics will receive zero-duty access. The agreement also simplifies regulatory approvals for products already cleared by leading global agencies, helping Indian drugmakers enter the Omani market faster.
The pact further enhances opportunities for Indian professionals by easing mobility rules. Business visitors, independent professionals, and intra-corporate transferees will be allowed longer stays, while quotas for company transfers have been significantly increased.
With bilateral trade reaching USD 11.18 billion in FY 2025-26, officials expect the CEPA to add nearly USD 2 billion in trade over the next few years, strengthening economic cooperation and expanding India’s presence in the Gulf region.
