India-Oman CEPA Opens New Opportunities for Trade, Services and Market Access
India and Oman share one of the oldest trading relationships, with commercial and maritime connections stretching back thousands of years. Trade in spices, textiles and frankincense, along with enduring people-to-people links, has remained a key element of this relationship. The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which took effect on June 1, 2026, establishes a framework aimed at expanding trade, investment and economic cooperation.
India ranks among Oman’s leading suppliers, and bilateral trade rose from $8.94 billion in FY2023-24 to $11.18 billion in FY2025-26, reflecting growing economic engagement between the two countries.
Expanding India’s Trade Links
The CEPA comes as India continues to diversify its trade partnerships and deepen integration with global value chains. Following agreements with the United Arab Emirates, Australia, the European Free Trade Association, the United Kingdom, New Zealand and the European Union, the Oman CEPA further strengthens India’s presence in a region that is significant for energy security, trade and strategic interests.
Under the agreement, Oman has offered duty-free access on 98.08% of its tariff lines, covering 99.38% of India’s exports by value. Prior to the agreement, only 15.33% of India’s exports entered Oman at zero duty under the Most Favoured Nation regime. The CEPA therefore provides immediate market access benefits across multiple sectors.
In textiles and apparel, India already accounts for 43% of Oman’s woven apparel imports and 31% of knitted apparel imports. The removal of the existing 5% tariff is expected to improve the competitiveness of Indian manufacturers in the market. In chemicals, India supplies nearly 39% of Oman’s inorganic chemical imports, making it one of the leading suppliers. Tariff-free access is expected to further strengthen this position.
Engineering goods are also expected to benefit. Oman imports over $3.7 billion worth of machinery and mechanical equipment and $3.3 billion worth of automotive products annually, while India’s market share stands at 5% and 2%, respectively. Preferential access under the CEPA can support higher exports of engineering products and expand India’s presence in Oman’s infrastructure, construction and industrial sectors.
In pharmaceuticals, where India holds around a 10% market share, the agreement’s significance extends beyond tariff reductions. Products approved by leading international regulators will receive fast-tracked approvals, helping reduce compliance costs and accelerate market entry. As Oman’s pharmaceutical market expands, Indian companies may be positioned to increase their presence.
Duty-free access for products such as meat, eggs, honey, butter and processed foods further strengthens India’s existing position. At the same time, sectors including dairy, cereals, edible oils and several agricultural commodities remain outside tariff concessions, ensuring protection for domestic producers.
Streamlining Procedures
The agreement introduces a number of trade facilitation measures. Oman will accept certificates issued by India’s Export Inspection Council (EIC), removing duplicate testing and inspection requirements. The country will also recognise India’s organic (NPOP) and halal certification systems.
Dedicated sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) provisions have been included to enhance regulatory transparency and cooperation. Customs clearance procedures will also be streamlined, including fast-track processing for perishables, with the objective of reducing costs and improving export efficiency.
Another key feature of the CEPA is its focus on services and professional mobility. Bilateral services trade stood at $863 million in 2024, with India recording a surplus of nearly $447 million. Despite this, India’s share in Oman’s global services imports remains just over 5%, indicating further scope for expansion.
Oman has undertaken commitments covering professionals in accounting, engineering, information technology, health care, education and consulting. The agreement also increases quotas for intra-corporate transferees and facilitates greater mobility for Indian professionals and specialists. Provisions related to AYUSH and traditional medicine create additional opportunities for Indian health care and wellness services in the Gulf region.
Strategic Location Advantage
Beyond trade figures, Oman’s geographical position adds to the significance of the agreement. Located at the crossroads of the Gulf, the Indian Ocean and East Africa, the country’s ports at Sohar, Duqm and Salalah function as major logistics and industrial hubs.
For Indian businesses, Oman serves not only as a destination market but also as an entry point to the wider Gulf Cooperation Council (GCC) region and East African economies.
The India-Oman CEPA reflects the evolution of India’s trade policy from tariff-focused negotiations to broader economic partnerships covering goods, services, investment, mobility and regulatory cooperation. Its impact spans sectors including textiles in Tamil Nadu, gems and jewellery in Gujarat, engineering in Maharashtra and Punjab, pharmaceuticals in Telangana, and seafood exports from Andhra Pradesh and Kerala.
Implementation and utilisation of the agreement will play a significant role in determining its impact. For Indian businesses, the CEPA provides access to the Oman market while also creating opportunities to engage more deeply with the Gulf region and beyond.