A Comprehensive Economic Partnership Agreement between India and Oman officially came into effect on June 1, 2026 [2].
The deal aims to strengthen economic ties by reducing trade barriers and expanding the footprint of Indian businesses in the Middle East. By lowering tariffs on key imports and exports, both nations seek to diversify their trade portfolios and increase bilateral investment flows.
Commerce Minister Piyush Goyal briefed the media on the rollout during the CII Annual Business Summit 2026 in New Delhi [1]. The agreement, also referred to as a Free Trade Agreement, provides significant advantages for Indian exporters through duty-free access to 98.08% of tariff lines in the Omani market [1, 3].
Under the terms of the pact, India will reduce tariffs on several key Omani imports, including petrochemicals, marble, and dates [3]. These reductions are designed to make Omani goods more competitive within the Indian domestic market while facilitating a steadier flow of raw materials for Indian industry.
The agreement focuses on several key sectors to ensure a broad-based economic benefit. By eliminating duties on a vast majority of export lines, the pact is expected to increase the volume of goods moving between the two nations — a move that aligns with India's broader strategy of securing trade partnerships across the Gulf region [3].
Goyal said the agreement is set to bolster the economic relationship between the two countries as it enters this new phase of implementation [1].
“India and Oman’s trade agreement officially took effect on June 1, 2026.”
This agreement signals India's strategic push to deepen economic integration with Gulf Cooperation Council (GCC) members. By securing near-total duty-free access for its exports, India is positioning itself to compete more aggressively in the Middle Eastern market, while simultaneously diversifying its energy and raw material imports from Oman to reduce supply chain vulnerabilities.
