The India-Oman Comprehensive Economic Partnership Agreement (CEPA) comes into effect on June 1, 2026 [1], granting Indian exports significant duty-free access.
This agreement marks a strategic expansion of India's economic footprint in the Middle East. By removing trade barriers, the deal aims to increase the volume of goods and services flowing between the two nations and diversify India's export destinations.
Commerce Minister Piyush Goyal said the agreement is designed to strengthen trade ties. Under the terms of the CEPA, Indian exports will receive 100% duty-free access on 98.08% of Omani tariff lines [3]. This level of access is intended to provide a competitive edge to Indian businesses operating in the region.
Earlier this month, Goyal said the timeline for the agreement was moving forward. "I have had a very good meeting with the Oman team today and most probably the Oman free trade agreement will come into effect from 1st of June, 2026," Goyal said [1].
The deal represents the fifth free-trade agreement signed under the Modi government [4]. While other diplomatic efforts, such as a deal with Chile, have faced hurdles, the India-Oman partnership has proceeded on schedule [2].
The implementation of the CEPA is expected to benefit multiple key sectors by reducing the cost of doing business. The agreement focuses on streamlining customs procedures and enhancing the flow of investment between New Delhi and Muscat, a move that aligns with India's broader strategy to secure more favorable trade terms across the Gulf region.
“Indian exports will receive 100% duty-free access on 98.08% of Omani tariff lines.”
The activation of the CEPA signals India's successful push to formalize trade relations with Gulf Cooperation Council (GCC) members. By securing near-total duty-free access, India reduces its reliance on traditional Western markets and leverages Oman as a strategic gateway for further penetration into the Middle Eastern and African markets.
