India and Oman implemented a Comprehensive Economic Partnership Agreement on June 1, 2024, to eliminate tariffs on most bilateral trade [3].
This agreement is significant because it secures a strategic entry point for Indian goods into the Gulf Cooperation Council. By leveraging Oman's advanced port infrastructure, India can expand its economic footprint across the wider GCC market [2].
The deal marks the fifth free-trade agreement signed under the government of Prime Minister Narendra Modi [3]. It focuses on deepening bilateral economic relations and boosting investment between the two nations [1].
Under the terms of the CEPA, Indian exporters now have zero-duty access to 99.38% of exports sent to Oman [2]. Additionally, the agreement provides duty-free access for Indian exports across 98% of Oman's tariff lines [3].
Oman currently stands as India's second-largest trading partner within the Gulf region [2]. The removal of these trade barriers is expected to increase the volume of goods moving between the two countries, particularly in sectors that previously faced high tariffs.
Business writer RN Bhaskar said the agreement serves as a mechanism to enhance trade and investment flows. The partnership aims to utilize Oman as a gateway, allowing India to distribute goods more efficiently throughout the Middle East [2].
“Zero-duty access to 99.38% of India's exports to Oman”
The implementation of this CEPA signals India's broader strategy to diversify its trade partnerships and reduce reliance on traditional markets. By securing nearly total duty-free access to Oman, India is not just gaining a partner but a logistical hub. This positioning allows Indian firms to use Omani ports as a springboard to enter the broader GCC market more competitively.
