The India-Oman Comprehensive Economic Partnership Agreement has entered into force, launching a new free-trade regime between the two nations [1], [2].
This agreement marks a strategic shift in regional trade, aiming to deepen economic ties and diversify export markets. By reducing tariffs, the pact seeks to strengthen the commercial bond between New Delhi and Muscat while providing a buffer against external economic pressures.
Union Minister of Commerce & Industry Piyush Goyal marked the milestone at a ceremony in New Delhi [1]. The agreement was originally signed in Muscat, Oman [1]. Goyal said the deal is not simply a trade agreement, but a statement of civilisational trust [1].
A primary feature of the CEPA is the significant reduction of trade barriers. Goyal said the agreement will give duty-free access for about 98% [2] of Indian exports to the Omani market. This access is intended to boost the volume of goods moving between the two countries and support Indian businesses expanding into the Gulf region.
There are conflicting reports regarding the exact timeline of the pact's implementation. Some records indicate the agreement took effect on June 24, 2024 [1], while other reports state it may have kicked in during June 2024 [3]. However, other sources indicate the agreement was expected to take effect on June 1, 2026 [2].
The move comes as India accelerates its pursuit of free-trade agreements to counter U.S. tariff pressures and expand its global export footprint [4]. By securing preferential access to the Omani market, India aims to stabilize its trade flows, and increase its competitiveness in the Middle East.
“CEPA is not simply a trade agreement, but a statement of civilisational trust.”
The implementation of the India-Oman CEPA signifies India's broader strategy to reduce reliance on Western markets by securing strategic partnerships in the Global South. By achieving nearly total duty-free access for its exports, India is positioning itself to capture a larger share of the Omani economy, which serves as a gateway to the wider Gulf Cooperation Council (GCC) region.
