A Comprehensive Economic Partnership Agreement (CEPA) between India and Oman came into force on June 1, 2026 [1].
The deal is designed to boost bilateral trade and create jobs while strengthening micro, small, and medium enterprises. It also serves as a strategic move for India to offset the economic impact of high U.S. import tariffs [5, 6].
Under the terms of the agreement, Indian exporters receive near-complete duty-free access to the Omani market [4]. Specifically, the pact unlocks duty-free access for Indian exports across 98.08% of Oman's tariff lines [3].
Piyush Goyal, India's Union Commerce and Industry Minister, said the India‑Oman CEPA will boost exports, create jobs, and strengthen MSMEs by providing near‑complete duty‑free access for Indian goods and expanding opportunities in services [4].
The agreement aims to deepen strategic ties between the two nations. By reducing trade barriers, the governments intend to increase the flow of investment and expand the reach of Indian services within the Gulf nation [1, 5].
Industry officials said that the agreement provides a significant advantage for Indian goods entering Oman. The removal of tariffs on the vast majority of product lines is expected to make Indian exports more competitive compared to those from other nations [2, 3].
“The India‑Oman CEPA will boost exports, create jobs and strengthen MSMEs”
This agreement signals India's broader strategy to diversify its trade partnerships and reduce reliance on Western markets facing protectionist trends. By securing a foothold in Oman, India strengthens its economic presence in the Gulf and creates a strategic trade corridor that mitigates the risks associated with fluctuating U.S. trade policies.
