Key Highlights:
- Zero duty access for 98.08 percent of Oman’s tariff lines, covering 99.38 percent of India’s exports by value
Major boost for labour intensive sectors including textiles, gems and jewellery, leather, footwear, engineering goods, pharmaceuticals and automobiles - Oman offers ambitious services commitments across 127 sub sectors, a first of its kind
- Enhanced mobility and longer stay provisions for Indian professionals under Mode 4
100 percent FDI permitted for Indian companies in major services sectors in Oman - First ever comprehensive commitment by any country on Traditional Medicine
India and Oman have signed a Comprehensive Economic Partnership Agreement, marking a significant milestone in India’s economic engagement with the Gulf region. The agreement was signed by Commerce and Industry Minister Shri Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion H.E. Qais bin Mohammed Al Yousef, in the presence of Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik.
Trade Scale and Strategic Context
Oman is a key strategic partner for India and a vital gateway to the Middle East and Africa. Bilateral trade currently stands at over USD 10 billion, with strong potential for expansion under the CEPA framework. Over 7 lakh Indian nationals reside in Oman, alongside more than 6,000 Indian establishments operating across sectors. Annual remittances of around USD 2 billion underscore the depth of economic ties.
This is India’s second Free Trade Agreement in the last six months, following the agreement with the United Kingdom, and aligns with India’s strategy of partnering with economies that complement its labour intensive strengths.
Tariff Liberalisation and Market Access
The CEPA delivers unprecedented market access for Indian goods. Oman has committed to zero duty access on 98.08 percent of its tariff lines, with immediate elimination on 97.96 percent. Key beneficiary sectors include textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices and automobiles, supporting employment, MSMEs and women led enterprises.
India, in turn, will liberalise tariffs on 77.79 percent of its tariff lines, covering 94.81 percent of imports from Oman by value, while safeguarding sensitive sectors such as dairy, tea, coffee, precious metals and select labour intensive products.
Services, Mobility and Investment
The services chapter is a major highlight. Oman has offered wide ranging commitments across computer related services, business and professional services, audio visual, R and D, education and health services. Enhanced mobility provisions include higher quotas for intra corporate transferees, extended stay for contractual service suppliers up to two years with possible extension, and liberalised entry for professionals in accountancy, taxation, architecture, medical and allied sectors.
The agreement also permits 100 percent foreign direct investment by Indian companies in major services sectors and provides for future discussions on social security coordination.
Beyond Trade in Goods
A landmark feature is Oman’s first ever commitment on Traditional Medicine across all modes of supply, opening new avenues for India’s AYUSH and wellness sectors. The CEPA also fast tracks pharmaceutical marketing approvals, enables mutual recognition of halal certification, accepts India’s organic NPOP certification, and strengthens cooperation on standards and conformity assessment.
A New Chapter in India–Oman Relations
The India–Oman CEPA is expected to boost trade, strengthen supply chains, generate employment and foster long term economic integration. It reflects a balanced and forward looking framework that expands opportunities while safeguarding national interests, setting the stage for deeper and more resilient bilateral engagement in the years ahead.
