India and Oman on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA) that will give duty-free access to over 98% of India’s exports to Oman.
India agreed to cut tariffs on select Omani products such as dates, marbles and petrochemicals. The agreement is expected to come into force from the first quarter of the next calendar year, PTI reported.
The pact was signed in Muscat by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, in the presence of Prime Minister Narendra Modi.
What India gains
Oman has offered zero-duty access on over 98% of its tariff lines, covering 99.38% of India’s exports to the country. Immediate tariff elimination will apply to 97.96% of product categories.
All major labour-intensive sectors, including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices and automobiles — will see full tariff elimination. At present, such goods attract around 5% import duty in Oman.
India’s tariff concessions
India will provide tariff liberalisation on 77.79% of its total tariff lines (12,556), covering 94.81% of imports from Oman by value.
For products sensitive to India but of export interest to Oman such as dates, marbles and petrochemical products — concessions will largely be offered through tariff-rate quotas (TRQs).
To safeguard domestic interests, India has kept several products in the exclusion list, including dairy, tea, coffee, rubber, tobacco, gold and silver bullion, jewellery, footwear, sports goods, and scrap of several base metals.
Services and investment push
On the services front, Oman has made commitments across a wide range of sectors, including computer-related services, professional and business services, audio-visual services, research and development, education and health services.
Oman’s global services imports stand at $12.52 billion, with India’s share currently at 5.31%, highlighting what officials described as significant untapped potential for Indian service providers.
The agreement also allows 100% foreign direct investment by Indian companies in major services sectors in Oman through commercial presence.
Mobility framework for professionals
A key highlight of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered wide-ranging commitments under Mode 4 (movement of skilled professionals).
This includes raising the quota for intra-corporate transferees from 20% to 50%, and extending the permitted stay for contractual service suppliers from 90 days to two years, with the option of a further two-year extension.
More liberal entry and stay conditions will apply to professionals in sectors such as accountancy, taxation, architecture, medical and allied services, aimed at enabling deeper professional engagement.
Trade, remittances and strategic ties
India–Oman bilateral trade stood at about $10.5 billion in 2024–25, with exports of $4 billion and imports of $6.54 billion. Oman is India’s third-largest export destination among GCC countries.
Nearly 7 lakh Indian nationals live in Oman, and India receives around $2 billion in remittances annually from the country. More than 6,000 Indian establishments operate in Oman, and India has received $615.54 million in FDI from Oman between April 2000 and September 2025.
Why the pact matters
This is India’s second trade pact in six months, and the second CEPA with a GCC member after the UAE agreement implemented in May 2022. Talks are also expected with Qatar, while other GCC members include Bahrain, Kuwait and Saudi Arabia.
For Oman, this is its first bilateral trade agreement since signing one with the US in 2006. Negotiations for the CEPA began in November 2023 and concluded this year.
The agreement comes at a time when India is facing steep 50% tariffs in the US, its largest export destination, making diversification of trade partners a key strategic priority.
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