India-Oman Comprehensive Economic Partnership

India-Oman Comprehensive Economic Partnership Agreement (CEPA) Summary

Overview

• Historical Significance: India and Oman have initiated a new era of strategic economic partnership through the CEPA, signed on December 18, 2025, in Muscat.
• Implementation Date: Effective from June 1, 2026.

Key Features of CEPA

• Zero Tariff Access: CEPA offers 99.38% tariff-free access for Indian exports to Oman, enhancing competitiveness in the Omani market.
• Bilateral Trade Growth: Expected to significantly increase bilateral trade, exports, and employment opportunities.
• Sectoral Benefits: Full tariff removal in labor-intensive sectors such as agriculture, textiles, seafood, pharmaceuticals, and engineering goods.

Economic Data

• Bilateral Trade Figures: Trade between India and Oman reached $11.18 billion in FY 2025-26, up from $10.61 billion in FY 2024-25.
• Market Access: Indian exporters previously had only 15.33% of their exports to Oman under duty-free access; CEPA expands this to nearly the entire market.

Strategic Importance

• Gulf Cooperation Council (GCC) Gateway: Oman serves as a strategic gateway to the broader GCC and East African markets due to its advanced logistics and port infrastructure.
• Professional Mobility: CEPA enhances opportunities for Indian professionals in 127 service sub-sectors, increasing the quota for ICT professionals from 20% to 50%.

Agriculture and Food Security

• Export Growth: India is the second-largest agricultural supplier to Oman, with exports anticipated to grow due to tariff removals on key products such as honey, spices, and basmati rice.
• Market Share: Indian exports of beef and eggs dominate Oman's imports, with over 94% and 98% market shares, respectively.

Pharmaceutical Sector

• Market Opportunities: CEPA allows for zero-duty access for pharmaceuticals, with Oman’s pharmaceutical market projected to grow from $302.84 million in 2025 to $473.71 million by 2031.

Engineering and Electronics

• Tariff Benefits: All engineering products will have zero tariffs, replacing previous MFN rates of up to 5%. This is expected to boost India’s engineering exports significantly.

Services Sector

• Service Trade Growth: In 2024, the service trade was valued at $863 million in favor of India. CEPA includes significant commitments in professional services, enhancing prospects for sectors like IT, healthcare, and education.

Regulatory Framework

• Trade Facilitation: Oman will accept Indian export inspection certificates, reducing redundancy in testing and inspections.
• Smart Regulation: Dedicated chapters on SPS (Sanitary and Phytosanitary) and TBT (Technical Barriers to Trade) aim to improve transparency and reduce non-tariff barriers.

Investment and Economic Structure

• Investment Promotion: CEPA establishes a structured framework to facilitate investment in prioritized sectors such as manufacturing, logistics, and energy.
• Support for MSMEs: The agreement aims to bolster the competitiveness of micro, small, and medium enterprises (MSMEs) in India.

Conclusion

• Future Prospects: The CEPA is a significant milestone in enhancing India-Oman economic relations, aiming to create a resilient, integrated, and competitive economy as part of India's vision for a developed nation by 2047.