The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially came into effect on Monday, paving the way for wider market access, lower trade barriers and stronger economic ties between the two nations.
As per a News18 report, this pact is expected to significantly increase bilateral trade by allowing thousands of products to move with reduced or zero duties. Indian exporters stand to gain the most, while consumers in India could also see benefits from select imports arriving at lower costs.
What could become cheaper in India?
Under the agreement, India has extended tariff concessions on a limited range of products imported from Oman. Among the key beneficiaries are dates, which will enter India under quota-based duty concessions.
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Certain marble varieties and petrochemical products are also expected to receive tariff benefits.
At the same time, India has kept several sensitive sectors outside the scope of duty concessions. Products such as gold and silver bullion, jewellery, dairy items, cereals, edible oils, spices, fruits, vegetables, footwear, sports goods, and rubber and leather products remain protected.
Indian exporters get wider market access
A major highlight of the agreement is the expanded access for Indian goods in Oman. According to official estimates, 99.38% of India's exports by value will now enjoy duty-free entry into Oman, a sharp increase from 15.33% under the earlier Most Favoured Nation (MFN) framework.
Industries expected to benefit include textiles and garments, gems and jewellery, engineering goods, pharmaceuticals, processed foods, marine products, electronics, footwear and agricultural products.
The move is likely to improve the competitiveness of Indian products in Oman by removing import duties that previously stood at around 5% on many goods.
Pharma and electronics among key winners
India's pharmaceutical sector is set to gain from zero-duty access for medicines, vaccines, pharmaceutical ingredients and antibiotics, including penicillin, streptomycin and tetracycline.
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The agreement also simplifies approval procedures for products already cleared by regulators such as the US FDA and the European Medicines Agency, helping companies enter the Omani market faster.
Electronics exporters could also benefit. Oman imported electronics worth nearly USD 1.7 billion in 2025, while India's exports in the segment stood at about USD 146 million.
Boost for professionals and services trade
The CEPA extends beyond merchandise trade and offers greater mobility for Indian professionals. Business visitors can now stay in Oman for up to 90 days, independent professionals for up to 180 days, and intra-corporate transferees for as long as four years.
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The quota for intra-corporate transferees has also been raised from 20% to 50%, a move expected to support over 6,000 India-Oman joint ventures operating in the Gulf nation.
Highlighting the significance of the pact, Commerce Minister Piyush Goyal said the agreement would create jobs, strengthen manufacturing and improve the competitiveness of Indian businesses. Officials estimate that bilateral trade, which stood at USD 11.18 billion in FY 2025-26, could rise by another USD 2 billion over the next two to three years.
