India Oman CEPA signed under PM Modi grants zero-duty access on 98% tariff lines, boosts exports, services, jobs, mobility, and Gulf trade ties.
Key Highlights
- India Oman CEPA signed in New Delhi under the leadership of Prime Minister Narendra Modi.
- Oman grants zero-duty access on 98.08% tariff lines covering 99.38% of India’s exports.
- Labour-intensive sectors, MSMEs, artisans, and pharma exporters gain major boost.
- First-ever commitments by Oman on services, professional mobility, and traditional medicine.
- Second Free Trade Agreement signed by India in six months after the UK deal.
The India Oman CEPA was signed on Thursday in New Delhi, marking a major milestone in India’s strategic and economic engagement with the Gulf region. The Comprehensive Economic Partnership Agreement was concluded in the presence of Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik of Oman, ushering in a new era of trade, services, and investment cooperation.
The agreement was formally signed by Union Commerce and Industry Minister Shri Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, H.E. Qais bin Mohammed Al Yousef. The India Oman CEPA reflects a shared commitment to deepen bilateral economic integration while ensuring inclusive growth and long-term stability.
A new chapter in India-Oman strategic partnership!
— Randhir Jaiswal (@MEAIndia) December 18, 2025
India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) today, marking a significant milestone in the bilateral economic relations.
The agreement will increase the trade between India and Oman, boost… pic.twitter.com/MuMMsAcwR5
India Oman CEPA Strengthens Gulf Trade and Strategic Ties
Oman is a key strategic partner for India and serves as an important gateway to the wider Middle East and African markets. Nearly seven lakh Indian nationals reside in Oman, including merchant families with a presence dating back more than 200 years. Over 6,000 Indian establishments operate across sectors in Oman, contributing significantly to its economy.
Bilateral trade between India and Oman currently stands at over USD 10 billion. With the implementation of the India Oman CEPA, trade volumes are expected to rise substantially through improved market access, simplified regulations, and reduced trade barriers.
Zero-Duty Access for Indian Exports Under India Oman CEPA
A central pillar of the India Oman CEPA is the unprecedented tariff liberalisation offered by Oman. Under the agreement, Oman has granted zero-duty access on 98.08% of its tariff lines, covering 99.38% of India’s exports by value. Immediate tariff elimination applies to 97.96% of tariff lines.
This move provides a major boost to India’s labour-intensive sectors, including textiles, leather, footwear, gems and jewellery, engineering products, plastics, furniture, agricultural goods, pharmaceuticals, medical devices, and automobiles. The India Oman CEPA is expected to generate employment, empower artisans, strengthen MSMEs, and support women-led enterprises across India.
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India’s Tariff Commitments with Built-In Safeguards
While opening its market, India has adopted a calibrated approach under the India Oman CEPA. India has offered tariff liberalisation on 77.79% of its total tariff lines, covering 94.81% of imports from Oman by value. For sensitive products, liberalisation is largely provided through tariff-rate quotas.
Key sectors such as dairy, tea, coffee, rubber, tobacco, precious metals, jewellery, footwear, sports goods, and certain metal scrap categories have been excluded. These safeguards ensure that domestic producers and labour-intensive industries remain protected.
Services Sector Gains Through India Oman CEPA
The services sector, a major driver of India’s economy, stands to gain significantly from the India Oman CEPA. Oman’s global services imports are valued at USD 12.52 billion, while India’s share remains modest at 5.31%, indicating vast untapped potential.
Oman has offered commitments across 127 services sub-sectors, covering computer-related services, business and professional services, audio-visual services, research and development, education, and health services. These provisions are expected to unlock high-value opportunities for Indian service providers and promote skilled job creation.
Enhanced Mobility for Indian Professionals
One of the most notable features of the India Oman CEPA is enhanced mobility for Indian professionals. For the first time, Oman has made wide-ranging commitments under Mode-4. The quota for intra-corporate transferees has been increased from 20% to 50%.
Contractual service suppliers can now stay for up to two years, extendable by another two years. Liberalised entry and stay conditions have also been granted for professionals in accountancy, taxation, architecture, medical, and allied services, strengthening people-to-people and professional ties.
FDI, Traditional Medicine, and Pharma Provisions
The India Oman CEPA allows 100% foreign direct investment by Indian companies in major services sectors in Oman through commercial presence. Both sides have also agreed to hold future discussions on social security coordination once Oman’s contributory system is implemented.
In a global first, Oman has made comprehensive commitments on traditional medicine across all modes of supply. This opens major opportunities for India’s AYUSH and wellness sectors and promotes medical value travel.
Indian pharmaceutical exporters will benefit from fast-tracked marketing approvals for products approved by regulators such as USFDA, EMA, and UK authorities. Acceptance of GMP inspection documents will further reduce time and compliance costs.
The agreement also facilitates mutual recognition of Halal certification, acceptance of India’s NPOP certification for organic products, and enhanced cooperation in standards and conformity assessment, addressing long-standing non-tariff barriers.
Second FTA in Six Months Signals Trade Momentum
The India Oman CEPA is India’s second Free Trade Agreement in the last six months, following the landmark pact with the United Kingdom. It aligns with India’s broader strategy of concluding trade agreements with economies that complement India’s labour-intensive strengths.
Commerce Minister Piyush Goyal said the India Oman CEPA strengthens historic ties and creates an ambitious, balanced framework that boosts exports, services, and professional mobility while safeguarding national interests.
