India–Oman CEPA Explained: What the Trade Pact Delivers for Exports, Services and Jobs

The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman marks a decisive upgrade in bilateral economic ties. Rather than a narrow tariff-cutting deal, the CEPA creates a single, predictable framework covering goods, services, investment, professional mobility and regulatory cooperation. With bilateral trade reaching “$10.61 billion in FY 2024–25”, the agreement seeks to convert steady growth into sustained, diversified expansion—while protecting sensitive domestic sectors through calibrated safeguards.

What makes a CEPA different from a standard FTA?

A CEPA goes beyond trade in goods. It brings together market access for services, investment facilitation, mobility of professionals, dispute settlement and cooperation on regulations. Crucially, it also allows for mutual recognition arrangements—acknowledging different regulatory systems where outcomes are equivalent. For businesses, this translates into lower compliance friction, faster approvals and greater certainty over long-term market access.

The scale of India–Oman economic engagement

Trade and commerce have long anchored India–Oman relations. In FY 2024–25, bilateral trade rose to “$10.61 billion”, up from “$8.94 billion” a year earlier. India’s exports stood at “$4.06 billion”, while imports—largely energy-linked—were “$6.55 billion”. Services trade has also expanded steadily, led by telecom, IT, business services, transport and travel, providing a strong foundation for a comprehensive agreement.

India’s big gain: near-universal duty-free access in Oman

The CEPA’s headline benefit is immediate and sweeping market access for Indian goods. India secures “100% duty-free entry in Oman across 98.08% of tariff lines”, covering “99.38% of export value”, effective from Day One. Earlier, only a small fraction of Indian exports entered Oman at zero duty under MFN rules.

This shift sharply improves price competitiveness for Indian products that previously faced duties of up to 5%, opening opportunities across engineering goods, pharmaceuticals, agriculture and processed food, marine products, textiles, chemicals, electronics, plastics, and gems and jewellery—into an Omani import market exceeding “$28 billion”.

India’s offer—and how sensitive sectors are protected

On its side, India has liberalised “77.79% of tariff lines”, covering “94.81% of imports from Oman by value”, while retaining a clear exclusion list. Sensitive sectors—such as key agricultural products, certain chemicals, petroleum-related items, textiles, leather and footwear—remain protected. This calibrated approach aims to balance export growth with domestic competitiveness, farmer interests and MSME stability.

Engineering goods: restoring momentum

Engineering exports to Oman reached “$875.8 million” in FY 2024–25. With all engineering products now enjoying zero-duty access, exports are projected to rise to “$1.3–1.6 billion by 2030”. Gains are expected in iron and steel for infrastructure, industrial machinery, electrical equipment, copper products and automobiles—benefiting MSMEs and supporting Oman’s diversification drive.

Pharmaceuticals: tariffs plus regulatory speed

Oman’s pharma market is import-dependent and growing. The CEPA combines zero-duty access with regulatory fast-tracking for medicines approved by stringent regulators such as the USFDA and EMA. Acceptance of GMP certificates, streamlined inspections and faster marketing authorisations reduce costs and timelines for Indian exporters—strengthening India’s role as a reliable supplier of affordable medicines and APIs.

Marine products: employment-intensive gains

Marine exports receive immediate duty-free access, replacing duties of up to 5%. Given Oman’s growing seafood imports and India’s modest current market share, the agreement opens scope for expansion in shrimp and fish exports—supporting jobs across coastal regions and processing hubs.

Agriculture and processed food: expansion with safeguards

India is already a major supplier of agricultural products to Oman, with exports growing at double-digit rates. The CEPA reinforces gains in items such as rice, eggs, sweet biscuits, butter, condiments and certain meat products through duty-free or phased access. At the same time, India has excluded sensitive products—like dairy, edible oils, cereals and fresh produce—from immediate liberalisation, ensuring food security and farmer protection.

Textiles, plastics and gems: labour-intensive dividends

Zero-duty access for textiles and apparel—earlier subject to ~5% tariffs—strengthens India’s competitiveness against suppliers like China, Bangladesh and Türkiye. Plastics and plastic articles also gain an immediate price edge. In gems and jewellery, duty elimination improves prospects for diamonds and gold jewellery, supporting skilled employment in clusters across Gujarat, Maharashtra, Rajasthan, Tamil Nadu and West Bengal.

Services and professional mobility: the depth of the deal

Services are a central pillar of the CEPA. Oman has undertaken commitments across “127 services sub-sectors”, including IT, business services, R&D, education, health and tourism. The ceiling for “Intra-Corporate Transferees” has been raised from “20% to 50%”, allowing Indian firms to deploy specialist and managerial staff more flexibly. For the first time in an FTA with Oman, defined categories of professionals receive clearer mobility assurances—adding predictability for Indian service exporters.

Regulatory cooperation: cutting friction beyond tariffs

The CEPA includes dedicated chapters on:

” “”Technical Barriers to Trade (TBT):”* ensuring standards and conformity procedures do not become disguised trade barriers.
” “”Sanitary and Phytosanitary (SPS) measures:”* facilitating trade in food and agricultural products through transparency and cooperation.

Acceptance of certificates issued by Indian authorities, recognition of halal and organic certifications, and harmonisation in priority sectors aim to reduce duplication, delays and compliance costs.

What the CEPA changes—and what to watch next

The India–Oman CEPA delivers immediate, near-universal market access for Indian exports while keeping India’s own opening measured and politically sustainable. Its real test will lie in implementation—how quickly exporters translate tariff gains into contracts, how smoothly regulatory cooperation works, and whether services and mobility commitments convert into on-ground opportunities.

If executed well, the agreement could deepen supply chains, generate employment across labour-intensive sectors, and position Oman as a gateway for Indian firms into the wider GCC and East African markets—making the CEPA a template for India’s next generation of “trade-plus” agreements.