India Oman CEPA Marks New Era In Bilateral Trade

India and Oman have entered a new phase of economic engagement with the signing of a Comprehensive Economic Partnership Agreement (CEPA). The pact is aimed at expanding trade, investment and services cooperation, while strengthening long-standing strategic ties between the two countries. The agreement reflects India’s broader push to deepen trade relations with key partners in the Gulf region.

PM Modi Calls Agreement A Historic Milestone

Prime Minister described the CEPA as a “historic step forward” that will energise India–Oman relations in the 21st century. He noted that the agreement would generate fresh opportunities for businesses and youth in both nations, with long-term positive effects on trade and investment flows.

Key Features Of The India–Oman CEPA

Under the agreement, Oman has offered zero-duty market access on over 98 per cent of its tariff lines, covering more than 99 per cent of India’s exports by value. Sectors such as textiles, gems and jewellery, leather, engineering goods, pharmaceuticals, medical devices and automobiles are set to benefit from immediate tariff elimination. India, in return, will liberalise tariffs on nearly 78 per cent of its tariff lines for imports from Oman, while protecting sensitive domestic sectors.

Services, Mobility And Investment Provisions

The CEPA places strong emphasis on services and professional mobility. Oman has made commitments in IT, education, health, research, professional services and audio-visual sectors. Improved mobility provisions include higher quotas and longer stay periods for Indian professionals. The agreement also allows 100 per cent foreign direct investment by Indian companies in several Omani services sectors and opens new opportunities for India’s AYUSH and wellness industries.

Exam Oriented Facts

• India–Oman CEPA was signed in December 2025.
• Oman offers zero-duty access on over 98 per cent of its tariff lines.
• Bilateral trade between India and Oman exceeds USD 10 billion.
• The pact includes goods, services, investment and mobility provisions.

Strategic And Economic Significance

The agreement was signed by India’s Commerce and Industry Minister and Oman’s Minister of Commerce, Industry and Investment Promotion. With a large Indian diaspora in Oman and strong business presence, the CEPA is expected to boost exports, strengthen supply chains, create jobs and reinforce Oman’s role as India’s gateway to the Middle East and Africa.