India–Oman CEPA Signed With Major Tariff And Services Gains

India and Oman have signed a landmark Comprehensive Economic Partnership Agreement (CEPA), marking a major expansion of bilateral trade and investment ties. The free trade pact aims to significantly boost market access, liberalise services, and strengthen mobility for skilled professionals. Signed in Muscat in the presence of Prime Minister Narendra Modi, the agreement positions Oman as a key economic partner for India in the Gulf region.

Duty-Free Access For Indian Exports

Under the CEPA, Oman has granted zero-duty access on over 98 percent of its tariff lines, covering 99.38 percent of India’s exports by value. Immediate tariff elimination applies to nearly 98 percent of product categories. Major labour-intensive sectors such as textiles, gems and jewellery, leather goods, footwear, engineering products, pharmaceuticals, medical devices and automobiles will benefit. Currently, these exports face import duties of around five percent in Oman, which will now be fully removed.

India’s Tariff Concessions To Oman

India has agreed to liberalise tariffs on 77.79 percent of its total tariff lines, covering nearly 95 percent of imports from Oman by value. Products of export interest to Oman, including dates, marbles and petrochemical products, will receive concessions largely through tariff-rate quotas. To protect sensitive domestic sectors, India has excluded items such as dairy products, tea, coffee, rubber, tobacco, gold and silver bullion, jewellery, footwear, sports goods and certain metal scraps from tariff reductions.

Services, Investment And Professional Mobility

The agreement includes wide-ranging commitments in services, with Oman opening sectors such as computer-related services, professional and business services, education, health, research and development, and audio-visual services. Indian companies will be allowed 100 percent foreign direct investment in major service sectors through commercial presence. A key highlight is the enhanced mobility framework for Indian professionals. Oman has expanded commitments under Mode 4, increasing the quota for intra-corporate transferees from 20 percent to 50 percent and extending the stay for contractual service suppliers from 90 days to two years, with an option for further extension.

What to Note for Exams?

• India–Oman CEPA grants zero-duty access to over 98% of India’s exports.
• Immediate tariff elimination applies to nearly 98% of Omani tariff lines.
• Oman allows 100% FDI by Indian firms in major services sectors.
• Professional mobility provisions include longer stay and higher quotas.

Trade Impact And Strategic Significance

Bilateral trade between India and Oman stood at about $10.5 billion in 2024–25, with Oman ranking as India’s third-largest export destination among GCC countries. The CEPA is India’s second such agreement with a Gulf nation after the UAE and Oman’s first bilateral trade pact since 2006. The agreement strengthens India’s trade diversification strategy amid global tariff pressures and reinforces its long-term economic engagement with the Gulf region.