Oman Allows 50% Indian Workforce Under CEPA Framework

India has secured a major employment concession for its workforce in Oman, with the Gulf nation permitting companies to employ up to 50% Indian nationals, a sharp rise from the earlier cap of 20%. The decision forms part of the broader Comprehensive Economic Partnership Agreement (CEPA) between the two countries and is expected to significantly benefit Indian workers, professionals, and enterprises operating in Oman.

Key Employment Concession for Indian Workers

Government officials said the revised cap ensures that Indian companies setting up operations in Oman are not compelled to recruit workers from third countries. The provision provides Indian firms greater flexibility in workforce planning while safeguarding opportunities for Indian nationals across skill levels. Importantly, the agreement includes a “standstill” clause, meaning the 50% ceiling cannot be reduced in the future, offering long-term certainty to Indian businesses and employees.

Safeguards and Parity with Saarc Nations

The CEPA also includes a parity clause, under which any labour-related concession granted by Oman to Saarc countries will automatically extend to India. While Oman maintains requirements for hiring local citizens, officials clarified that restrictions are stricter only in select senior or sensitive job categories. For most sectors, particularly goods and services, the new framework is expected to ease labour mobility and reduce compliance hurdles for Indian firms.

Boost to Services Trade and Professional Mobility

Services trade remains a major area of interest for India in the Gulf region. Oman currently hosts around seven lakh Indian nationals, who remit more than $2 billion annually to India. Under the agreement, quotas for Intra-Corporate Transferees have been expanded, with visas now valid for up to four years. Contractual service suppliers will also receive four-year visas, while independent professionals can stay for up to 180 days. Business visitors will be eligible for visas of up to 90 days.

What to Note for Exams?

• Oman has raised the Indian workforce cap from 20% to 50%.
• The provision is protected by a CEPA “standstill” clause.
• Parity applies if Oman offers concessions to Saarc nations.
• India has around seven lakh workers currently employed in Oman.

Economic Impact and Strategic Significance

The move is expected to strengthen India’s footprint in the Gulf labour market while supporting remittance flows and overseas employment generation. By improving predictability for Indian professionals and companies, the agreement reinforces Oman’s role as a key partner in India’s West Asia economic strategy and enhances bilateral cooperation in trade, services, and workforce mobility.