India Gains Access to Oman's Key Export Markets through Strategic Trade Agreement

India-Oman Comprehensive Economic Partnership Agreement Comes into Force

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) took effect on Sunday, marking a significant milestone in the bilateral trade relationship between the two nations. As a result, Indian exporters now enjoy duty-free access to 98.08 percent of Oman's tariff lines, covering 99.38 percent of India's export value to the Gulf nation.

The CEPA is expected to expand market access for Indian sectors, including engineering goods, pharmaceuticals, agriculture, and processed food products, marine products, textiles, chemicals, electronics, plastics, and gems and jewellery. Indian food and agricultural products, such as natural honey, cashew, boneless meat, bakery products, chocolates and sugar confectionery, mineral water, cheese, curd, milk, cream, butter, and frozen fish, will also receive immediate duty-free access in Oman.

The agreement is expected to improve competitiveness for Indian exports of animal and vegetable fats and oils, which currently face import duties ranging from 5 percent to 100 percent in Oman. Additionally, India's egg exports are expected to benefit from the removal of import duties under the CEPA framework.

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The CEPA goes beyond merchandise trade, including commitments on services, mobility, and investment. Oman has agreed to provide enhanced mobility access for Indian professionals through temporary stay provisions covering intra-corporate transferees, contractual service suppliers, business visitors, and independent professionals. The pact further liberalises entry and stay norms for professionals in sectors such as accountancy, taxation, architecture, and healthcare.

In a key investment-related commitment, Oman has agreed to allow 100 percent foreign direct investment access for Indian companies in identified services sectors under the agreement. The CEPA also includes Oman's first commitment on traditional medicine in any trade agreement signed by the country.

For pharmaceutical exports, the agreement provides faster marketing authorisation pathways for products already approved by regulators, including the US Food and Drug Administration (USFDA), European Medicines Agency (EMA), and the UK Medicines and Healthcare Products Regulatory Agency (MHRA).

In return, India has agreed to provide duty-free access for up to 2,000 tonnes of Omani dates annually. Tariff concessions have also been extended to products such as Gum Arabic, frankincense, petrochemicals, and marble blocks.

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The CEPA comes amid a broader push by India to deepen trade integration with Gulf economies and diversify export markets through bilateral trade agreements. India has signed or operationalised trade agreements in recent years with the United Arab Emirates, Australia, and the European Free Trade Association (EFTA), while negotiations continue with the United Kingdom and the European Union.

India and Oman have maintained longstanding energy and trade ties, with crude oil, liquefied natural gas, and fertilisers forming a major share of imports from Oman. According to official trade data, India imported goods worth $7.2 billion from Oman in FY26, with the import basket including crude oil worth $1.6 billion, liquefied natural gas worth $1.2 billion, and fertilisers worth $843 million.

Officials expect the implementation of the CEPA to increase bilateral trade flows, improve supply chain integration, and expand cooperation in services and investment between the two countries. The agreement takes effect at a time when Gulf economies are increasingly positioning themselves as investment and logistics hubs, while India continues to seek preferential market access for labour-intensive exports and professional services.