Oman and India have signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat, laying the framework for a significant expansion of trade, investment and services cooperation between the two countries.
The agreement was concluded during Prime Minister Narendra Modi’s official visit to Oman and signed in the presence of His Majesty Sultan Haitham bin Tarik.
The pact was inked by Union Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef.
Under the CEPA, Oman has committed to eliminating customs duties on over 98 per cent of its tariff lines, effectively granting duty-free access to nearly all Indian exports by value. The move is expected to benefit a wide range of Indian sectors, including textiles, leather, footwear, gems and jewellery, engineering goods, plastics, furniture, agricultural products, pharmaceuticals, medical equipment and automobiles.
India has offered reciprocal tariff concessions on close to 78 percent of its tariff lines, covering almost 95 percent of imports from Oman. At the same time, New Delhi has retained safeguards for sensitive sectors by excluding certain products from tariff concessions. These include dairy products, precious metals, jewellery, footwear, chocolates and sports goods, aimed at protecting domestic farmers and small enterprises.
India’s exports to Oman in FY25 were led by petroleum products such as naphtha and petrol, along with calcined alumina, machinery, aircraft, rice, iron and steel products, personal care items and ceramic products. On the import side, India sourced $6.6 billion worth of goods from Oman, with crude oil, liquefied natural gas and fertilisers forming the bulk of shipments. Industrial inputs such as methanol, anhydrous ammonia and petroleum coke continue to play a key role in supporting India’s agriculture, cement, chemicals and power sectors.
The agreement also strengthens services cooperation by facilitating the movement of Indian professionals, including business visitors, contractual service suppliers and intra-corporate transferees. It includes provisions allowing 100 per cent foreign direct investment by Indian companies in key services sectors in Oman.
The India - Oman CEPA marks Oman’s second bilateral trade agreement after its Free Trade Agreement with the United States in 2006. It is also India’s second major trade pact signed in the past six months, following its agreement with the United Kingdom. Business groups in Oman have welcomed the deal, viewing it as a platform for deeper economic integration and long-term commercial collaboration.
Economic engagement between the two sides has gathered momentum in recent years. Bilateral trade crossed the $10 billion mark in FY25, rising to $10.61 billion from $8.95 billion the previous year. Investment links are also deep-rooted, with more than 6,000 India–Oman joint ventures operating in the Sultanate. Indian outward direct investment into Oman stands at $675 million, while Oman’s cumulative FDI equity inflows into India have reached $610.08 million since 2000. - TradeArabia News Service
