India’s merchandise exports to Oman are set to increase by 50% in the next three years following the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries. The agreement targets boosting exports from around $4.06 billion to over $6 billion initially, with a long-term goal of reaching $10 billion.
Under the CEPA, Oman has granted zero-duty access on 98.08% of its tariff lines, encompassing 99.38% of India’s exports to Oman. Key sectors like Gems & Jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles will benefit from full tariff elimination.
India, on the other hand, is offering tariff liberalization on 77.79% of its total tariff lines, covering 94.81% of its imports from Oman by value. Sensitive products for Oman will see a tariff-rate quota (TRQ) based tariff liberalization, while certain products like agricultural goods, gold and silver bullion, jewellery, footwear, sports goods, and scrap of base metals will remain excluded from concessions.
To protect its interests, India has excluded sensitive products like agricultural items, gold and silver bullion, jewellery, footwear, sports goods, and scrap of base metals from any concessions. The Finance Ministry has issued a notification on duty concessions for Omani goods under the trade pact, effective from June 1.
India and Oman inked the CEPA in December last year during Prime Minister Narendra Modi’s visit to Muscat. The services sector, a significant contributor to India’s economy, is expected to benefit greatly from the agreement. Oman’s substantial global services imports of $12.52 billion present a vast opportunity for Indian service providers, with India’s exports accounting for 5.31% of Oman’s global imports.
The CEPA includes a comprehensive services package, with Oman making substantial commitments across various sectors like Computer Related Services, Business and Professional Services, Audio-visual Services, Research and Development, Education, and Health Services. These commitments are anticipated to create new avenues for Indian service providers, boost job creation, and enhance commercial ties between the two nations.
A key aspect of the CEPA is the improved mobility framework for Indian professionals. Oman has expanded commitments under Mode 4, increasing the quota for Intra-Corporate Transferees from 20% to 50% and extending the permitted stay duration for Contractual Service Suppliers from 90 days to two years, with a potential two-year extension. The agreement also facilitates easier entry and stay conditions for skilled professionals in sectors like accountancy, taxation, architecture, and medical services, fostering deeper professional engagement.
India has recently signed similar agreements with the UK in July 2025 and New Zealand in April 2026, and is in talks for a free trade agreement (FTA) with the European Union. These efforts aim to diversify trade amidst global economic shifts triggered by US tariff changes.
