India and Oman have signed the India–Oman Comprehensive Economic Partnership Agreement (CEPA) to enhance trade in goods and services, investment, professional mobility, and regulatory cooperation. This agreement is expected to increase bilateral trade, create job opportunities, strengthen supply chains, and promote deeper economic engagement between the two countries. Trade and commerce have long been crucial aspects of the relationship between India and Oman, with both nations acknowledging the potential for further expansion and diversification in their trade activities.
Bilateral trade between India and Oman during the fiscal year 2024–25 amounted to $10.61 billion, showing growth from $8.94 billion in the previous fiscal year 2023–24. Notably, trade between the two countries from April to October 2025 reached $6.48 billion. Under the CEPA, India will enjoy 100% duty-free market access for its exports to Oman, covering a significant portion of Oman’s tariff lines and trade value. This access will be effective immediately upon the agreement’s enforcement, providing exporters with certainty.
The CEPA will benefit Indian exports to Oman by eliminating duties on various products that previously faced tariffs of up to 5%, amounting to around $3.64 billion. This move is expected to enhance the price competitiveness of Indian goods in the Omani market, particularly in sectors such as engineering goods, pharmaceuticals, agriculture, textiles, and more. The agreement also includes measures to safeguard sensitive sectors, support micro, small, and medium enterprises (MSMEs), and promote export growth across the region.
With an expanded market access to Oman’s import market valued at over $28 billion, Indian exporters are poised to capitalize on streamlined regulatory processes, reduced compliance requirements, and quicker market entry. Simultaneously, India has identified specific tariff lines to be excluded from the agreement to protect domestic industries, maintain manufacturing competitiveness, and uphold the interests of farmers.
