The India-Oman Comprehensive Economic Partnership Agreement (CEPA) holds significance due to its timing amidst disruptions in Gulf trade and Oman’s strategic geography. Oman’s ports like Salalah and Duqm, situated away from the Strait of Hormuz, remain accessible during disruptions, offering alternative trade routes to neighboring countries. With land borders shared with Saudi Arabia, the UAE, and Yemen, Oman’s strategic location allows Indian cargo to reach these nations without relying on the Strait of Hormuz.
Ajay Srivastava, founder of the Global Trade Research Initiative, highlighted Oman’s strategic importance, leading to a surge in India’s trade with the country. Notably, imports from Oman surged from $430 million in April 2025 to almost $1.5 billion in April 2026, primarily driven by increased purchases of crude oil and urea. The India-Oman trade relationship already involves significant cooperation in sectors like hydrocarbons, LNG, fertilizers, and petrochemicals.
The CEPA establishes a more stable framework for investment and trade agreements, reducing uncertainties and promoting long-term contracts. Offering 100% duty-free market access in Oman for 98% of tariff lines covering 99.38% of India’s exports, the agreement significantly enhances trade opportunities. Sectors like iron and steel, textiles, leather, auto components, and industrial equipment, dominated by small businesses, are poised to benefit from increased international orders post the agreement.
