India has achieved a significant milestone by becoming the second country, following the US, to finalize a Comprehensive Economic Partnership Agreement (CEPA) with Oman. The agreement, which recently took effect, signifies a crucial development in the economic ties between the two nations, ushering in a new era of strategic trade and investment collaboration. Commerce and Industry Minister Piyush Goyal emphasized that the CEPA represents a pivotal moment in India’s relationship with Oman, aligning with Prime Minister Narendra Modi’s vision of establishing trade alliances that benefit various sectors including farmers, fishermen, youth, women, entrepreneurs, and MSMEs.
The CEPA is expected to have a positive impact in the Gulf region, offering Indian exporters duty-free access for 99.38% of their products and creating fresh avenues for trade and professional opportunities. Minister Goyal highlighted Oman’s role as a trusted partner, acting as a conduit for people and a gateway to the Gulf and East Africa. He expressed confidence that the agreement will elevate India’s prospects and enhance its integration into regional and global value chains, particularly benefiting labor-intensive industries, fostering job creation, attracting investments, and enabling Indian businesses to compete effectively with suppliers from nations enjoying preferential market access.
Signed on December 18, 2025, in Muscat in the presence of PM Modi and Oman Sultan Haitham bin Tarik Al Said, the India-Oman CEPA officially came into force on June 1, 2026, following internal procedures from both sides. Bilateral trade between India and Oman saw a positive trajectory, reaching $11.18 billion in FY 2025-26, up from $10.61 billion in FY 2024-25. Commerce Secretary Rajesh Agrawal noted that amid global shifts in trade dynamics such as supply-chain diversification and the emergence of new economic corridors, the CEPA positions India and Oman to capitalize on these changes.
The India-Oman CEPA injects fresh vitality into the economic ties between the two countries, emphasizing mutual strengths, enhanced regulatory collaboration, and a shared dedication to growth. Indian exporters now have a level playing field or even better advantages compared to suppliers from nations lacking preferential trade agreements with Oman. Oman’s strategic logistics centers in Sohar, Duqm, and Salalah offer Indian exporters improved access not only to Oman but also to the broader GCC and East African markets.
