India-Oman Trade Agreement Set to Enhance Bilateral Relations from June 1
India, Oman trade pact to come into force from June 1; Check what's inside
The Economic Times
Image: The Economic Times
The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman will take effect on June 1, promoting duty-free access for Indian exports and enhancing bilateral trade, which reached USD 11.18 billion in 2025-26. This pact marks India's fifth free trade agreement under the Modi administration, aiming to strengthen economic ties with the Gulf region.
- 01The CEPA will provide 100% duty-free access for Indian exports to Oman, covering 98.08% of Oman’s tariff lines.
- 02Bilateral trade between India and Oman rose to USD 11.18 billion in 2025-26, with India's exports valued at USD 4.02 billion.
- 03India has excluded 2,789 tariff lines from concessions to protect sensitive sectors like agriculture and manufacturing.
- 04Oman will allow zero-duty access for Indian agricultural products, while India will grant concessions on Omani dates and other traditional goods.
- 05The CEPA is part of India's strategy to deepen trade ties with the Gulf Cooperation Council, following similar agreements with the UAE and upcoming talks with Qatar.
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The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is set to come into effect on June 1, enhancing trade relations significantly. This agreement allows Indian exports to enter Oman duty-free, covering 98.08% of Oman’s tariff lines, which represents a substantial increase from the current 15.33% under the Most Favoured Nation regime. In the fiscal year 2025-26, bilateral trade reached USD 11.18 billion, with India exporting goods worth USD 4.02 billion. Key sectors benefiting from the CEPA include textiles, agricultural products, and machinery, while Oman will also grant zero-duty access to Indian industrial segments such as iron and steel. India has safeguarded sensitive sectors by excluding 2,789 tariff lines from the agreement. The pact is a strategic move for India to strengthen its presence in the Gulf Cooperation Council region, following similar agreements with the UAE and ongoing negotiations with Qatar. This CEPA is significant as it is the first bilateral trade agreement Oman has signed since its 2006 deal with the United States.
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The CEPA is expected to enhance market access for Indian exporters, leading to increased exports and potentially lower prices for consumers due to reduced tariffs.
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