India-Oman CEPA Takes Effect, Enhancing Trade Relations
India-Oman CEPA comes into effect; India’s footprint in Middle East set to strengthen, key sectors to benefit
India
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The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman will come into effect on June 1, aiming to boost bilateral trade and economic ties. India will gain duty-free access on 98.08% of tariff lines, significantly benefiting sectors like pharmaceuticals, agriculture, and automobiles.
- 01The CEPA will provide India with 100% duty-free access on 98.08% of tariff lines in Oman, enhancing competitiveness.
- 02Bilateral trade between India and Oman reached $11.18 billion in FY 2025-26, up from $10.61 billion in FY 2024-25.
- 03Indian medicines and vaccines will have duty-free access, boosting the pharmaceutical industry.
- 04The agreement will eliminate the 5% import duty on vehicles, benefiting India's automobile sector.
- 05India has excluded 2,789 tariff lines from tariff concessions to protect domestic industries.
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The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is set to take effect on June 1, marking a significant step in enhancing bilateral economic relations. This agreement will allow Indian goods and services greater access to the Omani market, with India receiving 100% duty-free access on 98.08% of tariff lines, which represent 99.38% of the total trade value. This is expected to enhance the competitiveness of Indian products and significantly boost exports, particularly in sectors like apparel, agriculture, processed foods, and pharmaceuticals. The CEPA will also eliminate the 5% import duty on vehicles, benefiting the automobile sector. Furthermore, India’s services exports to Oman have grown significantly, indicating a strengthening of cooperation in this area. The agreement is a crucial addition to India's trade strategy in the Middle East, complementing existing agreements with other nations and paving the way for future negotiations with the Gulf Cooperation Council (GCC).
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The CEPA will enhance India's export capabilities and strengthen economic ties with Oman, benefiting various sectors.
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