India and Oman have taken a significant step in building a stronger economic partnership with the signing of Comprehensive Economic Partnership Agreement today under the visionary leadership of Prime Minister Shri Narendra Modi. Commerce and Industry Minister Shri Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion H.E. Qais bin Mohammed Al Yousef signed the agreement.
This Comprehensive Economic Partnership Agreement (CEPA) marks an important milestone in India’s engagement with the Gulf region and reflects the shared commitment to deepen bilateral economic integration. Oman is an important strategic partner in the region and is a key gateway for Indian goods and services to the wider Middle East and Africa. Nearly 7 lakh Indian nationals reside in Oman, including Indian merchant families with a presence of over 200–300 years, contributing significantly to Oman’s economy and society. Indian enterprises have built a strong presence in Oman, with over 6,000 Indian establishments operating across sectors. Annual remittances of around USD 2 billion further reflect the depth of economic engagement. Bilateral trade between India and Oman stands at over USD 10 billion, with strong potential for expansion under the CEPA framework.
This is the 2nd Free Trade Agreement signed in the last 6 months after United Kingdom and is a part of strategy to sign trade agreements with developed economies that are not competing with our labour-intensive interests and provide opportunities for Indian businesses.
The CEPA secures unprecedented tariff concessions for India from Oman. Oman has offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India’s exports to Oman. All major labour-intensive sectors including Gems & Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and Automobiles receive full tariff elimination. Out of the above, immediate tariff elimination is being offered on 97.96% Tariff Lines.
India is offering tariff liberalization on 77.79% of its total tariff lines (12556) which covers 94.81% of India’s imports from Oman by value. For the products of export interest to Oman and which are sensitive to India, the offer is mostly a tariff-rate quota (TRQ) based tariff liberalization.
To safeguard its interest, sensitive products have been kept in the exclusion category by India without offering any concessions, especially agricultural products, including dairy, tea, coffee, rubber, and tobacco products; gold and silver bullion, jewellery; other labour-intensive products such as footwear, sports goods; and scrap of many base metals.
The Services sector, a strong driver of India’s economy, will also see wide-ranging benefits. Oman’s substantial global services imports amounting to USD 12.52 billion, with the share of India’s exports in Oman’s global imports basket as 5.31%, indicating significant untapped potential for Indian service providers. The agreement features a comprehensive and forward-looking services package, with Oman extending substantial commitments across a broad spectrum of sectors including Computer Related Services, Business and Professional Services, Audio-visual Services, Research and Development, Education and Health Services. These commitments are expected to unlock significant new opportunities for Indian service providers, promote high-value job creation, and support expanding commercial engagement between the two countries.
A major highlight of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered wide-ranging commitments under Mode 4, including a notable increase in the quota for Intra-Corporate Transferees from 20 per cent to 50 per cent, together with a longer permitted duration of stay for Contractual Service Suppliers—extended from the existing 90 days to two years, with the possibility of a further two-year extension. The agreement also provides for more liberal entry and stay conditions for skilled professionals in key sectors such as accountancy, taxation, architecture, medical and allied services, supporting deeper and more seamless professional engagement.
The CEPA further provides for 100 per cent Foreign Direct Investment by Indian companies in major services sectors in Oman through commercial presence, opening a wide avenue for India’s services industry to expand operations in the region. In addition, both sides have agreed to hold future discussions on social security coordination once Oman’s contributory social security system is implemented, reflecting a forward-looking approach to facilitating labour mobility and worker protection.
A landmark element of the Agreement is Oman’s commitment on Traditional Medicine extended across all modes of supply representing the first such comprehensive commitment made by any country, and creating a significant opportunity for India’s AYUSH and wellness sectors to showcase its strength in the Gulf region.
Apart from the above, provisions in CEPA also address non-tariff barriers persisting despite tariff concessions, limiting real market access.
This is the first bilateral agreement that Oman has signed with any country since United States of America in 2006.
Union Minister for Commerce and Industry, Shri Piyush Goyal, expressed profound gratitude to Prime Minister Shri Narendra Modi for his visionary guidance, stating: “The India-Oman CEPA strengthens the historical strong ties of India with Oman and signifies an ambitious and balanced economic framework that significantly enhances opportunities for Indian exporters and professionals. It unlocks nearly universal duty free access for Indian goods in the Omani market, expands services commitments across key high growth sectors, and ensures greater mobility for Indian professionals. The agreement reinforces India’s commitment to inclusive growth benefiting farmers, artisans, workers, MSMEs while safeguarding core national interests.”
The CEPA is expected to significantly boost bilateral trade, generate employment, expand exports, strengthen supply chains, and open new avenues for deeper, long-term economic engagement between India and Oman.
