The India-Oman CEPA was signed on 18 December, 2025, in Muscat, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said.

For New Delhi, the trade pact offers opportunities galore as Oman could be a gateway to the Middle East and North Africa (MENA) region and Eastern Africa. Oman’s strategic logistics hubs at Sohar, Duqm, and Salalah provide Indian exporters enhanced access not only to Oman but also to the wider Gulf Cooperation Council (GCC) and East African markets. Oman is India's second-largest trading partner in the Gulf region.

The trade agreement reinforces India’s growing economic and trade footprint and strategic presence across GCC economies, encompassing goods, services, professional mobility, regulatory cooperation, non-tariff barrier safeguards, and cooperation chapters.

The bilateral trade between India and Oman reached US$11.18 billion in FY2025-26, up from US$10.61 billion in FY 2024-25. 

Duty-Free Access

With 99.38% of India’s exports (by value) receiving duty-free access, the agreement unlocks new opportunities for Indian exporters and professionals, providing a fillip to Micro, Small, and Medium Enterprises (MSMEs) and labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, marine products, engineering goods, processed foods, and pharmaceuticals.

As the duty-free access covers 98.08% of Oman’s tariff lines, the trade pact is one of the most comprehensive market access outcomes secured by India in the Gulf region. All zero-duty concessions come into effect immediately, providing certainty and competitiveness to Indian exporters. Earlier, under the most favoured nation regime, only 15.33% of India’s exports entered Oman duty-free. With CEPA, Indian exporters gain substantial price competitiveness in Oman’s nearly US$28 billion import market.

Indian exporters now compete on equal or better terms than suppliers from countries without preferential trade arrangements with Oman.

Key Export Sectors

India has offered tariff liberalisation on 77.79% of tariff lines, covering 94.81% of imports from Oman by value, while maintaining strong safeguards for sensitive sectors. Products protected under the exclusion list include dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices, and key agricultural products. Tariff Rate Quotas and Minimum Import Price mechanisms have also been incorporated for selected sensitive industrial and agricultural products to safeguard domestic industry and manufacturing competitiveness.

The calibrated structure of concessions balances India’s export ambitions with food security concerns, farmers' welfare and rural livelihood protection. Indian marine exporters gain improved competitiveness, faster clearances, and stronger integration into Gulf-region food supply chains.

India is Oman's second-largest agricultural supplier, with a 17.8% share in Omani imports.

Duty elimination strengthens India’s competitiveness in products such as honey, condiments, cashews, basmati rice, butter, and sweet biscuits. India currently accounts for over 94% of Oman’s bovine meat imports and more than 98% of fresh egg imports, making Oman one of India’s most important agricultural export destinations in the Gulf region.

Key export items identified include basmati and parboiled rice, cashew kernels, onions, potatoes, soybean meal, sweet biscuits, butter, frozen boneless bovine meat, and fertilised eggs, which represent a broad and growing portfolio for farmers.

The agreement is expected to benefit farmers, agri-processors, and food exporters across states, including Uttar Pradesh, Punjab, Haryana, Maharashtra, Gujarat, Andhra Pradesh, and Tamil Nadu.

All marine products, including shrimp, fish and cuttlefish, receive immediate duty-free access, replacing previous import duties of up to 5%. Oman’s marine imports stood at US$35.3 million in 2025, while India’s exports accounted for only US$10 million, indicating substantial untapped potential.

The CEPA is expected to significantly expand exports from major coastal states, including Andhra Pradesh, Kerala, Tamil Nadu, and Gujarat.

Competitive Edge For Gems And Jewellery Exporters

Indian gems and jewellery exporters also gain a structural price advantage over competitors from Italy, Turkey, Thailand, and China. Oman's total gems and jewellery import market is US$1.07 billion annually. India's exports to Oman in this sector stood at US$25.78 million in 2025, comprising US$18.48 million in polished natural diamonds and US$6.67 million in gold jewellery. 

It is projected that exports could reach US$150 million within three years. Clusters in Surat (diamonds), Jaipur (gemstones), Mumbai, Kolkata, and Chennai could potentially leverage this opportunity. 

Pharmaceutical Market

Oman's pharmaceutical market was valued at US$302.84 million in 2025. It is projected to reach US$473.71 million by 2031 (CAGR of 6.6%). Oman’s pharmaceutical market is projected to grow substantially over the coming years, creating major opportunities for Indian exporters.

Beyond agriculture, pharmaceutical, and marine sectors, all engineering products receive zero-duty market access, replacing MFN tariffs of up to 5%. Key sectors that would benefit include machinery, automobiles, electrical equipment, iron and steel, and industrial machinery. 

Oman is an important destination for India's engineering exports, which reached US$875.83 million in FY 2025-26, covering machinery, electrical equipment, automobiles, iron and steel, and non-ferrous metals. All engineering products receive zero-duty market access, replacing earlier MFN tariffs of 0%–5%. Engineering exports to Oman are projected to rise to US$1.3–1.6 billion by 2030. Key gains are expected in iron and steel for infrastructure projects, electric and industrial machinery, motor vehicles (5% tariff removed), and copper products.

Bilateral services trade stood at US$863 million in 2024, with India running a surplus of US$447 million. Oman's global services imports amounted to US$12.52 billion, while India accounted for only 5.31% of these imports, indicating significant untapped potential. 

Under the CEPA, Oman has undertaken broad and deep market access commitments across 127 services sub-sectors. These commitments represent GATS/Best FTA-plus commitments, making it the most comprehensive services offer made by any GCC country to India.  

With the operationalisation of CEPA, bilateral trade is expected to witness substantial expansion in the coming years through enhanced market access, cooperation, investment flows and deepening economic synergies.

(The writer is a commentator on geopolitics. Views expressed are personal.)