India-Oman Free Trade Pact Kicks In, Opens Duty-Free Access For 99% Exports

(MENAFN- Live Mint) New Delhi: The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on Monday, granting duty-free access to most of India's exports to the Gulf country and marking a major milestone in bilateral economic ties.

The agreement, signed in Muscat on 18 December 2025, took effect after both countries completed their internal procedures. India's commerce and industry minister Piyush Goyal and Oman's ambassador to India Issa Saleh Al Shibani marked the occasion by flagging off the first consignments availing preferential tariff benefits under the pact, including agriculture and gems and jewellery exports from Mumbai, Kolkata and Chennai.

The agreement provides duty-free access for 99.38% of India's exports by value on 98.08% of Oman's tariff lines, the commerce ministry said in a statement. Before the CEPA, only 15.33% of Indian exports entered Oman duty-free under the Most Favoured Nation (MFN) regime.

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“The operationalization of India-Oman CEPA marks a strategic shift from trasactional trade to deeper economic integration. By securing zero-duty access on almost all tariffs lines, this agreement offers greater market access, services sector mobility, while simultaneously offering opportunities in logistics manufacturing and investment linkages,” said Ram Singh, professor and head, Indian Institute of Foreign Trade (IIFT), New Delhi.

Emerging gateway

He added that Oman is emerging as a key gateway for Indian goods to the GCC, Africa, and wider West Asia.

“Oman and India can strengthen supply chain resilience and achieve long-term complementarity in areas such as polysilicon for solar cells, fertilizers and defence cooperation to tap the unexplored potential serving interests of both the economies under this CEPA,” Singh added.

Bilateral trade between India and Oman rose to $11.18 billion in FY26 from $10.61 billion in FY25. Oman is India's second-largest trading partner in the Gulf region and is viewed as a gateway to the wider GCC and East African markets through its logistics and port infrastructure.

Calling the agreement a landmark step, Goyal said, "The India–Oman CEPA marks a defining milestone in India's engagement with Oman and reflects Prime Minister Shri Narendra Modi's vision of forging trade partnerships that deliver gains for farmers, fishermen, youth, women, entrepreneurs and MSMEs."

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"With 99.38% of India's exports receiving duty-free access, the Agreement unlocks new opportunities for our exporters and professionals gain opportunities. Oman is our trusted partner, a bridge for our people and a gateway to the Gulf and East Africa," he said in the statement.

The minister further said the pact would support job creation, investment and integration into regional and global value chains by providing significant benefits to labour-intensive sectors.

“The engineering being one of the key exports to Oman, the sector is set to gain significantly from the trade pact. In 2025-26, India's engineering exports to Oman increased by 9.1% to reach $886 million. Industrial machinery, electrical equipment, auto parts, metals, and non-ferrous metals are among the key engineering product segments that would benefit from the FTA,” Pankaj Chadha, chairman of EEPC India, said.

Amid reshaping trade patterns

Commerce secretary Rajesh Agrawal said the agreement comes at a time when global trade patterns are being reshaped by supply-chain diversification and new economic corridors.

"The India-Oman CEPA brings new energy to our bilateral economic engagement, anchored in complementary strengths, deeper regulatory cooperation and a shared commitment to growth," Agrawal said.

The ministry said sectors expected to benefit include agriculture and processed foods, marine products, gems and jewellery, pharmaceuticals, electronics, engineering goods, textiles, footwear and automobiles.

In services, Oman has undertaken commitments across 127 sub-sectors, covering computer and related services, professional services, healthcare, education, financial services, telecommunications, construction and tourism. The ministry described it as the most comprehensive services offer extended by any GCC country to India.

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The agreement also provides binding commitments for professionals in fields such as accounting, engineering, medicine, information technology, education and construction. Business visitors will be allowed to stay in Oman for up to 90 days, independent professionals for up to 180 days and intra-corporate transferees for up to four years.

On trade facilitation, Oman will mandatorily accept certificates issued by India's Export Inspection Council (EIC), while India's NPOP (national programme for organic production) organic certification and halal certification systems will also be recognised.

India has, however, retained protections for sensitive sectors. Dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and several key agricultural products remain outside market access commitments.

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