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India Oman CEPA takes effect June 1, giving India near complete duty free access to Omans market, boosting exports while India shields sensitive farm and industrial sectors
The two countries are expected to formally announce the implementation of the pact on Monday, June 1
India’s Comprehensive Economic Partnership Agreement (CEPA) with Oman will come into force from June 1, giving Indian exporters near-complete duty-free access to the Gulf nation’s market and marking a major step in bilateral trade ties.
The two countries are expected to formally announce the implementation of the pact on Monday. It will be the fifth free trade agreement implemented under the Narendra Modi government after deals with Mauritius, the UAE, Australia and the European Free Trade Association (EFTA).
India-Oman Trade Agreement
Under the agreement, India will receive 100% duty-free market access for exports covering 98.08% of Oman’s tariff lines and 99.38% of the trade value. Products worth about $3.64 billion that currently attract import duties of up to 5% in Oman will now enter the market duty-free from the first day of the pact.
The agreement is expected to boost exports from sectors including textiles, agriculture, processed food, engineering goods, chemicals, pharmaceuticals, transport equipment, plastics, marine products, gems and jewellery, and machinery. Indian exporters are also expected to gain from easier market access and improved price competitiveness.
Bilateral trade between India and Oman rose to $11.18 billion in 2025-26 from $10.61 billion a year earlier. India’s exports stood at $4.02 billion, while imports from Oman were valued at $7.16 billion. Services trade has also grown steadily, with India’s services exports to Oman increasing from $397 million in 2020 to $665 million in 2024.
While Oman has opened most of its market under the pact, India has kept several sensitive sectors outside the tariff concession list to protect domestic industries and farmers. These include dairy products, edible oils, oilseeds, fruits, vegetables, cereals, spices, tea, coffee, rubber, leather, footwear and certain petroleum products.
The CEPA goes beyond a traditional free trade agreement and covers areas such as trade in goods and services, investments, intellectual property rights, customs procedures and dispute settlement mechanisms. Officials expect the pact to strengthen India’s economic presence in the Gulf region and create new opportunities for businesses in both countries.
Delhi, India, India
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