India and Oman Sign Comprehensive Economic Partnership Agreement (CEPA)

In a historic move to strengthen bilateral ties and economic cooperation, India and Oman have signed the Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025. This landmark agreement, signed under the visionary leadership of Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik, marks a significant milestone in India’s strategic engagement with the Gulf region. The agreement was formalized by India’s Commerce and Industry Minister Shri Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion H.E. Qais bin Mohammed Al Yousef.

Key Highlights of the India-Oman CEPA

Unprecedented Market Access for Indian Goods 

The CEPA provides Indian exporters with zero-duty access on 98.08% of Oman’s tariff lines, covering 99.38% of India’s exports by value. This is a game-changer for India’s labour-intensive sectors, including textiles, leather, footwear, gems and jewellery, engineering products, plastics, furniture, agricultural products, pharmaceuticals, medical devices, and automobiles. These tariff concessions are expected to generate employment, empower artisans, women-led enterprises, and MSMEs, and significantly boost India’s export potential.

Ambitious Services Commitments 

Oman has extended commitments across 127 sub-sectors, including Computer Related Services, Business Services, Professional Services, Audio-Visual Services, Research and Development, Education, and Health Services. This comprehensive package is expected to unlock high-value opportunities for Indian service providers, promote job creation, and deepen commercial engagement between the two nations.

Enhanced Mobility for Indian Professionals 

For the first time, Oman has offered commitments across key Mode 4 categories, including Intra-Corporate Transferees, Contractual Service Suppliers, Business Visitors, and Independent Professionals. Notably, the quota for Intra-Corporate Transferees has been increased from 20% to 50%, and the permitted duration of stay for Contractual Service Suppliers has been extended from 90 days to two years, with the possibility of a further two-year extension. This liberalized framework will facilitate greater mobility and professional engagement for Indian skilled workers in sectors such as accountancy, taxation, architecture, medical, and allied services.

100% Foreign Direct Investment (FDI) for Indian Companies 

The agreement allows Indian companies to invest 100% in major services sectors in Oman through commercial presence. This provision opens up significant opportunities for India’s services industry to expand operations in the Gulf region.

Commitment to Traditional Medicine 

A groundbreaking aspect of the CEPA is Oman’s commitment to Traditional Medicine across all modes of supply. This is the first such comprehensive commitment made by any country, creating significant opportunities for India’s AYUSH and wellness sectors to showcase their strengths in the Gulf region.

Facilitating Trade and Reducing Barriers 

The CEPA addresses non-tariff barriers that have previously limited market access despite tariff concessions. It includes provisions for fast-tracking marketing authorizations for pharmaceutical products approved by USFDA, EMA, and UKMHRA, and acceptance of GMP inspection documents, reducing time and costs for Indian pharma exporters. Additionally, mutual recognition arrangements for Halal certification and India’s NPOP certification for organic products have been established, enhancing cooperation in standards and conformity assessment.

Strengthening Bilateral Relations 

Oman is a key strategic partner for India in the Gulf region, serving as a gateway for Indian goods and services to the Middle East and Africa. With nearly 7 lakh Indian nationals residing in Oman and over 6,000 Indian establishments operating across various sectors, the economic ties between the two nations are already robust. Annual remittances of approximately USD 2 billion further highlight the depth of this relationship. The CEPA is expected to further boost bilateral trade, which currently stands at over USD 10 billion, and unlock new opportunities for economic growth.

A Step Towards Inclusive Growth 

The India-Oman CEPA is designed to benefit farmers, artisans, workers, and MSMEs while safeguarding India’s core national interests. Sensitive products such as agricultural goods (dairy, tea, coffee, rubber, tobacco), gold and silver bullion, jewellery, and other labour-intensive products have been kept in the exclusion category to protect domestic industries.

A Strategic Move in India’s Trade Policy 

This agreement is the second Free Trade Agreement (FTA) signed by India in the last six months, following the FTA with the United Kingdom. It aligns with India’s strategy to forge trade agreements with developed economies that complement its labour-intensive sectors and provide new opportunities for Indian businesses.

Looking Ahead

The India-Oman CEPA is expected to significantly boost bilateral trade, generate employment, strengthen supply chains, and open new avenues for long-term economic engagement. It reflects the shared commitment of both nations to deepen their economic integration and build a stronger partnership.

Union Minister Shri Piyush Goyal expressed his gratitude to Prime Minister Shri Narendra Modi for his visionary leadership, 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.” As India and Oman embark on this new journey of economic collaboration, the CEPA is poised to create a win-win scenario for both nations, fostering growth, innovation, and prosperity in the years to come.

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Source: Ministry of Commerce & Industry

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