The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on Monday, marking a significant milestone in bilateral trade ties between the two countries.
According to Ajay Bhadoo, Additional Secretary in the Commerce Ministry and Chief Negotiator of the India-Oman CEPA, the agreement, signed in December 2025, will make nearly 99% of bilateral trade between India and Oman duty-free from day one.
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The pact is expected to provide a major boost to Indian exports across sectors including minerals, chemicals, base metals, machinery, textiles, plastics and rubber products, as well as marine products.
However, both countries have kept several sensitive sectors outside the agreement. Bhadoo said around 2,789 tariff lines have been excluded from the trade deal. Products such as meat, dairy items, jewellery, precious metals and petroleum products do not fall under the pact's tariff concessions.
The agreement also adopts a phased approach for select food and agricultural products, with duties set to be eliminated gradually over a defined period.
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) has come into force at a time when disruptions around the Strait of Hormuz, triggered by the ongoing US-Iran conflict, have heightened concerns over global energy supplies. The waterway handles nearly 20% of global oil consumption and a quarter of seaborne oil trade, making it a critical energy corridor.
Announcing the rollout, Union Commerce and Industry Minister Piyush Goyal said the pact would open new opportunities for students, artisans, women, farmers, fishermen and MSMEs by expanding market access, boosting exports, attracting investment and supporting job creation.
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The agreement is strategically significant as much of Oman's coastline lies outside the Strait of Hormuz, offering India an alternative trade gateway in the Gulf. Under the CEPA, Oman will provide zero-duty access on 98.08% of tariff lines, covering 99.38% of Indian exports.
Key beneficiaries include textiles, pharmaceuticals, engineering goods, automobiles and agricultural products. Indian exports to Oman stood at about $3.64 billion in FY26.
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