India–Oman trade pact comes into effect

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force from 1 June, the Union Ministry of Commerce & Industry said.

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The India-Oman CEPA was signed on 18 December, 2025.

The Agreement was operationalized in the presence of Union Minister of Commerce and Industry Minister Piyush Goyal and H.E. Issa Saleh Al Shibani, Ambassador of Oman to India.

To mark the entry into force the first consignments availing preferential tariff benefits under the Agreement included agriculture and gems and jewellery exports from Mumbai, Kolkata and Chennai were flagged off.

Oman is India’s second-largest trading partner in the Gulf region and serves as a strategic gateway to the wider GCC market through its advanced port infrastructure. Bilateral trade between India and Oman reached USD 11.18 billion in FY 2025-26, registering a positive trend from USD 10.61 billion in FY 2024-25, according to an official statement.

“Agreement will be a force multiplier in the Gulf region. With 99.38 per cent of India’s exports receiving duty-free access, the Agreement unlocks new opportunities for our exporters and professionals gain opportunities,” Goyal said.

“At a time when global trade patterns are being reconfigured by supply-chain diversification, shifting production networks and the emergence of new economic corridors, the CEPA positions India and Oman to leverage these structural changes,” Commerce Secretary Rajesh Agrawal said.

CEPA provides duty-free access for 99.38 per cent of India’s exports to Oman by value, covering 98.08 per cent of Oman’s tariff lines, making it one of the most comprehensive market access outcomes secured by India in the Gulf region.

Earlier, under the MFN regime, only 15.33 per cebt of India’s exports entered Oman duty-free. With CEPA, Indian exporters gain substantial price competitiveness in Oman’s nearly USD 28 billion import market.

The agreement is expected to significantly boost MSMEs, manufacturing and employment by enhancing competitiveness in labor-intensive sectors such as gems & jewellery, textiles, leather, footwear, marine products, engineering goods, processed foods and pharmaceuticals.

With the operationalization of the 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 government said.

For more details read here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2267513&reg=3&lang=1

 

 

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