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Union Commerce and Industry Minister Piyush Goyal said the India-Oman Comprehensive Economic Partnership Agreement (CEPA) would significantly expand market access for Indian goods and services, support employment generation and strengthen economic ties between the two countries.
The Agreement, which took effect on June 1, is expected to provide export opportunities across labour-intensive sectors ranging from textiles and leather to pharmaceuticals, engineering goods and automobiles.
Writing in an opinion article in The Indian Express, Goyal said the agreement represented a “defining milestone” in Prime Minister Narendra Modi’s vision of creating global opportunities for Indian workers, farmers, entrepreneurs and small businesses.
“The agreement with Oman is a reminder that trade is a powerful instrument of growth, job creation and shared prosperity,” Goyal wrote.
The CEPA was signed on December, 2025, by Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik of Oman.
Near-complete market access for Indian exports
According to the Commerce Ministry, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to the Gulf nation.
The agreement immediately eliminates tariffs on 97.96 per cent of tariff lines and provides comprehensive market access across major labour-intensive sectors including textiles, apparel, leather, footwear, gems and jewellery, engineering products, plastics, furniture, agricultural products, pharmaceuticals, medical devices and automobiles.
Goyal noted that the pact marks a dramatic improvement from the previous regime under which only 15.3 per cent of Indian exports entered Oman at zero duty.
Goods currently facing a 5 per cent import duty in Oman, worth around $3.6 billion in exports, are expected to become more competitive after the agreement takes effect.
Bilateral trade between India and Oman currently exceeds $10 billion, with policymakers in both countries expecting substantial growth over the coming years.
Major boost for MSMEs and manufacturing
The Commerce Minister said sectors dominated by micro, small and medium enterprises (MSMEs) stand to benefit significantly from improved market access and lower trade barriers.
Industries including iron and steel, textiles, leather goods, auto components and industrial equipment are expected to gain from stronger export competitiveness and increased international demand.
Higher exports could strengthen manufacturing clusters in Tirupur, Surat, Ludhiana, Panipat, Coimbatore, Karur, Bhadohi, Moradabad, Jaipur and Ahmedabad, while also benefiting artisans and traditional weaving communities.
The gems and jewellery sector is expected to be among the biggest beneficiaries. Industry estimates cited by Goyal suggest exports to Oman could increase by as much as $150 million over the next three years following the removal of tariff barriers.
Safeguards for sensitive sectors
While expanding market access, India has sought to protect several sensitive domestic sectors.
Under the agreement, India has offered tariff liberalisation on 77.79 per cent of its tariff lines, covering 94.81 per cent of imports from Oman by value.
However, sensitive products have been excluded from concessions. These include major agricultural products such as dairy, tea, coffee, rubber and tobacco, along with gold and silver bullion, jewellery, footwear, sports goods and various categories of metal scrap.
Goyal said India had not offered tariff concessions on products such as wheat, rice, maize, millets, fruits, vegetables, edible oils and several other farm products in order to safeguard domestic farmers.
At the same time, he argued that Indian exporters would gain a competitive advantage in products such as butter, honey, eggs, confectionery items and sweet biscuits.
The agreement also provides recognition of India’s National Programme for Organic Production (NPOP) certification, potentially opening new opportunities for Indian organic food exports in a country heavily dependent on food imports.
Untapped potential for seafood and farm exports
The Commerce Minister highlighted significant opportunities in marine exports, noting that India’s share of Oman’s seafood imports remains relatively low despite strong demand.
Exports of products such as shrimp and frozen cuttlefish are expected to benefit from improved market access, potentially generating employment in fishing, processing, packaging, cold-chain logistics and export operations.
Pharma, services and professional mobility
Beyond merchandise trade, the agreement includes extensive commitments in services, a sector where India sees considerable untapped potential.
According to the Commerce Ministry, India’s share in Oman’s services imports remains modest despite strong capabilities in information technology, professional services, education, healthcare and research.
The agreement covers sectors such as computer-related services, business and professional services, audio-visual services, education, healthcare, research and development, tourism and environmental services.
A major gain for India’s pharmaceutical industry is a provision that allows medicines already approved by regulators such as the USFDA, EMA, UK MHRA and TGA to receive marketing authorisation in Oman within 90 days.
The CEPA also includes provisions for cooperation in traditional medicine and creates opportunities for India’s AYUSH and wellness sectors.
For the first time, Oman has offered wide-ranging mobility commitments for Indian professionals. The quota for intra-corporate transferees has been increased from 20 per cent to 50 per cent, while contractual service suppliers will be allowed to stay for up to two years, with the possibility of a further two-year extension.
The agreement also provides more liberal entry conditions for professionals in fields such as accountancy, taxation, architecture, engineering, healthcare and consulting.
In another significant provision, Indian companies will be allowed 100 per cent foreign direct investment in major service sectors in Oman through commercial presence.
Strategic significance
India and Oman share deep economic and historical ties. Nearly 700,000 Indians live and work in Oman, contributing annual remittances of around $2 billion. More than 6,000 Indian businesses operate across sectors in the country.
The Commerce Ministry has described the agreement as part of India’s broader strategy of negotiating trade deals with economies that complement rather than compete with India’s labour-intensive manufacturing sectors.
The CEPA is also notable because it is the first bilateral trade agreement signed by Oman with any country since its free trade agreement with the United States in 2006.
Goyal said the pact reflected India’s broader trade strategy of expanding global partnerships while creating opportunities for domestic industries.
“In a fragmented and protectionist world, PM Modi is sending a clear message that the new, confident India will not retreat behind walls. It will rise through partnerships, competitiveness and global engagement,” he wrote.
First Published:
June 01, 2026, 13:54 IST
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