Indian exporters to gain from Oman’s $28 billion import market
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 June 2026, marking a defining milestone in bilateral economic relations and opening a transformative new chapter in strategic trade and investment cooperation between the two countries.
Speaking on the operationalization of the CEPA, Commerce and Industry Minister Piyush Goyal said, “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. Oman is our trusted partner, a bridge for our people and a gateway to the Gulf and East Africa.
“Our opportunities will be elevated and CECA will strengthen India’s integration into regional and global value chains. By delivering significant benefits to labor-intensive sectors, it will support job creation, drive investment and enable Indian enterprises to compete on an equal footing with suppliers from countries enjoying preferential market access. This Agreement will be a force multiplier in the Gulf region.”
Commerce Secretary, Rajesh Agrawal elaborated, “The India-Oman CEPA brings new energy to our bilateral economic engagement, anchored in complementary strengths, deeper regulatory cooperation and a shared commitment to growth. The agreement is tariff liberalization PLUS: it enhances market access, facilitates service trade and provides greater predictability for businesses operating across both markets.”
With CEPA, Indian exporters gain substantial price competitiveness in Oman’s nearly US$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.
Indian exporters now compete on equal or better terms than suppliers from countries without preferential trade arrangements with Oman.
Oman’s strategic logistics hubs at Sohar, Duqm and Salalah provide Indian exporters’ enhanced access not only to Oman but also to wider GCC and East African markets.
Calibrated Market Access and Protection of Sensitive Sectors
India has offered tariff liberalization on 77.79% of tariff lines covering 94.81% of imports from Oman by value, while maintaining strong safeguards for sensitive sectors.
Products protected under the exclusion list include dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and key agricultural products.
Tariff Rate Quotas and Minimum Import Price mechanisms have also been incorporated for selected sensitive industrial and agricultural products to safeguard domestic industry and manufacturing competitiveness.
The calibrated structure of concessions balances India’s export ambitions with food security concerns, farmer welfare and rural livelihood protection.
Marine Products: Marine Products: Enhancing India’s Presence in Regional Seafood Value Chains
All marine products including shrimp, fish and cuttlefish receive immediate duty-free access replacing earlier import duties of up to 5%.
Oman’s marine imports stood at US$35.3 million in 2025 while India’s exports accounted for only US$10 million, indicating substantial untapped potential.
The Agreement is expected to significantly expand exports from major coastal states including Andhra Pradesh, Kerala, Tamil Nadu and Gujarat.
Indian marine exporters gain improved competitiveness, faster clearances and stronger integration into Gulf-region food supply chains.
Gems and Jewellery: Enhancing India’s Leadership in Global Jewellery Trade
Import duties of up to 5% on gems and jewellery have been eliminated from Day One.
Indian exporters gain a structural price advantage over competitors from Italy, Turkey, Thailand and China.
Bilateral trade between India and Oman reached US$11.18 billion in FY 2025-26 and continues to show strong growth momentum. 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 Agreement establishes a robust economic architecture between India and Oman encompassing trade, investment, services, logistics and regulatory partnership. The India-Oman CEPA represents another major step in India’s journey towards becoming a globally integrated, resilient and competitive economy, the Ministry of Commerce and Industry said. fiinews.com
