India–Oman Comprehensive Economic Partnership Agreement Explained

India–Oman Comprehensive Economic Partnership Agreement Explained

India and Oman have signed a landmark Comprehensive Economic Partnership Agreement (CEPA) , significantly deepening bilateral trade, investment and services cooperation. The agreement was signed in Muscat in the presence of Prime Minister Narendra Modi and marks a major step in India’s economic engagement with the Gulf region. CEPA positions Oman as a strategic trade partner while supporting India’s broader diversification strategy amid global trade uncertainties.

Duty-Free Access for Indian Exports
Under the agreement, Oman has granted zero-duty access on over 98 per cent of its tariff lines , covering 99.38 per cent of India’s exports by value . Immediate tariff elimination applies to nearly 98 per cent of product categories. Key beneficiaries include labour-intensive sectors such as textiles, gems and jewellery, leather goods, footwear, engineering products, pharmaceuticals, medical devices and automobiles . These exports earlier faced import duties of around five per cent, which will now be completely eliminated, enhancing price competitiveness for Indian goods.

India’s Tariff Concessions to Oman
India has committed to liberalising 77.79 per cent of its tariff lines , accounting for nearly 95 per cent of imports from Oman by value . Products of interest to Oman, including dates, marbles and petrochemical products , will receive concessions largely through tariff-rate quotas. Sensitive sectors such as dairy, tea, coffee, rubber, tobacco, gold and silver bullion, jewellery, footwear and sports goods have been excluded to protect domestic producers.

Services, Investment and Professional Mobility
CEPA includes strong commitments in services. Oman has opened sectors such as IT, professional and business services, education, health, R&D and audio-visual services , allowing 100 per cent FDI by Indian firms. A major highlight is enhanced professional mobility , with Mode 4 quotas for intra-corporate transferees raised to 50 per cent and the stay for contractual service suppliers extended to two years .

What to Note for Exams?

• India–Oman CEPA grants zero-duty access to over 98% of Indian exports.

• Immediate tariff elimination covers nearly 98% of Omani tariff lines.

• Oman allows 100% FDI by Indian firms in key services.

• CEPA expands professional mobility with higher quotas and longer stays.