India-Oman CEPA Signed: A New Chapter in Gulf Economic Engagement

How the India–Oman CEPA Will Boost Trade, Services and Professional Mobility

India and Oman have entered a new phase of economic cooperation with the signing of the Comprehensive Economic Partnership Agreement (CEPA) , a wide-ranging trade pact designed to expand commerce, investment and services collaboration. The agreement reflects India’s broader strategy of deepening economic ties with key Gulf partners while reinforcing long-standing political and strategic relations with the Sultanate.

PM Modi Calls CEPA a Historic Milestone

Prime Minister Narendra Modi described the agreement as a “historic step forward” that will energise India–Oman relations in the 21st century. He noted that the CEPA would open new opportunities for businesses, entrepreneurs and young professionals in both countries, creating a durable framework for growth-oriented cooperation. The Prime Minister emphasised that the pact aligns with India’s vision of resilient supply chains and mutually beneficial global trade partnerships.

Key Trade Provisions and Market Access

Under the CEPA, Oman has granted zero-duty access on over 98 per cent of its tariff lines , covering more than 99 per cent of India’s exports by value . Labour-intensive and high-value sectors such as textiles, gems and jewellery, leather goods, engineering products, pharmaceuticals, medical devices and automobiles are expected to benefit from immediate tariff elimination. India, in turn, has agreed to liberalise tariffs on nearly 78 per cent of its tariff lines for imports from Oman, while safeguarding sensitive domestic sectors through exclusions and tariff-rate quotas.

Services, Investment and Mobility Gains

Services form a major pillar of the agreement. Oman has opened sectors including IT, education, health, research, professional and audio-visual services. The CEPA enhances professional mobility through higher quotas and longer stay periods for Indian workers and intra-corporate transferees. Indian companies are also permitted 100 per cent FDI in several Omani services sectors, with new scope for collaboration in AYUSH, wellness and healthcare services.

What to Note for Exams?

• India–Oman CEPA was signed in December 2025 .

• Oman offers zero-duty access on over 98% of its tariff lines.

• Bilateral trade exceeds USD 10 billion .

• The pact covers goods, services, investment and mobility .

Strategic and Economic Significance

Signed by India’s Commerce and Industry Minister and Oman’s Minister of Commerce, Industry and Investment Promotion, the CEPA is expected to boost exports, attract investment, generate employment and strengthen Oman’s role as India’s economic gateway to the Middle East and Africa .