OVERVIEW
India and Oman have finalized a big trade agreement. It is called the Comprehensive Economic Partnership Agreement (CEPA). The agreement was signed in December 2025. Oman approved it through a Royal decree in February 2026. Now, it will come into force on 1 June 2026. Under this deal, India will get duty-free access for 98% of its exports to Oman. These include textiles, farm products, and leather goods. India will also lower tariffs on some Omani products like dates, marbles, and petrochemicals. Bilateral trade between the two countries was about US$10.61 billion in 2024-25.
WHAT IS A FREE TRADE AGREEMENT?
A Free Trade Agreement (FTA) is a pact between two or more countries. It reduces or removes customs duties (taxes on imports) on certain goods and services. CEPA is a broader form of trade agreement. It covers not just goods but also services, investment, and economic cooperation. So CEPA is more comprehensive than a basic FTA.
INDIA-OMAN CEPA – KEY PROVISIONS
The India-Oman CEPA has two main sides:
For India (benefits):
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India will get duty-free access for 98% of its exports to Oman.
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Main products that will benefit: textiles, agricultural products, and leather items.
For Oman (benefits):
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India will reduce tariffs on Omani products.
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These include dates, marbles, and petrochemical items .
This means Indian companies can sell more easily to Oman, and Omani companies can sell more easily to India. Both sides win.
INDIA-OMAN TRADE RELATIONS
India and Oman are long-time trading partners. In the financial year 2024-25, bilateral trade between the two countries stood at about US$10.61 billion .
On 12 May 2026 , India and Oman held discussions in New Delhi on economic cooperation and trade facilitation. This meeting helped finalize the implementation details of the CEPA.
WHY THIS AGREEMENT MATTERS
Oman is an important country in the Gulf region. It is close to India both geographically and historically. This CEPA will:
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Boost Indian exports of textiles, leather, and farm goods
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Give Indian companies better access to the Gulf market
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Lower prices for Omani dates and marble in India
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Strengthen overall economic ties between the two nations
TIMELINE OF THE AGREEMENT