India Secures 50 Percent Workforce Quota for Indians in Oman Under CEPA

Oman Raises Indian Employment Cap, Boosting Labour Mobility and Services Trade

India has secured a significant employment concession for its workforce in Oman , with the Gulf nation allowing companies to employ up to 50 per cent Indian nationals , up from the earlier cap of 20 per cent. The provision is part of the newly concluded India–Oman Comprehensive Economic Partnership Agreement (CEPA) and is expected to substantially benefit Indian workers, professionals and enterprises operating in the Sultanate.

Major Employment Concession Under CEPA

Officials said the revised workforce cap ensures that Indian companies operating in Oman are no longer compelled to recruit personnel from third countries to meet staffing needs. This provides Indian firms greater flexibility in workforce planning while expanding overseas employment opportunities for Indian nationals across skill categories. A crucial safeguard in the agreement is the “standstill clause” , which prevents Oman from lowering the 50 per cent ceiling in the future, offering long-term policy certainty to businesses and workers alike.

Safeguards and Regional Parity

The agreement also incorporates a parity clause , ensuring that any labour-related concession Oman grants to SAARC countries will automatically apply to India. While Oman continues to prioritise employment of its own citizens, officials clarified that stricter localisation norms apply mainly to select senior or sensitive positions. In most goods and services sectors, the new framework is expected to significantly ease labour mobility and reduce regulatory friction for Indian companies.

Services Trade and Professional Mobility

Services trade remains central to India’s engagement with the Gulf. Oman currently hosts around seven lakh Indian nationals , who remit over $2 billion annually to India. CEPA expands quotas for Intra-Corporate Transferees , with visas valid for up to four years . Contractual service suppliers will also receive four-year visas, while independent professionals can stay up to 180 days . Business visitors will be eligible for visas of up to 90 days .

What to Note for Exams?

• Oman raised the Indian workforce cap from 20% to 50% .

• The provision is protected by a CEPA standstill clause .

• Parity applies to concessions given to SAARC nations .

• About 7 lakh Indians are employed in Oman.

Economic and Strategic Significance

The move strengthens India’s position in the Gulf labour market, supports remittance flows and enhances overseas employment generation. It also reinforces Oman’s role as a key partner in India’s West Asia economic strategy , deepening cooperation in trade, services and workforce mobility.