India–Oman CEPA: How the new FTA will reshape gulf trade and shipping

Recently on 18 December 2025, India and Oman formally signed the Comprehensive Economic Partnership Agreement (CEPA) — a pivotal free trade deal between the two nations. The agreement was signed in Muscat during the official visit of India’s Prime Minister, marking one of the most significant trade pacts for India in the Gulf region this decade.

This trade pact is expected to boost bilateral trade, strengthen investment flows, and deepen cooperation across goods, services, and professional mobility — reinforcing India’s strategic trade footprint in West Asia.

Important points of the India–Oman CEPA

Duty-free market access

• Oman will eliminate tariffs on 98.08% of its tariff lines, covering about 99.38% of India’s exports by value. This means near-universal duty-free access for Indian goods in the Omani market.

• India will also provide tariff concessions on about 77.79% of its tariff lines covering most imports from Oman, promoting two-way trade.

 Goods and sectors to benefit

Indian exporters across labour-intensive and value-added sectors are poised to gain from the tariff eliminations:

• Textiles, garments, and apparel

• Leather and footwear

• Gems and jewellery

• Engineering goods and metal products

• Plastics and furniture

• Pharmaceuticals and medical devices

• Agricultural and processed food items (such as honey, cashew, bakery products, and dairy)

• Pharma & Healthcare Advantage

India secured duty-free access for key medicines, APIs (Active Pharmaceutical Ingredients) and faster regulatory approvals for products approved by major global regulators — boosting Indian pharma presence in Oman’s growing medical market.

Both the nations had a bilateral trade crossing $10.6 billion in 2024-25. Exports from India stood around $4 billion, with key imports including crude oil, LNG, fertilisers, and chemical inputs.

The elimination of tariffs and easier market access creates strong opportunities for Indian exporters to:

Oman’s strategic location at the mouth of the Arabian Sea positions it as a gateway to the Gulf Cooperation Council (GCC) markets and East Africa.

When is the implementation

The India–Oman CEPA is expected to come into force from March 2026

Image credit - AI