India and Oman Implement Comprehensive Economic Partnership Agreement

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on June 1, 2026, following its signing in December 2025 by Narendra Modi and Sultan Haitham bin Tariq Al Said. The pact provides Indian exporters zero-duty access to 98.08% of Oman's tariff lines, covering 99.38% of India's export value. Key beneficiaries include MSMEs in textiles, pharmaceuticals, gems and jewelry, and engineering goods. In return, India liberalized approximately 78% of its tariff lines, providing concessions on Omani petrochemicals and a quota for Omani dates.

Beyond trade in goods, the agreement enables 100% foreign direct investment for Indian firms in key Omani service sectors and eases professional mobility for Indian healthcare, IT, and accounting experts. It also allows Indian-owned firms in Oman to bypass local 'Omanisation' hiring quotas. To mark the activation, initial shipments of jewelry and agricultural products were dispatched from Mumbai, Kolkata, and Chennai.

Strategically, the agreement establishes Oman as a critical energy and trade gateway for India. Because much of Oman's coastline lies outside the Strait of Hormuz, the pact provides a reliable alternative for importing crude oil, LNG, and fertilizers amid shipping disruptions caused by the US-Iran war. The agreement also includes a healthcare annex for traditional systems like Ayurveda and streamlined pharmaceutical approvals for products cleared by global regulators like the USFDA.