The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially takes effect on June 1, 2026, marking a significant milestone in bilateral trade relations. This agreement is set to enhance trade by eliminating tariffs on a wide range of products, thereby benefiting several sectors.
Key Export Gains
India's exports to Oman will see substantial gains in several sectors:
- Engineering goods
- Pharmaceuticals
- Agricultural and processed food
- Marine products
- Textiles
- Chemicals
- Electronics
- Plastics
- Gems and jewellery
Duty-Free Exports
The CEPA provides zero-duty access for numerous Indian products, including:
- Natural honey
- Cashew
- Boneless meat
- Bakery products
- Chocolate and sugar confectionery
- Mineral water
- Cheese, curd, milk, cream
- Frozen fish, butter
- Animal and vegetable fats and oils
Currently, Oman levies duties ranging from 5% to 100% on these products. The agreement consolidates India's 98.3% share, making Oman the largest export destination for Indian eggs.
Mobility and Services
The CEPA also enhances mobility for Indian professionals, offering temporary stay commitments for intra-corporate transferees, contractual service suppliers, business visitors, and independent professionals. It liberalizes entry and stay for professionals in accountancy, taxation, architecture, and medical fields.
"This agreement marks the first-ever commitment by any country on traditional medicine," noted a trade analyst.
Investment and Services
The agreement includes a commitment to 100% foreign direct investment (FDI) for Indian companies in major services sectors. Additionally, it fast-tracks marketing authorizations for pharmaceuticals approved by USFDA, EMA, and UKMHRA.
Omani Concessions
Oman benefits from duty-free access to 2,000 tonnes of Omani dates annually and concessions on Gum Arabica and Frankincense, which are used in the food and perfume sectors, respectively.
| Product | Current Duty | New Duty |
|---|---|---|
| Natural Honey | 5-100% | 0% |
| Cashew | 5-100% | 0% |
| Boneless Meat | 5-100% | 0% |
The CEPA is expected to significantly boost bilateral trade, fostering economic growth and strengthening ties between India and Oman.
