The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially commenced on February 6, 2026, marking a significant milestone in bilateral trade relations. This agreement is expected to bolster trade volumes and provide preferential market access for various Indian exports.
Trade Volume and Economic Impact
Bilateral trade between India and Oman reached $11.18 billion in FY26, up from $10.61 billion in FY25. This growth is attributed to the enhanced market access and reduced tariffs under the CEPA.
| Fiscal Year | Trade Volume (USD Billion) |
|---|---|
| FY25 | 10.61 |
| FY26 | 11.18 |
Key Sectors Benefiting
The agreement particularly benefits Indian exporters in sectors such as:
- Textiles
- Leather
- Plastics
- Marine products
- Automobiles
- Sports goods
- Agricultural items
Commerce and Industry Minister Piyush Goyal highlighted the preferential access these sectors will receive in the Omani market, enhancing their competitive edge.
Strategic Investments and Workforce
India anticipates increased investments in Oman, with a focus on processing Indian materials for export. Minister Goyal noted that Indian workers would receive preferential employment opportunities in these ventures, aligning with Oman's Omanisation policy.
"For investments made by Indian companies, Indian workers will be given preferential ability to serve," said Piyush Goyal.
Energy and Resource Access
Oman has committed to lifting its ban on exporting unpolished marble blocks, opening new avenues for Indian importers. Additionally, India could gain greater access to Oman's energy, fertilizer, and pharmaceutical sectors, as stated by Oman's Foreign Trade Advisor Pankaj Khimji.
Future Prospects
Oman remains open to foreign companies, including Indian firms, bidding for conventional oil and gas projects. This openness is part of a broader strategy to foster a "win-win" partnership in the energy sector.
The CEPA is expected to further strengthen the economic ties between India and Oman, creating new opportunities for businesses and enhancing bilateral trade relations.
