The India-Oman Comprehensive Economic Partnership Agreement (CEPA), operational since June 1, 2026, is set to significantly enhance export opportunities for India's labour-intensive sectors. According to the Economic Times, the agreement provides duty-free market access across 98.08% of Oman's tariff lines, covering 99.38% of India's export value. This marks a substantial improvement from the pre-CEPA scenario, where only about 15% of Indian exports entered Oman duty-free.
Key Sectors Benefiting
The CEPA is expected to open commercially meaningful corridors for India's labour-intensive and value-added sectors. Gulzar Didwania, Partner at Deloitte India, highlighted that sectors such as textiles, gems and jewellery, marine products, engineering goods, pharmaceuticals, processed foods, and chemicals will benefit significantly. These sectors are crucial as they directly support MSMEs and employment-intensive manufacturing.
- Textiles
- Gems and Jewellery
- Marine Products
- Engineering Goods
- Pharmaceuticals
- Processed Foods
- Chemicals
Strategic Importance
The agreement not only lowers tariffs but also builds a durable framework across goods, services, mobility, and investment. Didwania emphasized that the CEPA contributes to India's energy security and supply-chain resilience. Oman's strategic location, with ports like Salalah, Duqm, and Sohar, enhances India's maritime connectivity with the Middle East, East Africa, and Europe-facing trade routes.
Broader Economic Impact
The CEPA encompasses trade, investment, services, professional mobility, and regulatory cooperation, creating new opportunities for businesses in both countries. Budhia, another expert, noted that this comprehensive approach supports a sustained increase in bilateral commerce over the medium term.
"Taken together, the CEPA does not merely lower tariffs; it builds a durable framework across goods, services, mobility and investment that should support a sustained step-up in bilateral commerce over the medium-term," said Gulzar Didwania.
Comparative Data
| Aspect | Pre-CEPA Access | Post-CEPA Access |
|---|---|---|
| Duty-Free Tariff Lines | ~15% | 98.08% |
| Export Value Coverage | Not specified | 99.38% |
The India-Oman CEPA represents a strategic advancement in bilateral trade relations, offering substantial benefits to India's export sectors and enhancing economic ties between the two nations.
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