Zero Duty in India to Oman Goods for Five Percent Reciprocal Duty
Concession
Ø
India
and Oman energize a new Trade Gateway through a landmark Comprehensive Economic
Partnership Agreement (CEPA)
Ø India and Oman Launch Transformational
CEPA, Opening a New Era of Strategic Economic Partnership under the Visionary
Leadership of Hon’ble Prime Minister Narendra Modi
Ø A New Trade Corridor for Viksit Bharat
@2047: CEPA offers zero-duty access for 99.38 per cent of India’s exports to
Oman.
Ø India Becomes Only the Second Nation
After the United States to Secure a Comprehensive Bilateral Trade Pact with
Oman
Ø India–Oman CEPA Expected to
Significantly Boost Bilateral Trade, Exports, Employment Generation and
Strategic Economic Integration
Ø Labour-intensive sectors of Agriculture,
and Marine Products, Textiles, Gems and Jewellery, Pharmaceuticals, Engineering
Goods, Footwear and Automobiles Poised for Strong Export Expansion with full
tariff elimination and Competitive Advantage
Ø Breakthrough Trade Facilitation Measures
Remove Non-Tariff Barriers and Fast-Track Market Access for Indian Products:
EIC Certificates to Be Accepted at Omani Ports
Ø Strengthens India’s Dominance in
Fisheries, Meat, Eggs, Marine Products, Processed Foods with Duty Elimination
Ø Gateway to GCC and East Africa: Oman’s
Logistics Hubs at Sohar, Duqm and Salalah to Amplify India’s Regional Trade
Connectivity
Ø Best-Ever Services Offer by Oman
covering 127 Services Sub-Sectors, Unlocking Opportunities for Indian
Professionals, Startups and knowledge-led Enterprises
Ø Enhanced Professional opportunities: ICT
Ceiling Raised from 20% to 50%; Dedicated Professional Commitments for
Engineers, Doctors, IT Professionals, Teachers and Consultants
Ø To Protect Farmers and Domestic
Industry, Sensitive Sectors Excluded from Market Access including Dairy,
Cereals, Fruits, Vegetables, Edible Oils, Oilseeds, Rubber, Leather and Spices
Ø Fast-Track Market Access for
Pharmaceuticals: USFDA, EMA, UK MHRA and TGA-approved Products to Receive
Marketing Authorization within 90 Days
Ø India–Oman CEPA Expected to
Significantly Boost Bilateral Trade, Exports, Employment Generation: Creates a
Strategic Economic Corridor Connecting South Asia, the Gulf and East Africa
Key
Highlights
1.
CEPA enters into force
o
The India–Oman Comprehensive Economic Partnership
Agreement (CEPA) became operational on 1 June 2026.
o
The agreement was signed on 18 December 2025 in
Muscat in the presence of Narendra Modi and Haitham bin Tarik Al Said.
2.
Major boost to bilateral trade
o
India–Oman bilateral trade reached USD 11.18
billion in FY 2025-26, up from USD 10.61 billion in FY 2024-25.
o
Oman is India's second-largest trading partner in
the Gulf region.
3.
99.38% of India's exports get duty-free access
o
Oman will provide duty-free access to 99.38% of
India's exports by value.
o
Covers 98.08% of Oman's tariff lines.
o
Earlier, only 15.33% of India's exports entered
Oman duty-free under MFN treatment.
4.
Immediate implementation of tariff concessions
o
All agreed zero-duty benefits take effect
immediately, enhancing competitiveness of Indian exporters.
Sector-wise
Benefits
5. Gems
& Jewellery: Major Export Opportunity
·
Import duties of up to 5% eliminated immediately.
·
Indian exporters gain an advantage over competitors
from China, Italy, Turkey and Thailand.
·
Oman's jewellery market is worth about USD 1.07
billion annually.
·
India's exports could increase from USD 25.8
million to nearly USD 150 million within three years.
·
Key beneficiaries:
o
Surat (diamonds)
o
Jaipur (gemstones)
o
Mumbai
o
Kolkata
o
Chennai
6.
Agriculture & Food Products
·
Duty-free access for:
o
Basmati rice
o
Cashews
o
Honey
o
Sweet biscuits
o
Butter
o
Mangoes
o
Onions and potatoes
·
Benefits farmers and exporters across major
agricultural states.
·
India already holds:
o
94%+ share in Oman's bovine meat imports.
o
98%+ share in fresh egg imports.
7. Marine
Products
·
All seafood exports, including shrimp, fish and
cuttlefish, receive immediate duty-free access.
·
Expected to benefit exporters in:
o
Andhra Pradesh
o
Kerala
o
Tamil Nadu
o
Gujarat
8.
Pharmaceuticals
·
Zero-duty access for medicines, vaccines and
pharmaceutical ingredients.
·
Faster approvals:
o
Products approved by USFDA, EMA, UK MHRA and TGA
can receive marketing authorization within 90 days.
·
Reduced compliance burden through recognition of
GMP and inspection reports.
9.
Engineering & Electronics
·
All engineering products receive duty-free market
access.
·
Benefits:
o
Machinery
o
Automobiles
o
Electrical equipment
o
Iron & steel products
·
Engineering exports to Oman expected to rise from
USD 876 million to USD 1.3–1.6 billion by 2030.
·
Electronics exports gain access to Oman's USD 1.7
billion electronics import market.
Services:
Best-Ever GCC Offer to India
10.
Comprehensive Services Access
·
Oman opens 127 service sub-sectors to Indian
firms.
·
Key sectors include:
o
IT and software services
o
Engineering
o
Healthcare
o
Education
o
Financial services
o
Telecommunications
o
Tourism
o
Construction
11.
Enhanced Mobility for Indian Professionals
·
Binding commitments for professionals in:
o
Accounting
o
Engineering
o
Medicine
o
IT
o
Education
o
Construction
Mobility
provisions include:
·
Business visitors: up to 90 days.
·
Independent professionals: up to 180 days.
·
Intra-Corporate Transferees (ICTs): up to 4 years.
12.
Social Security Agreement under discussion
·
Future negotiations planned to avoid dual
social-security contributions for Indian workers and employers.
Trade
Facilitation & Regulatory Benefits
13.
Reduced Non-Tariff Barriers
·
Oman will accept certificates issued by India's
Export Inspection Council.
·
Recognition of:
o
India's organic certification system (NPOP)
o
Indian halal certification system
·
Faster customs clearance and reduced testing
requirements.
14.
Faster Cargo Movement
·
Standardized clearance timelines.
·
Fast-track procedures for perishable goods.
·
Lower logistics costs for exporters.
Balanced
Protection for India
15.
Sensitive sectors protected
·
India excluded sensitive products from tariff
concessions, including:
o
Dairy products
o
Cereals
o
Fruits and vegetables
o
Edible oils
o
Oilseeds
o
Rubber
o
Leather
o
Spices
16.
Safeguard mechanisms included
·
Tariff Rate Quotas (TRQs).
·
Minimum Import Price (MIP) provisions.
·
Measures designed to protect domestic farmers and
manufacturers.
Strategic
Importance
17. Oman
as a gateway market
·
Oman provides access to:
o
GCC markets.
o
East African markets.
·
Strategic logistics hubs:
o
Sohar
o
Duqm
o
Salalah
18.
Strengthens India's Gulf strategy
·
Enhances supply-chain integration.
·
Supports manufacturing growth, exports, investment,
and employment generation.
·
Reinforces India's objective of becoming a globally
integrated economy under the Viksit Bharat 2047 vision.
Conclusion
The India–Oman CEPA is one of India's most
comprehensive trade agreements with a Gulf country. By granting duty-free
access to 99.38% of Indian exports, improving market access for services
professionals, reducing regulatory barriers, and safeguarding sensitive
domestic sectors, the agreement is expected to significantly expand bilateral
trade, investment, and economic integration with Oman and the wider GCC region.
On 1 June, 2026, the India–Oman Comprehensive Economic Partnership
Agreement (CEPA) entered into force marking a defining milestone in bilateral
economic relations and opening a transformative new chapter in strategic trade
and investment cooperation between the two countries.
The India-Oman CEPA was signed on 18th December, 2025 in
Muscat in the presence of Hon’ble Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tarik Al Said. After
completion of internal processes by both sides, the Agreement has entered into force on 1st
June, 2026.
The Agreement was operationalized in the presence of Union Minister of
Commerce and Industry Minister Piyush Goyal and H.E. Issa Saleh Al Shibani,
Ambassador of Oman to India. To mark the entry into force the first
consignments availing preferential tariff benefits under the Agreement included
agriculture and gems and jewellery exports from Mumbai, Kolkata and Chennai
were flagged off.
Oman is India's second-largest trading partner in the Gulf region and
serves as a strategic gateway to the wider GCC market through its advanced port
infrastructure. Bilateral trade
between India and Oman reached USD 11.18 billion in FY 2025-26, registering a
positive trend from USD 10.61 billion in FY 2024-25. Successfully concluded through a structured
negotiation process, the Agreement reinforces India’s growing economic and
trade footprint and strategic presence across GCC economies, encompassing
goods, services, professional mobility, regulatory cooperation, Non-Tariff
barrier safeguards, and cooperation chapters, going well beyond tariff reduction to build a
long-term economic architecture.
Oman is India’s second-largest trading partner in the Gulf region and
serves as a strategic gateway to the wider GCC and East African markets through
its advanced logistics and port infrastructure. Bilateral trade between India
and Oman reached USD 11.18 billion in FY 2025-26, registering continued growth
from USD 10.61 billion in FY 2024-25.
The India-Oman CEPA represents another major milestone in India’s
deepening engagement with the Gulf region and reflects India’s broader strategy
of building resilient, trusted and diversified trade partnerships that support
manufacturing competitiveness, employment generation, services exports and
integration into global value chains.
Speaking on the operationalization of the CEPA, Piyush Goyal said:
“The India–Oman CEPA marks a defining milestone in India’s engagement
with Oman and reflects Hon’ble Prime Minister Narendra Modi’s vision of forging
trade partnerships that deliver gains for farmers, fishermen, youth, women,
entrepreneurs and MSMEs. This Agreement will be a force multiplier in the Gulf
region. With 99.38% of India’s exports receiving duty-free access, the
Agreement unlocks new opportunities for our exporters and professionals gain
opportunities. Oman is our trusted partner, a bridge for our people and a
gateway to the Gulf and East Africa. Our opportunities will be elevated and
CECA will strengthen India’s integration into regional and global value chains.
By delivering significant benefits to labor-intensive
sectors, it will support job creation, drive investment and enable Indian
enterprises to compete on an equal footing with suppliers from countries
enjoying preferential market access”
Commerce Secretary, Rajesh Agrawal said “At a time when global trade
patterns are being reconfigured by supply-chain diversification, shifting
production networks and the emergence of new economic corridors, the CEPA
positions India and Oman to leverage these structural changes. By fostering
closer integration across trade, services, investment, and logistics, the
Agreement creates a framework for more resilient value chains, greater economic
competitiveness and a stronger strategic partnership with regional and global
relevance. The India-Oman CEPA brings new energy to our bilateral economic
engagement, anchored in complementary strengths, deeper regulatory cooperation
and a shared commitment to growth. The agreement is tariff liberalization PLUS:
it enhances market access, facilitates service trade and provides greater
predictability for businesses operating across both markets.”
Gateway to the Gulf: Amplifying Trade, Services and Prosperity for
Viksit Bharat 2047
Trade in Goods: Transformational 99.38% Duty-Free Access
·
CEPA provides duty-free access for 99.38% of India’s exports to Oman by
value, covering 98.08% of Oman’s tariff lines, making it one of the most
comprehensive market access outcomes secured by India in the Gulf region.
·
All zero-duty concessions come into effect immediately providing
certainty and competitiveness to Indian exporters.
·
Earlier, under the MFN regime, only 15.33% of India’s exports entered
Oman duty-free. With CEPA, Indian exporters gain substantial price
competitiveness in Oman’s nearly USD 28 billion import market.
·
The Agreement is expected to significantly boost MSMEs, manufacturing
and employment by enhancing competitiveness in labor-intensive
sectors such as gems & jewellery, textiles, leather, footwear, marine
products, engineering goods, processed foods and pharmaceuticals.
·
Indian exporters now compete on equal or better terms than suppliers
from countries without preferential trade arrangements with Oman.
·
Oman’s strategic logistics hubs at Sohar, Duqm and Salalah provide
Indian exporters’ enhanced access not only to Oman but also to wider GCC and
East African markets.
Calibrated Market Access and Protection of Sensitive Sectors
·
India has offered tariff liberalization on 77.79% of tariff lines
covering 94.81% of imports from Oman by value, while maintaining strong
safeguards for sensitive sectors.
·
Products protected under the exclusion list include dairy products,
cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and
key agricultural products.
·
Tariff Rate Quotas and Minimum Import Price mechanisms have also been
incorporated for selected sensitive industrial and agricultural products to
safeguard domestic industry and manufacturing competitiveness.
·
The calibrated structure of concessions balances India’s export
ambitions with food security concerns, farmer welfare and rural livelihood
protection.
Marine Products: Marine Products: Enhancing India's Presence in Regional
Seafood Value Chains
·
All marine products including shrimp, fish and cuttlefish receive
immediate duty-free access replacing earlier import duties of up to 5%.
·
Oman’s marine imports stood at USD 35.3 million in 2025 while India’s
exports accounted for only USD 10 million, indicating substantial untapped
potential.
·
The Agreement is expected to significantly expand exports from major
coastal states including Andhra Pradesh, Kerala, Tamil Nadu and Gujarat.
·
Indian marine exporters gain improved competitiveness, faster clearances
and stronger integration into Gulf-region food supply chains.
Gems and Jewellery: Enhancing India's Leadership in Global Jewellery
Trade
·
Import duties of up to 5% on gems and jewellery have been eliminated
from Day One.
·
Indian exporters gain a structural price advantage over competitors from
Italy, Turkey, Thailand and China.
·
Oman's total gems and jewellery import market is USD 1.07 billion
annually. India's exports to Oman in this sector stood at USD 25.78 million in
2025, comprising USD 18.48 million in polished natural diamonds and USD 6.67
million in gold jewellery.
·
It is projected that exports could reach six fold
to USD 150 million within three years. Indian suppliers now have a structural
price and competitive advantage over its competitors all of whom continue to
face Oman’s tariffs.
·
Clusters in Surat (diamonds), Jaipur (gemstones), Mumbai, Kolkata and
Chennai are positioned to capture this growth, as new opportunities open for
gems and jewelry, and employment gains are expected
across these clusters.
Agriculture and Processed Food: Harnessing India’s Agricultural Strength
for Global Markets
·
India is Oman's second-largest agricultural supplier with a 17.8% share
in Omani imports. While exports have grown at a CAGR of 9.13% to USD 552.85
million in 2025, exports of APEDA-scheduled product grew even faster at 12.36%
CAGR to USD 477 million.
·
Duty elimination strengthens India’s competitiveness in products such as
honey, condiments, cashews, basmati rice, butter and sweet biscuits.
·
India currently accounts for over 94% of Oman’s bovine meat imports and
over 98% of fresh egg imports, making Oman one of India’s most important
agricultural export destinations in the Gulf region.
·
Key export items identified include basmati and parboiled rice, cashew
kernels, onions, potatoes, soybean meal, sweet biscuits, butter, frozen
boneless bovine meat, and fertilised eggs represent a broad and growing
portfolio for farmers, food processors and agri-exporters.
·
Mango exports including Alphonso, Kesar and Dasheri
varieties gain enhanced competitiveness in Gulf markets through duty-free
access.
·
The Agreement is expected to benefit farmers, agri-processors
and food exporters across states including Uttar Pradesh, Punjab, Haryana,
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu.
Pharmaceuticals: Advancing Market
Access Through Regulatory Breakthrough
·
The Agreement provides binding zero-duty access for medicines, vaccines
and pharmaceutical ingredients pharmaceutical ingredients including penicillins, streptomycins and
tetracyclines
·
Oman's pharmaceutical market was valued at USD 302.84 million in 2025
and is projected to reach USD 473.71 million by 2031 (CAGR 6.6%), presenting a
significant and growing opportunity for India's pharmaceutical exporters.
·
Products approved by USFDA, EMA, UK MHRA and TGA will qualify for
marketing authorization within 90 days without prior inspection and with a
270-working-day target where inspections are required,
·
Acceptance of GMP and inspection reports significantly reduces
compliance burdens and accelerates market entry for Indian pharmaceutical
exporters
·
Indian pharmaceutical companies gain enhanced predictability, faster
approvals and improved competitiveness in the Gulf healthcare market.
·
Oman’s pharmaceutical market is projected to grow substantially over the
coming years, creating major opportunities for Indian exporters.
Electronics and Engineering Goods: Full Tariff Certainty to Strengthen
India’s Manufacturing Export Advantage
·
All engineering products receive zero-duty market access replacing MFN
tariffs of up to 5%.
·
Key sectors benefiting include machinery, automobiles, electrical
equipment, iron and steel and industrial machinery.
·
Oman imported approximately USD 1.7 billion worth of electronics
products in 2025, presenting significant opportunities for Indian
manufacturers. India's electronics exports to Oman stood at USD 146 million, a
significant gap that the CEPA's full tariff certainty, covering all electronics
categories including boards and cabinets, static converters and TV reception
apparatus, is designed to close.
·
Indian electronics and engineering exporters, including those operating
under the PLI framework, are expected to gain increased market share.
·
Oman is an important destination for India's engineering exports, which
reached USD 875.83 million in FY 2025-26, covering machinery, electrical
equipment, automobiles, iron and steel, and non-ferrous metals. All engineering
products receive zero-duty market access, replacing earlier MFN tariffs of
0–5%. Engineering exports to Oman are projected to rise to USD 1.3–1.6 billion
by 2030. Key gains are expected in iron and steel for infrastructure projects,
electric and industrial machinery, motor vehicles (5% tariff removed), and
copper products.
Services: Best-Ever Offer by Oman catalysing new frontiers for Services
·
Bilateral services trade stood at USD 863 million in 2024, with India
running a surplus of USD 447 million. Oman's global services imports amounted
to USD 12.52 billion, while India accounted for only 5.31% of these imports,
indicating significant untapped potential.
·
Under the CEPA, Oman has undertaken broad and deep market access
commitments across 127 services sub-sectors. These commitments represent
GATS/Best FTA-plus commitments, making it the most comprehensive services offer
made by any GCC country to India.
·
Key sectors include computer and related services, professional
services, engineering, healthcare, education, financial services, construction,
tourism and telecommunications., Computer and Related Services, Professional
Services (legal, accounting, engineering, medical and allied services),
Audio-Visual Services , Other Business Services , Research & Development
Services, Telecommunication Services , Construction Services , Education
Services, Environmental Services , Health Services , Financial Services and
Tourism and Travel-related Services
·
MFN commitments in key sub-sectors ensure that any more favorable treatment extended by Oman to third countries
will automatically be extended to India.
·
For the first time in any bilateral FTA, Oman has made binding
commitments for defined categories of professionals, including those in
Accounting, Engineering, Medicine , IT
, Education , Construction
·
The enhanced mobility provisions will benefit nearly 6,000 India–Oman
joint ventures. Business visitors may stay in Oman for up to 90 days;
Independent professionals may stay for up to 180 days; Intra-Corporate
Transferees (ICTs) may stay for up to 4 years. These provisions provide clear,
legally enforceable mobility pathways for India's professional workforce.
·
The agreement provides for future negotiations on a Social Security
Agreement (SSA). The SSA will provide reciprocal continuity of social security
benefits and help avoid dual contributions for Indian workers and employers in
Oman.
Smart Regulation and Trade Facilitation
·
Oman will mandatorily accept certificates issued by India’s Export
Inspection Council (EIC), eliminating duplicative testing and inspections.
·
India’s NPOP organic certification and halal certification systems are
recognized by Oman.
·
Dedicated SPS and TBT chapters reduce non-tariff barriers and improve
transparency and regulatory cooperation.
·
Standard cargo clearance timelines and fast-track mechanisms for
perishables improve efficiency and reduce logistics costs for exporters.
Investment: Deepening the Economic Architecture
·
CEPA establishes a structured framework for investment facilitation,
supporting investments across priority sectors including manufacturing,
logistics, energy and services.
·
Reduced compliance burdens, improved regulatory certainty and enhanced
market access are expected to significantly strengthen India’s MSME
competitiveness.
·
Startups, women, entrepreneurs and service professionals are expected to
benefit from improved integration into GCC value chains.
Bilateral Trade: Strong Momentum, Reinvigorating Trade
Bilateral trade between India and Oman reached USD 11.18 billion in FY
2025-26 and continues to show strong growth momentum. With the
operationalization of the CEPA, bilateral trade is expected to witness
substantial expansion in the coming years through enhanced market access,
cooperation, investment flows and deepening economic synergies.
The Agreement establishes a robust economic architecture between India
and Oman encompassing trade, investment, services, logistics and regulatory
partnership. The India-Oman CEPA represents another major step in India’s
journey towards becoming a globally integrated, resilient and competitive
economy under the vision of Viksit Bharat @2047.