The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on Sunday, marking a major step forward in economic ties between the two countries. The agreement is expected to strengthen trade, investment and services cooperation while creating new opportunities for businesses on both sides.

Under the agreement, Indian exporters will receive duty-free access on 98.08 per cent of Oman's tariff lines. This covers nearly 99.38 per cent of India's export value to the Gulf nation. The move is expected to provide a significant boost to India's merchandise exports by improving market access for several key sectors.

Industries likely to benefit include engineering goods, pharmaceuticals, agriculture and processed food products, marine products, textiles, chemicals, electronics, plastics, and gems and jewellery. Easier access to the Omani market is expected to increase the competitiveness of Indian products and help exporters expand their presence in the country.

Several Indian products will now enjoy immediate duty-free entry into Oman. These include natural honey, cashew, boneless meat, bakery products, chocolates and sugar confectionery, mineral water, cheese, curd, milk, cream, frozen fish and butter. The removal of tariffs is expected to make these products more attractive and affordable in the Omani market.

The agreement is also expected to support India's exports of animal and vegetable fats and oils. These products currently face import duties ranging from 5 per cent to 100 per cent in Oman. Reduced or eliminated tariffs will improve market access and help Indian exporters increase shipments. India is also expected to strengthen its position in the Omani egg market, as duty-free access will improve the competitiveness of Indian exports.

Apart from trade in goods, the CEPA includes important provisions related to services and professional mobility. The agreement offers better mobility opportunities for Indian professionals through temporary stay commitments. These benefits will apply to intra-corporate transferees, contractual service suppliers, business visitors and independent professionals.

The pact also eases entry and stay requirements for professionals working in sectors such as accountancy, taxation, architecture and healthcare. In a significant investment-related commitment, Oman has agreed to allow 100 per cent foreign direct investment (FDI) for Indian companies in several important services sectors. This is expected to encourage greater business participation and investment from Indian firms.

One of the notable features of the agreement is Oman's first-ever commitment on traditional medicine in any trade pact. This is expected to create opportunities for India's traditional medicine sector and improve cooperation in healthcare-related areas.

The agreement also includes provisions aimed at supporting pharmaceutical exports. Oman has agreed to provide faster marketing authorisations for pharmaceutical products that have already received approval from major international regulatory agencies. These include the US Food and Drug Administration (USFDA), the European Medicines Agency (EMA) and the UK Medicines and Healthcare Products Regulatory Agency (MHRA). Faster approvals are expected to help Indian pharmaceutical companies bring products to the Omani market more quickly.

The CEPA is expected to provide benefits to consumers and businesses in both countries. As part of the arrangement, India has agreed to allow duty-free access for up to 2,000 tonnes of Omani dates every year. India has also extended tariff concessions to products such as Gum Arabic, which is widely used in food and medicines, frankincense used in the perfume industry, petrochemicals and marble blocks.

Trade relations between India and Oman have shown steady growth in recent years. During fiscal year 2026, India imported goods worth USD 7.2 billion from Oman. The imports were largely dominated by energy and industrial products. Crude oil accounted for imports worth USD 1.6 billion, while liquefied natural gas imports stood at USD 1.2 billion. Fertiliser imports from Oman were valued at USD 843 million during the same period.

The implementation of the India-Oman CEPA is expected to deepen economic engagement between the two countries. It is likely to improve supply chain integration, increase trade and investment flows, and strengthen cooperation in goods, services and professional mobility. With wider market access and lower trade barriers, the agreement is expected to open new avenues for businesses while further strengthening the long-standing economic partnership between India and Oman.