India and Oman have entered a new phase of economic cooperation with the implementation of the Comprehensive Economic Partnership Agreement (CEPA) from June 1, 2026. The landmark trade agreement is expected to significantly deepen bilateral commercial ties, expand market access, and create new growth opportunities for businesses in both countries.
The agreement provides Indian exporters with unprecedented access to the Omani market by eliminating customs duties on a vast majority of products. Industry experts view the pact as an important step in India’s broader strategy of strengthening economic integration with key international partners and expanding its global trade footprint.
Duty-Free Access for Nearly All Indian Exports
One of the most significant features of the agreement is the extensive tariff liberalisation offered by Oman. Under the CEPA framework, India will receive duty-free access across 98% of Oman’s tariff lines, covering more than 99% of India’s current exports to the country.
The tariff benefits are expected to improve the competitiveness of Indian products in Oman and enhance export opportunities across a wide range of industries.
Export-oriented sectors likely to benefit include:
Textiles and apparel
Sportswear and sporting goods
Gems and jewellery
Pharmaceuticals
Medical devices
Engineering products
Automobiles and auto components
Plastic products
Leather goods
Agricultural products
Marine exports
The removal of customs duties is expected to reduce costs for importers and increase demand for Indian products within the Omani market.
Major Boost for Indian MSMEs
The agreement is expected to particularly benefit India’s micro, small and medium enterprises (MSMEs), which form the backbone of the country’s export ecosystem.
Many MSME-driven sectors, including handicrafts, textiles, engineering goods, leather products, and processed agricultural products, are likely to gain improved market access and stronger export prospects.
By lowering trade barriers and simplifying market entry, the CEPA creates opportunities for smaller Indian businesses to participate more actively in international trade.
Faster Access for Indian Pharmaceutical Companies
A key highlight of the agreement is the healthcare and pharmaceutical provision.
Indian generic medicines that have already received approval from leading global regulatory authorities will now be eligible for accelerated marketing authorisation in Oman. The approval process is expected to be completed within 90 days, significantly reducing regulatory delays.
This provision is expected to:
Improve access to affordable medicines in Oman
Expand export opportunities for Indian pharmaceutical manufacturers
Strengthen healthcare cooperation between the two countries
Enhance the presence of Indian healthcare products in the Gulf region
Given India’s position as one of the world’s largest producers of generic medicines, the measure could create substantial opportunities for pharmaceutical exporters.
Relief for Marble Industry
Another important outcome of the agreement is Oman’s decision to lift its long-standing restriction on the export of unpolished marble.
The change is expected to benefit businesses involved in stone processing and value-added manufacturing, particularly in states such as:
Rajasthan
Andhra Pradesh
Manufacturers and artisans in these regions are likely to gain access to additional raw material supplies, supporting production and exports.
Oman Emerges as Strategic Trade Gateway
Oman’s geographic position gives it significant strategic importance for Indian businesses seeking access to broader regional markets.
The country’s major ports, including:
Port of Sohar
Port of Duqm
Port of Salalah
serve as important logistics and transshipment hubs connecting the Gulf, Africa, Europe, and the Indian Ocean region.
The CEPA is expected to encourage Indian companies to leverage Oman’s infrastructure to expand operations across:
Gulf Cooperation Council (GCC) countries
East African markets
Middle Eastern economies
Global maritime trade routes
Improved logistics connectivity may also enhance supply chain efficiency and reduce transportation costs.
Expanded Services and Professional Mobility
The agreement extends beyond goods trade and includes commitments related to services and workforce mobility.
The CEPA facilitates temporary movement for:
Business visitors
Intra-corporate transferees
Independent professionals
Contractual service providers
These provisions are expected to support greater collaboration between businesses and create new opportunities for Indian professionals working across sectors such as technology, engineering, consulting, healthcare, and financial services.
Part of India’s Broader Trade Strategy
The India-Oman CEPA forms part of India’s larger effort to expand its network of trade agreements and strengthen economic partnerships with key global markets.
In recent years, India has concluded trade agreements covering several developed economies and continues negotiations with major partners and regional blocs. The Oman agreement further reinforces India’s focus on enhancing export competitiveness, improving market access, and integrating with global value chains.
Conclusion
The implementation of the India-Oman Comprehensive Economic Partnership Agreement marks a significant advancement in bilateral economic relations. By providing duty-free access to almost all Indian exports, improving pharmaceutical approvals, enhancing professional mobility, and leveraging Oman’s strategic location, the agreement creates substantial opportunities for businesses, exporters, and investors. As trade flows expand and commercial cooperation deepens, the CEPA is expected to play an important role in strengthening India’s economic engagement with the Gulf region and beyond.
Summary:
India and Oman have officially implemented the Comprehensive Economic Partnership Agreement (CEPA) from June 1, 2026, creating one of India’s most comprehensive trade partnerships in the Gulf region. The agreement grants duty-free access to more than 99% of Indian exports entering Oman and covers 98% of Oman’s tariff lines. The pact is expected to boost exports, strengthen MSMEs, improve pharmaceutical market access, enhance professional mobility, and position Oman as a strategic gateway for Indian businesses targeting the Gulf, Africa, and global markets.
Disclaimer:
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