Background and Context
A Comprehensive Economic Partnership Agreement (CEPA) is not merely an agreement to reduce duties. It also includes services, investment, standards and rules for the movement of professionals. The India-Oman CEPA was signed in Muscat on 18 December 2025. It came into force after the internal processes of both countries were completed.
Why in the News
According to the government release (PIB, 1 June 2026), the India-Oman CEPA came into force from 1 June 2026. In the presence of Commerce and Industry Minister Piyush Goyal, the first consignments of agriculture and gems and jewellery were flagged off from Mumbai, Kolkata and Chennai. A separate release of 3 June 2026 stated the benefits for the textiles sector. All the figures of this article are from these very government releases.
Key Facts and Figures
| The agreement | India-Oman Comprehensive Economic Partnership Agreement (CEPA): signed 18 December 2025, Muscat; in force 1 June 2026 (PIB, 1 June 2026) |
|---|---|
| Bilateral trade | $11.18 billion in financial year 2025-26, $10.61 billion in 2024-25. Oman is India's second-largest trading partner in the Gulf region (release). |
| Access for India's exports | Zero duty on 99.38 per cent of India's exports (by value); this covers 98.08 per cent of Oman's tariff lines. Earlier, under the MFN arrangement, only 15.33 per cent of India's exports went duty-free (release). |
| India's offer | India gave concessions on 77.79 per cent of tariff lines, which cover 94.81 per cent (by value) of imports from Oman. Dairy, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather and spices were kept out. Tariff-rate quotas and minimum import prices are also present on selected products (release). |
| Services | Oman gave commitments in 127 services sub-sectors. For the first time in any bilateral FTA, there are binding commitments on categories of professionals such as accountancy, engineering, medicine, IT, education and construction (release). |
| Mobility | Business visitors for 90 days, independent professionals for 180 days and intra-company transferees for up to 4 years will be able to stay in Oman. There is a provision for talks on a social security agreement in the future (release). |
| Medicines | Marketing authorisation within 90 days for products approved by the USFDA, EMA, UK MHRA and TGA; where inspection is necessary, the target is 270 working days (release). |
| Textiles | Immediate zero duty on all 945 tariff lines of textiles and apparel; earlier there was a 5 per cent MFN duty (PIB, 3 June 2026). |
Three Different Bases: Goods, Services and Rules
The market for goods: The two sides' concessions are different. India got zero duty on 99.38 per cent of export value, while India gave concessions on 94.81 per cent of the value of imports from Oman. India's concession keeps sensitive agricultural products out, which is the reasoning for protecting domestic farmers.
Services and professionals: The figures for services trade are separate: in 2024, bilateral services trade was stated as $863 million and India's surplus as $447 million. According to the release, India's share in Oman's total services imports is only 5.31 per cent. So the scope in services has been stated as large.
Rules and standards: The recognition of EIC certificates, NPOP and halal, the chapters on sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT), and the time limits for goods clearance are for reducing non-tariff barriers. Even when the duty becomes zero, the barrier of standards and certification can remain, so this part matters.
Why This Subject Matters
The gateway to the Gulf and Africa: The release describes Oman's Sohar, Duqm and Salalah ports as a route of access to the GCC and East Africa. This is the government's reasoning; we do not yet have figures of its practical effect.
The new generation of FTAs: In India's recent agreements, services, the mobility of professionals and regulatory cooperation have become as important as duties. This comparison is ours, not the release's.
Points of Debate and Cautions
Estimates and results: The release's estimates, such as gems and jewellery exports growing six times to $150 million in three years and engineering exports projected to reach $1.3-1.6 billion by 2030, are the government's estimates. Do not treat them as results.
Reading the numbers: The 99.38 per cent is by value, not by tariff lines (Oman's 98.08 per cent lines). Reading the two mixed together is not right.
Sources and limitations: We read only PIB's two releases (1 and 3 June 2026). We have not opened the agreement's full text and the tariff schedules. We have not checked the trade figures after it came into force.
Difference from an earlier article: Our article on the India-UK CETA is about the agreement with Britain; this article is about a different agreement with Oman.
Way Forward
Read everything in this article as the state of the government releases of 1 to 3 June 2026. The change in trade after it came into force, the talks on the social security agreement and the practice of certification recognition have not been checked by us.
The Difference in the Concepts
Keep four things separate: (1) the agreement's provisions as stated in the release; (2) the government's estimates and expectations; (3) the statements of the minister and the secretary; and (4) our interpretations.
The Mains View
GS-II: international relations, the Gulf region; GS-III: exports, trade agreements. In the answer, keep the agreement's provisions and the government estimates separate.
Answer Outline
Introduction: What a CEPA is.
Main Body: The market for goods; India’s offer and safeguards; services and mobility; rules and standards; estimates versus results.
Conclusion: Assess opportunities in goods, services and professional mobility alongside safeguards for sensitive sectors and conditions on standards and certification. Keep percentages of export value and tariff lines distinct, and do not treat government projections as actual trade outcomes.
Sources
- PIB, India and Oman launched the CEPA (1 June 2026), Ministry of Commerce and Industry
- PIB, export boost for textiles MSMEs from the CEPA (3 June 2026)
All facts are from these two government releases. They are the government's side, and the estimates should not be read like facts.
Remember: According to PIB's releases, the India-Oman CEPA came into force from 1 June 2026; 99.38 per cent of India's export value got zero duty, and there are commitments on services and the mobility of professionals too. The benefit figures are the government's estimates.
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