The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman officially came into effect on Monday, marking a major milestone in bilateral trade. The landmark free trade agreement unlocks immediate duty-free market access for 99.38% of Indian exports to Oman by value, covering 98.08% of Oman’s total tariff lines. Key Indian sectors set to benefit significantly from the elimination of import duties include textiles, engineering goods, gems and jewellery, and agriculture.
The implementation of the pact arrives at a critical juncture for Indian exporters, who have recently faced severe logistical hurdles and trade disruptions in shipping goods to Gulf markets due to the ongoing US-Iran conflict. To mark the historic activation of the deal, the initial commercial consignments capitalizing on the preferential tariffs—including major shipments of agricultural produce, gems, and jewellery—were formally flagged off from hubs in Mumbai, Kolkata, and Chennai.
Under the reciprocal agreement, India has extended tariff concessions on 77.79% of its total tariff lines, accounting for 94.81% of imports from Oman by value. Sensitive commodities of primary export interest to Oman, such as dates, marble, and petrochemicals, will be regulated under a tariff-rate quota (TRQ) based liberalization model. This setup is expected to lower the cost of Omani dates for Indian consumers via quota-based duty concessions.
Indian Commerce and Industry Minister Piyush Goyal hailed Oman as a trusted partner and a strategic gateway to the Gulf and East Africa. Beyond boosting product competitiveness, the CEPA introduces enhanced mobility provisions for Indian professionals and is anticipated to drive robust job creation, attract foreign direct investment, and assist Indian firms in competing effectively against global exporters who already hold preferential market access.