India and Oman on Wednesday signed a Comprehensive Economic Partnership Agreement (CEPA), marking a significant expansion of bilateral trade and economic cooperation between the two countries, the Ministry of Commerce and Industry said.
This is the second free trade agreement signed by India in the last six months, following the agreement with the United Kingdom, and is part of India’s broader strategy to deepen trade ties with non-competing developed and strategic economies.
Under the pact, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to Oman. All major labour-intensive sectors, including gems & jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles receive full tariff elimination.
Out of the above, immediate tariff elimination is being offered on 97.96 per cent tariff lines.
The agreement is expected to strengthen India’s engagement with the Gulf region, expand bilateral trade beyond the current $10 billion, and support employment generation, MSMEs, artisans and service professionals.
The agreement also includes provisions on traditional medicine, pharmaceutical approvals, halal certification, organic products and standards cooperation.
Setting new benchmarks
Speaking at the India-Oman Business Forum, Prime Minister Narendra Modi urged business leaders from both the countries to fully realise the potential of the CEPA, describing it as a blueprint for deeper trade, investment and innovation ties between the two countries.
“We have to take the India-Oman partnership to the next level. For this, the business world of both countries will have to set big goals.We have to create new benchmarks in the fields of green hydrogen, green ammonia, solar power, energy storage and smart grid,” he said.
He also affirmed that India was on track to become the world’s third-largest economy, supported by policy predictability, governance reforms and investor confidence. He noted that India recorded over 8 per cent growth in the last quarter despite global uncertainty, reflecting the resilience of its economy. Union Commerce and Industry Minister Piyush Goyal said, “The India-Oman CEPA strengthens the historical strong ties of India with Oman and signifies an ambitious and balanced economic framework that significantly enhances opportunities for Indian exporters and professionals. It unlocks nearly universal duty free access for Indian goods in the Omani market, expands services commitments across key high growth sectors, and ensures greater mobility for Indian professionals.”
