The signing of the India–Oman Comprehensive Economic Partnership Agreement (CEPA) marks a significant step in strengthening India’s trade and economic engagement with the Gulf region, with experts projecting improved market access, employment generation and expanded opportunities for Indian businesses across goods and services.
Trade bodies and policy experts say the agreement provides Indian exporters with near-universal duty-free access to the Omani market, sharply enhancing competitiveness for a wide range of sectors. The Federation of Indian Export Organisations (FIEO), the apex exporters’ body, described the CEPA as a transformational trade pact that would support inclusive and employment-led growth.
According to FIEO, the agreement grants zero-duty access on over 98 per cent of Oman’s tariff lines, covering more than 99 per cent of India’s exports by value. This is expected to significantly reduce trade barriers and strengthen India’s export position in the Gulf region.
Labour-intensive sectors are expected to be the primary beneficiaries. These include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, plastics, furniture, agricultural and food products, pharmaceuticals, medical devices, automobiles and sports goods. The agreement is also expected to support micro, small and medium enterprises (MSMEs), artisans, women-led enterprises and farmers by improving export viability and demand.
The CEPA’s scope extends beyond merchandise trade. It includes comprehensive commitments in services, covering 127 sub-sectors such as information technology, computer-related services, business and professional services, research and development, education, healthcare and audio-visual services. These provisions are expected to open new opportunities for Indian service providers in the Omani market.
Experts note that Oman’s strategic geographic position makes it a key gateway to the Gulf and African markets. The agreement is expected to help Indian exporters integrate more effectively into regional value chains, diversify export destinations and expand India’s overall trade footprint.
With bilateral trade between India and Oman already exceeding $10 billion, the CEPA is seen as providing a strong platform for accelerating merchandise trade growth. Analysts believe the reduction in tariffs and improved regulatory access could further increase trade volumes in the coming years.
The agreement also facilitates enhanced mobility for Indian professionals and allows 100 per cent foreign direct investment in major services sectors in Oman through commercial presence. This is expected to create new avenues for outbound investment from India while strengthening service-sector collaboration between the two countries.
Observers point out that the India–Oman CEPA builds on India’s recent trade engagements in the Gulf, following the free trade agreement signed with the United Arab Emirates in 2022. Oman’s decision to enter into a comprehensive trade pact with India is viewed as a reflection of growing confidence in India as a long-term economic and business partner.
Overall, trade experts say the CEPA aligns with India’s broader strategy to deepen economic ties with the Gulf region, enhance export competitiveness and promote sustained growth across both goods and services sectors.
