India- Oman Free Trade Agreement: India- Oman Free Trade Agreement has become operational now from 01 June, 2026. In fact, this will give Indian exporters duty- free to 99.4% shipments to the gateway of Gulf. In fact, it will also give access to the East African markets. The India- Oman (Comprehensive Economic Partnership Agreement) has marked a defining milestone in India’s engagement with Oman.
It reflects PM Modi’s vision of forging trade partnerships with neighbouring friend nations. Moreover, it is certainly going to benefit farmers, fishermen, youth, women, entrepreneurs and small and medium. Both India – Oman signed CEPA on 18 December, 2026. Both PM Modi and Sultan Haitham Bin Tarik Al Said were present in Muscat.
Furthermore, it took six months for both countries to complete their regulatory processes to operationalize CEPA. Similarly, its negotiations had already started in November, 2023. On the first day itself, India sent 10 consignments of agriculture, engineering goods and gems & Jewellery products. After this, the shipments went from Mumbai, Kolkata and Chennai under the concessional tariffs.
According to the government data, India – Oman bilateral merchandise trade stood at $ 11.2 billion in 2025-26. Overall, it rose 5.56% up from $ 10.61 billion. The balance of trade is in favour of Oman.Most importantly, in FY 26, India exported goods worth $4 billion to Oman. Whereas, India imported $7.17 worth of merchandise from the Sultanat of Oman.
India’s crucial exports from Oman are Petroleum Crude & products, salt, sulphur, earth and stone. In addition, there are ores, slag, and ash, chemicals, fertiliser and plastic from Oman.
- If wanted to know more about Trade Agremment : then click on the link : ”About India China Trade Agreement‘‘
Benefits of India Oman Free Trade Agreement
There are innumerable benefits of India – Oman free trade agreement.
Moreover, India- Oman Free Trade Agreement has become operational now from 01 June, 2026. Agriculture, Textiles, Gems and Jewellery, Pharmaceuticals, Engineering Goods, Footwear and Automobiles are ready for Strong Export Expansion. Moreover, breakthrough in trade removes non-tariff barriers and fast-track market access for Indian products.
Oman covers 127 Services Sub-Sectors, Unlocking Opportunities for Indian Professionals, Startups and knowledge-led Enterprises. In other words, there is a dedicated Professional Commitments for Engineers, Doctors, IT Professionals, Teachers and Consultants. To Protect Farmers and Domestic Industry, Sensitive Sectors are excluded from Market Access including Dairy, Cereals, Fruits, Vegetables, Edible Oils, Oilseeds, Rubber, Leather and Spices.
- It will support job creation, drive investment and enable Indian enterprises to compete. Likewise, this will be on an equal footing with suppliers from countries enjoying preferential market access”. To sum it up, products protected under the exclusion list include dairy products, cereals, fruits, vegetables and edible oils.
- Clusters in Surat (diamonds), Jaipur (gemstones), Mumbai, Kolkata and Chennai are there to capture this growth. On top of this, there are new opportunities open for gems and jewellery, and employment gains are in favour of India. Moreover, duty elimination strengthens India’ products such as honey, condiments, cashews, basmati rice, butter and sweet biscuits. Furthermore, crucial export items include basmati and rice, cashew kernels, onions, potatoes, soybean meal, butter etc. Oman is an important destination for India’s engineering exports. In addition, it covers machinery, electrical equipment, automobiles, iron and steel, and non-ferrous metals. You can expect gains in iron and steel for infrastructure projects, electric and industrial machinery, motor vehicles and copper products.
India - Oman Trade Growth
India – Oman trade growth crossed USD 11.18 billion in FY 2025–26. Likewise, this upward trajectory accelerates the India-Oman Comprehensive Economic Partnership Agreement (CEPA). Overall bilateral trade has shown an annual growth rate of 10.82% in recent years.
Refined petroleum, naphtha, iron/steel, machinery, and rice are the main exports. In addition, petroleum products, urea, chemicals, and unwrought aluminium are the main imports. Furthermore, (CEPA) grants India zero-duty access on 98.08% of Oman’s tariff lines. It covers 99.38% of the value of India’s exports.
Moreover, crucial labour-intensive and export-oriented sectors enjoy immediate duty-free access. The agreement gets regulatory approvals, & standards and certifications get recognition. To sum it up, this results in lowering of compliance barriers. The CEPA framework establishes architecture for digital services, professional mobility, and logistics.
Conclusion
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) is a landmark trade pact. It officially came into effect on June 1, 2026. In fact, this establishes a deep, long-term economic and strategic alliance between the two nations across goods, services, and investments. India secures immediate, zero-duty access for 99.38% of its exports to Oman. It covers 98.08% of Omani tariff lines. Moreover, this significantly elevates India’s previous Most Favoured Nation (MFN) status.
Here only 15.33% of exports entered duty-free. In addition, the duty-free concessions support Indian MSMEs. They enhance price competitiveness in labour-intensive industries. Furthermore, they include gems and jewellery, textiles, leather, footwear, agriculture, and engineering goods. The CEPA fast-tracks marketing authorizations for Indian medicines.
Most importantly, beyond merchandise, the agreement facilitates the extended stay and movement of Indian professionals in Oman. It also incorporates recognition for traditional medicine into a Gulf trade pact.
Falcon Freight streamlines customs clearance, and manages documentation to claim zero-duty benefits. This optimizes supply chains through Omani ports like Sohar and Salalah. Above all, they utilize the mutual recognition of India’s Export Inspection Council certificates. This helps to speed up port processing and reduce compliance.
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