India-Oman Comprehensive Economic Partnership Agreement (CEPA)
Overview
On December 18, 2025, India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and economic cooperation. The agreement allows for duty-free access to a significant portion of tariff lines between the two countries.
Key Features of CEPA
- Oman provides India duty-free access to 98.08% of its tariff lines, covering 99.38% of India's exports to Oman.
- India offers liberalised tariffs on 77.79% of its tariff lines, covering 94.81% of imports from Oman.
- Includes concessions beneficial to India's service sector, particularly in worker mobility.
Trade Statistics (2024-25)
- India exported $4.06 billion to Oman, constituting 0.93% of its total exports.
- India imported $6.5 billion from Oman, comprising 0.91% of its total imports.
Significance of CEPA
Prime Minister emphasized that CEPA will revitalize the India-Oman partnership, inspire new trade dynamics, and foster investment opportunities. It serves as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa.
Economic and Employment Impact
- Expected to benefit labour-intensive sectors like gems, textiles, and manufacturing.
- Encourages growth in MSMEs, artisans, and women-led enterprises.
- Supports employment and innovation for youth in both countries.
CEPA's Strategic Elements
- Exclusion of sensitive products like dairy, tea, and tobacco.
- Enhanced mobility for Indian professionals, with increased quotas and extended stay durations.
- Commitments across various services sectors, promoting Indian service providers.
Foreign Direct Investment
Allows for 100% FDI by Indian companies in Oman's major services sectors, expanding India's services industry footprint.
Trade Composition
- Major Indian exports to Oman: Petroleum products (35.1%), processed minerals (9.2%), aircraft and parts (4.3%), cosmetics (3.6%), and basmati rice (3.6%).
- Major imports from Oman: Crude oil and gases (38%), mineral fertilisers (16.3%), acyclic alcohols (6.6%), and ammonia (5.8%).
Future Discussions
Both nations will discuss social security coordination once Oman implements its contributory social security system.
