The India–Oman Comprehensive Economic Partnership Agreement (CEPA) has come into force, ensuring duty-free access for Indian products to the Omani market. A wide-range of Indian exports—including textiles, leather goods, footwear, gems and jewellery, engineering products, plastics, furniture, agricultural produce, pharmaceuticals, medical devices and automobiles—will now enter Oman without customs duties.
Under the agreement, 98.08 per cent of products on which Oman levies customs duties will be eligible for duty-free import from India. As a result, 99.38 per cent of India’s export value to Oman will now be free of tariffs.
For latest news and analyses on Middle East, visit: Yello! Middle East
The landmark trade pact was signed in the presence of Prime Minister Narendra Modi and Oman’s Sultan Haitham bin Tarik by India’s Minister of Commerce and Industry, Piyush Goyal, and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef.
Goyal said the agreement will significantly strengthen India’s micro, small and medium enterprises (MSMEs) and support artisans and workers in the handicrafts sector. It is expected to boost employment and expand job opportunities, while also benefiting women-led enterprises.
At the same time, the Ministry of Commerce clarified that the agreement includes special safeguard provisions to ensure that opening up duty-free market access does not adversely affect Indian farmers and small entrepreneurs.
CEPA is also set to expand and accelerate India’s services trade. Key sectors such as information technology, business and professional services, research and development, education, healthcare, and audio-visual services will gain duty-free access to the Omani market.
A major highlight of the agreement is the extension of the stay period for professionals travelling to Oman to provide contractual services. The permissible stay has been increased from the current 90 days to two years, with an option to extend for an additional two years. This will particularly benefit IT professionals, consultants, teachers, doctors and researchers, enabling them to work continuously in Oman for up to four years without repeated short-term exits. Indian companies will also be able to deploy their skilled personnel in Oman for longer durations.
With smoother mobility between the two countries, employment opportunities are expected to expand in sectors such as accountancy, taxation, architecture, medical and allied services. Indian companies will also gain access to 100 per cent foreign direct investment (FDI) opportunities in key services sectors.
The agreement further strengthens cooperation in standards and conformity assessment. Both countries will mutually recognise Halal certification, and Oman has accepted India’s National Programme for Organic Production (NPOP). Indian organic products certified under NPOP will not require re-inspection or re-certification in Oman, making quality compliance simpler and more efficient.
In the pharmaceutical sector, Indian medicines approved by global regulators such as the US FDA, the European Medicines Agency (EMA) and the UK’s MHRA will be allowed direct market access in Oman, eliminating the need for additional local approvals. This will enable Indian pharmaceutical companies to supply medicines to Oman at lower costs.
