The North News
New Delhi, December 19
India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a significant expansion of economic ties between the two countries and strengthening India’s engagement with the Gulf region. The agreement was signed by India’s Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef, under the leadership of Prime Minister Narendra Modi.
The CEPA provides near-total duty-free access for Indian goods to the Omani market, with Oman offering zero-duty access on more than 98% of its tariff lines, covering over 99% of India’s current exports to the country. Labour-intensive sectors such as textiles, gems and jewellery, leather, footwear, engineering goods, pharmaceuticals, medical devices and automobiles are among the main beneficiaries.
India, in return, has offered tariff liberalisation on about 78% of its tariff lines, covering nearly 95% of imports from Oman by value, while keeping sensitive sectors — including key agricultural products, precious metals and certain labour-intensive goods — outside the agreement.
The pact also includes wide-ranging commitments in services, a key driver of India’s economy. Oman has opened several sectors, including information technology, professional and business services, education, health and research, creating new opportunities for Indian service providers.
A notable feature of the agreement is the enhanced mobility framework for Indian professionals. Oman has increased quotas for intra-corporate transferees and extended the permitted stay for contractual service suppliers, alongside more liberal entry conditions for skilled professionals in sectors such as accountancy, architecture and healthcare.
The CEPA allows 100% foreign direct investment by Indian companies in major services sectors in Oman and includes provisions to address non-tariff barriers that restrict market access. Oman has also made a landmark commitment on traditional medicine, creating opportunities for India’s AYUSH and wellness sectors.
Bilateral trade between India and Oman currently exceeds $10bn, supported by a large Indian diaspora of around 700,000 people. The agreement is expected to boost trade, investment, employment and long-term economic cooperation between the two countries.
This is the second free trade agreement signed by India in the past six months and the first bilateral trade pact signed by Oman since 2006.
