New Delhi, Dec 18 (UNI) India and Oman on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA), marking a major step toward strengthening bilateral economic relations and deepening India’s engagement with the Gulf region.
The agreement was signed by union Minister for Commerce and Industry Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion Qais bin Mohammed Al Yousef.
Welcoming the agreement, Piyush Goyal expressed gratitude to Prime Minister Narendra Modi for his visionary guidance, stating that the India-Oman CEPA strengthens historic ties, unlocks near-universal duty-free access for Indian goods, expands services opportunities, enhances professional mobility, and promotes inclusive growth while safeguarding national interests.
“A landmark element of the Agreement is Oman’s first-ever commitment on Traditional Medicine, creating new opportunities for India’s AYUSH and wellness ecosystem in the Gulf region. This is a balanced and ambitious agreement that will boost bilateral trade, strengthen supply chains, create employment, and deepen long-term economic partnership, in line with India’s vision of inclusive and sustainable growth,” Piyush Goyal said.
“This Comprehensive Economic Partnership Agreement (CEPA) marks an important milestone in India’s engagement with the Gulf region and reflects the shared commitment to deepen bilateral economic integration. Oman is an important strategic partner in the region and is a key gateway for Indian goods and services to the wider Middle East and Africa,” Ministry of Commerce & Industry said in a statement.
Nearly 7 lakh Indian nationals reside in Oman, including Indian merchant families with a presence of over 200-300 years, contributing significantly to Oman’s economy and society. Indian enterprises have built a strong presence in Oman, with over 6,000 Indian establishments operating across sectors. Annual remittances of around USD 2 billion further reflect the depth of economic engagement, it added.
“Bilateral trade between India and Oman stands at over USD 10 billion, with strong potential for expansion under the CEPA framework.”
Under the agreement, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to the country.
Major labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles will receive full tariff elimination, with immediate benefits on 97.96% of tariff lines.
India, in turn, will liberalise tariffs on 77.79 per cent of its total tariff lines, covering 94.81% of imports from Oman by value.
For sensitive products of export interest to Oman, India has largely adopted a tariff-rate quota (TRQ) approach.
Several sensitive sectors, including dairy, tea, coffee, rubber, tobacco, gold and silver bullion, jewellery, select labour-intensive goods, and metal scrap, have been kept in the exclusion list to safeguard domestic interests, as per the Commerce Ministry statement.
The agreement also delivers significant gains for the services sector, a key driver of India’s economy. Oman’s global services imports stand at USD 12.52 billion, with India accounting for just 5.31 per cent, indicating substantial untapped potential.
Oman has made wide-ranging commitments across sectors such as computer-related services, business and professional services, audio-visual services, research and development, education, and health services.
A major highlight of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has made extensive commitments under Mode 4, increasing the quota for intra-corporate transferees from 20% to 50% and extending the permitted stay for contractual service suppliers from 90 days to two years, with a possible two-year extension.
Liberalised entry and stay conditions have also been provided for skilled professionals in sectors such as accountancy, taxation, architecture, and medical services.
The agreement allows 100% foreign direct investment by Indian companies in key services sectors in Oman through commercial presence. Both sides have also agreed to hold future discussions on social security coordination once Oman implements its contributory social security system.
A landmark feature of the CEPA is Oman’s commitment on traditional medicine across all modes of supply, the first such comprehensive commitment made by any country, opening new opportunities for India’s AYUSH and wellness sectors in the Gulf region. The agreement also addresses non-tariff barriers that restrict real market access despite tariff concessions.
Notably, this is Oman’s first bilateral trade agreement with any country since it signed an agreement with the United States in 2006.
India-Oman CEPA to open up new avenues for trade, services and professional mobility
