India is set to eliminate import duties on key Omani energy goods, including crude oil and liquefied natural gas (LNG), as part of the Comprehensive Economic Partnership Agreement (CEPA) signed on December 18, 2025. This move is expected to boost trade and strengthen economic ties between the two nations. The agreement, which was finalized in Muscat, reflects India's broader strategy to diversify its trade relationships and deepen engagement with Middle Eastern economies.
Under the CEPA, India will remove duties on a range of Omani products, including crude oil, LNG, urea, and other items such as vessels and motor gasoline. The removal of these duties aims to benefit both Indian consumers and Omani exporters by reducing costs and enhancing market access. Oman, in turn, has committed to granting duty-free access to over 98% of its tariff lines, covering nearly all Indian exports by value. India will reduce or eliminate tariffs on approximately 78% of its tariff lines, accounting for almost 95% of imports from Oman.
The CEPA is expected to be implemented within the next three months. It establishes a framework for tariff liberalization across goods trade, with a phased elimination of duties on certain items like petroleum bitumen, natural gypsum, and aluminum ingots. Duties will be immediately eliminated on goods such as lifeboats, anhydrous ammonia, and sulfur upon implementation of the agreement.
Bilateral trade between India and Oman currently exceeds $10 billion annually. In fiscal year 2025, India's imports from Oman were valued at $6.6 billion, primarily consisting of crude oil, LNG, and fertilizers. The CEPA is designed to expand trade volumes, enhance investment flows, and reduce market access barriers between the two countries.
The agreement also includes commitments in services, with Oman opening sectors such as IT, professional services, education, healthcare, and research. It aims to ease temporary entry for Indian professionals and streamline pharmaceutical approvals, which could reduce regulatory costs for Indian firms operating in Oman.
The CEPA is viewed as a significant step in strengthening the long-standing relationship between India and Oman. India's Minister of Commerce & Industry, Mr. Piyush Goyal, described the agreement as a "watershed moment," emphasizing its role in improving trade by removing customs duties and providing Omani exporters with easier access to the Indian market. Oman's strategic location is expected to serve as a hub for wider access to the GCC markets, Eastern Europe, Central Asia, and Africa.
