India and Oman are poised to implement their Comprehensive Economic Partnership Agreement (CEPA) within the next three months, according to Commerce and Industry Minister Piyush Goyal. This timeline is significantly faster than previous trade agreements, such as the Oman-United States trade agreement, which took nearly three years to implement after being finalized in 2006.
The CEPA, signed on December 18, 2025, during Prime Minister Narendra Modi's visit to Muscat, marks a significant milestone in bilateral economic relations. Under the agreement, Oman will offer zero-duty access on over 98% of its tariff lines, covering 99.38% of India's exports to the country. This will benefit major labor-intensive sectors, including gems and jewelry, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles, all of which will enjoy full tariff elimination. Currently, these goods attract import duties ranging from 5% to as high as 100% in Oman.
In return, India will offer tariff concessions on 77.79% of its tariff lines, accounting for 94.81% of imports from Oman by value. For products sensitive to India but of export interest to Oman, market access will largely be facilitated through tariff-rate quotas (TRQs). India has excluded several sensitive products from concessions to safeguard domestic industries. These include agricultural items like dairy products, tea, coffee, rubber, and tobacco, as well as gold and silver bullion, jewelry, certain labor-intensive products like footwear and sports goods, and scrap of various base metals.
The CEPA also includes provisions for automatic approvals within 90 days for Indian pharmaceutical products and manufacturing units already recognized by multiple countries. Furthermore, the pact allows Indian firms to employ 100% Indian staff for their investments in Oman.
Minister Goyal highlighted the potential for Indian businesses to invest in sectors such as steel, energy, education, and healthcare in Oman. He noted the particular interest in Oman to collaborate with India due to its large land banks, especially for projects requiring natural resources. A large steel investment is planned for producing green steel. Opportunities also exist in the energy sector, where energy can be converted into green hydrogen or green ammonia for export.
Oman is also seeking collaboration with India in food security and the space sector. Goyal emphasized that India is only the second country after the US with which Oman has signed a free trade agreement. He also pointed out that Oman's decision to allow exports of raw marble blocks to India for the first time will boost local processing, add value, create jobs, and reduce imports of finished marble.
This agreement reflects India's transformed trade strategy, focusing on countries where it complements rather than competes, opening up opportunities for youth, industries, manufacturing, and services. The CEPA is expected to create significant opportunities, with Oman keen to collaborate with India in areas such as space, food security, pharmaceuticals, and manufacturing. Around 700,000 Indians reside in Oman, sending home approximately Rs 18,000 crore annually as remittances, and the CEPA is poised to further enhance these economic ties.
