GS3 · Trade

India–Oman CEPA enters into force on 1 June 2026

Battle IAS current affairs title card: India–Oman CEPA enters into force on 1 June 2026 (GS3 · Trade, 1 June 2026)
Battle Brief

The India–Oman Comprehensive Economic Partnership Agreement entered into force on 1 June 2026. Signed in Muscat on 18 December 2025, it gives zero-duty access to 99.38% of India’s exports to Oman by value. Oman has opened 127 services sub-sectors, while India kept dairy, cereals, edible oils and other sensitive items out.

Fact File

In force
1 Jun 2026 (signed 18 Dec 2025, Muscat)
India’s exports
99.38% by value duty-free; 98.08% of Oman’s tariff lines
Before CEPA
only 15.33% of India’s exports entered duty-free
India’s offer
77.79% of tariff lines, 94.81% of imports from Oman by value
Services
127 sub-sectors; ICT ceiling raised from 20% to 50%
Trade
USD 11.18 billion in 2025-26 (USD 10.61 billion in 2024-25)
In the news

The India–Oman CEPA: what happened?

Oman is India’s second-largest trading partner in the Gulf and a gateway to the GCC and East Africa through its ports. India is only the second country, after the United States, to have a comprehensive bilateral trade pact with Oman.

  • All zero-duty concessions apply from day one.
  • First consignments of farm goods and gems and jewellery were flagged off from Mumbai, Kolkata and Chennai.
  • Oman will accept certificates of India’s Export Inspection Council; NPOP organic and halal certification are recognised.
  • Medicines approved by USFDA, EMA, UK MHRA or TGA get marketing authorisation within 90 days without prior inspection.
Back Story

Who gains in goods trade?

Sector gains under the India–Oman CEPA (PIB, Commerce, 1 Jun 2026)
SectorWhat changes
Marine productsall duty-free; earlier duties up to 5%
Gems and jewelleryduties up to 5% removed; exports seen rising six-fold to USD 150 million in three years
AgricultureIndia is Oman’s second-largest farm supplier (17.8% share); rice, cashew, eggs, meat gain
Engineering and electronicsall duty-free; motor vehicles’ 5% tariff removed
Pharmaceuticalszero duty plus faster approvals
Back Story

What does the services deal give?

  • Business visitors may stay up to 90 days, independent professionals up to 180 days, and intra-corporate transferees up to 4 years.
  • For the first time in any bilateral FTA, Oman made binding commitments for professionals in accounting, engineering, medicine, IT, education and construction.
  • Future talks are planned on a Social Security Agreement to avoid double contributions.
By the numbers

What do the numbers show?

India–Oman CEPA at a glance (PIB, Commerce, 1 Jun 2026)
ItemFigure
Bilateral trade 2025-26USD 11.18 billion
Oman’s import marketnearly USD 28 billion
Services trade 2024USD 863 million (India surplus USD 447 million)
India’s share of Oman’s services imports5.31%
India–Oman joint venturesnearly 6,000
Why examiners care

Why does the India–Oman CEPA matter?

AngleWhat to note
TradeNear-total duty-free access for labour-intensive exports.
Services and jobsBinding mobility for Indian professionals.
StrategyA Gulf gateway via Sohar, Duqm and Salalah to the GCC and East Africa.
FarmersSensitive items excluded; tariff rate quotas and minimum import prices kept as safeguards.
Fault Lines

What are the challenges in the India–Oman CEPA?

  • Utilisation: exporters must actually use preferences and rules of origin.
  • The Social Security Agreement is only promised for future talks.
  • Oman’s market is small (about USD 28 billion imports), so gains depend on reaching the wider GCC through it.
Road Ahead

What should be done next on the India–Oman CEPA?

  • Help MSMEs use the CEPA through awareness and simple origin certification.
  • Start Social Security Agreement talks early.
  • Use the Oman deal to push wider GCC trade talks.
Exam Radar

What can Prelims ask on the India–Oman CEPA?

  • India–Oman CEPA: signed 18 Dec 2025 (Muscat); in force 1 Jun 2026.
  • 99.38% of India’s exports duty-free; 98.08% of Oman’s tariff lines.
  • Oman services offer: 127 sub-sectors.
  • India is the second country after the USA to have a comprehensive bilateral trade pact with Oman.
  • Excluded by India: dairy, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices.
Answer Lab

How to write about the India–Oman CEPA in Mains

Practice question (15 marks, 250 words): “The India–Oman CEPA goes beyond tariffs.” Examine the goods, services and regulatory features of the agreement and its strategic value.

  • Intro: in force 1 June 2026; 99.38% zero duty.
  • Goods: sector gains; India’s safeguards.
  • Services and mobility: 127 sub-sectors, ICT 50%.
  • Regulatory: EIC, pharma fast track.
  • Strategic: Gulf and East Africa gateway; way forward.
UPPCS Corner

What should UPPCS aspirants note?

  • The release lists Uttar Pradesh among States whose farmers and agri-exporters are expected to benefit; it also names Dasheri among mango varieties gaining duty-free access.

How to use this in Mains

GS-III Effects of liberalisation; trade policy

  1. As per PIB (2026-06-01): the India–Oman CEPA came into force; it gives zero-duty access for 99.38% of India's exports to Oman; India is only the second country after the US to have a comprehensive bilateral trade pact with Oman.
  2. The partner is a gateway to the Gulf and Africa; textiles, gems and engineering gain most.
Quotable data point

it gives zero-duty access for 99.38% of India's exports to Oman.

PIB: Commerce: India–Oman CEPA, 1 Jun 2026

Exam angle

UPSC

Prelims: India's FTAs in force.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

The India–Oman CEPA entered into force on

Answer (c) & explanation

PIB (Commerce), 1 Jun 2026.

Practice · UPSC

Consider: 1. Oman is India's largest trading partner in the Gulf. 2. Dairy products are excluded from India's tariff offer under the CEPA. Which is/are correct?

Answer (b) & explanation

PIB (Commerce), 1 Jun 2026: Oman is India's second-largest Gulf partner; dairy is on the exclusion list.

Quick questions

Questions students ask about this

When did the India–Oman CEPA come into force?

On 1 June 2026; it was signed in Muscat on 18 December 2025.

How much of India's exports get duty-free access in Oman?

99.38% by value, covering 98.08% of Oman's tariff lines.

Which sectors did India protect?

Dairy, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and other key farm products.

What did Oman offer in services?

Commitments in 127 services sub-sectors, with mobility for professionals and an ICT ceiling raised from 20% to 50%.

Keep studying

Official source: PIB: Commerce: India–Oman CEPA, 1 Jun 2026

facts from cited sources only; faculty review pending