India–Oman CEPA enters into force on 1 June 2026
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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.
- 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)
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.
Who gains in goods trade?
| Sector | What changes |
|---|---|
| Marine products | all duty-free; earlier duties up to 5% |
| Gems and jewellery | duties up to 5% removed; exports seen rising six-fold to USD 150 million in three years |
| Agriculture | India is Oman’s second-largest farm supplier (17.8% share); rice, cashew, eggs, meat gain |
| Engineering and electronics | all duty-free; motor vehicles’ 5% tariff removed |
| Pharmaceuticals | zero duty plus faster approvals |
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.
What do the numbers show?
| Item | Figure |
|---|---|
| Bilateral trade 2025-26 | USD 11.18 billion |
| Oman’s import market | nearly USD 28 billion |
| Services trade 2024 | USD 863 million (India surplus USD 447 million) |
| India’s share of Oman’s services imports | 5.31% |
| India–Oman joint ventures | nearly 6,000 |
Why does the India–Oman CEPA matter?
| Angle | What to note |
|---|---|
| Trade | Near-total duty-free access for labour-intensive exports. |
| Services and jobs | Binding mobility for Indian professionals. |
| Strategy | A Gulf gateway via Sohar, Duqm and Salalah to the GCC and East Africa. |
| Farmers | Sensitive items excluded; tariff rate quotas and minimum import prices kept as safeguards. |
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.
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.
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.
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.
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
- 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.
- The partner is a gateway to the Gulf and Africa; textiles, gems and engineering gain most.
Quotable data pointit gives zero-duty access for 99.38% of India's exports to Oman.
PIB: Commerce: India–Oman CEPA, 1 Jun 2026
Exam angle
Prelims: India's FTAs in force.
Practice MCQs
Original practice questions (not PYQs).
The India–Oman CEPA entered into force on
Answer (c) & explanation
PIB (Commerce), 1 Jun 2026.
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.
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