New Delhi (ABC Live): The India–Oman Comprehensive Economic Partnership Agreement, or India–Oman CEPA, entered into force on 1 June 2026. It marks a key step in India’s Gulf trade policy. Moreover, it provides Indian exporters with wide duty-free access to Oman. It opens new opportunities in goods, services, professional movement, medicines, food products, marine exports, gems and jewellery, engineering goods, and logistics.

According to the official material reviewed by ABC Live, India has secured zero-duty access for 99.38% of its exports to Oman by value. In addition, this access covers 98.08% of Oman’s tariff lines.

However, the agreement should not be read only as a success story. It gives India a strong opening, but it does not guarantee automatic export growth. Therefore, its real value will depend on how India turns legal market access into actual trade gains.

Key Points

Why ABC Live Is Publishing This Report Now

ABC Live is publishing this report now because the India–Oman CEPA has moved from promise to practice. Since the agreement has entered into force, exporters, MSMEs, farmers, workers, professionals, drug makers, logistics firms, and policymakers must now assess its real effects.

Moreover, the timing is important. Global trade is changing due to supply chain shifts, tensions in West Asia, Red Sea risks, and the search for safer trade routes. In this setting, Oman is not just another market. Rather, it is a port-based trade gateway.

ABC Live previously analysed India’s broader Gulf trade aims in its report on the India–GCC FTA. The India–Oman CEPA now gives that wider Gulf plan a country-level platform.

Therefore, ABC Live is analysing the CEPA as a public-interest issue. It affects trade, jobs, farmers, MSMEs, services, customs rules, and India’s place in the Gulf economy.

What Has Happened?

The India–Oman CEPA entered into force on 1 June 2026 after both countries completed their internal steps. Earlier, the agreement was signed on 18 December 2025 in Muscat.

The official material states that the agreement was brought into operation in the presence of Union Commerce and Industry Minister Piyush Goyal and Oman’s Ambassador to India, Issa Saleh Al Shibani.

Further, the first consignments benefiting from CEPA included agricultural and gems and jewellery exports from Mumbai, Kolkata and Chennai.

The government has projected that the agreement will raise bilateral trade, exports, jobs and strategic economic ties. India–Oman bilateral trade reached USD 11.18 billion in FY 2025–26, compared with USD 10.61 billion in FY 2024–25.

Legal / Policy Background

A CEPA is wider than a simple tariff-cut agreement. It usually covers goods, services, investment support, movement of professionals, standards, customs steps, and regulatory cooperation.

In this case, the India–Oman CEPA covers:

• trade in goods;
• trade in services;
• professional movement;
• regulatory cooperation;
• SPS and TBT measures;
• non-tariff barrier safeguards;
• investment support;
• customs and certification cooperation.

The official text describes the CEPA as “tariff liberalisation PLUS” because it goes beyond duty cuts. It also seeks to provide greater certainty to firms operating across both markets.

This broader design matters because modern trade barriers often do not arise solely from customs duties. Instead, exporters face problems with testing, labelling, product approval, licences, customs paperwork, and local regulations.

Data and Evidence

Trade and Market Access Dashboard

The jump from 15.33% MFN duty-free access to 99.38% CEPA-based duty-free access is the agreement’s biggest trade gain.

Sectoral Opportunity Table

ABC Live Analysis

1. The Agreement Gives India a Strong Tariff Advantage

The India–Oman CEPA gives Indian exporters a clear price edge in Oman. Since many Indian goods previously faced duties of up to 5%, the removal of these duties can directly improve their market position.

This matters more in sectors with small profit margins. For example, marine exports, processed food, jewellery, textiles and engineering goods often compete on price, quality and delivery speed. Therefore, even a small duty cut can help Indian exporters win buyers.

However, tariff access alone is not enough. Indian exporters must still meet quality norms, packing rules, delivery timelines and buyer needs.

2. Oman’s Real Value Goes Beyond Its Own Market

Oman’s domestic market is useful, but it is not very large. Therefore, the real value of the CEPA lies in Oman’s role as a gateway to the GCC and East Africa.

The official material highlights Oman’s logistics hubs at Sohar, Duqm and Salalah. These ports can help Indian exporters reach nearby markets more easily.

Thus, the CEPA becomes more important when India uses Oman as a trade base rather than only as a final market. If Indian firms use Oman for storage, processing, shipping and re-export, the agreement can support India’s wider Gulf trade plan.

3. Labour-Intensive Sectors May Gain, But Support Is Essential

The agreement may help sectors that employ many workers. These include textiles, gems and jewellery, marine products, processed food, footwear and engineering goods.

This is important because these sectors support workers in coastal states, small towns, export clusters and MSME units. Moreover, export growth in these sectors can create income beyond large cities.

However, India should not assume that market access will automatically create jobs. Job gains will depend on whether exporters get real support.

Without this support, larger firms may take most of the benefit, while smaller firms may remain outside the trade chain.

4. Pharmaceutical Gains Could Be Important

The pharmaceutical part may become one of the most useful parts of the agreement. The official material states that products approved by the US FDA, EMA, UK MHRA, and TGA may receive marketing approval in Oman within 90 days, subject to conditions.

This can reduce delays for Indian drug makers. Also, it can give them greater certainty about Oman’s healthcare market.

However, India must monitor how this rule works on the ground. If local delays continue, the 90-day promise may not help firms much.

5. Services Access Looks Strong, But Practice Will Matter

The agreement gives India a good opening in the services sector. Oman has offered commitments across 127 service sub-sectors, including IT, professional services, education, health, construction, finance, telecom and tourism.

This is useful because India has a strong services base. Moreover, Indian professionals can gain if Oman gives real access in these areas.

Yet, services trade depends on more than treaty words. Indian professionals may still face:

• licence rules;
• degree recognition issues;
• visa limits;
• local sponsor needs;
• labour-market conditions;
• sector approvals.

Therefore, India must track whether engineers, doctors, IT workers, teachers and consultants actually get easier entry.

6. Domestic Safeguards Are Needed

India has protected sensitive sectors such as dairy, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and key farm products.

This protection is important because free trade deals can hurt farmers and small producers if imports rise too fast. Therefore, the exclusion list is a necessary safeguard.

However, protection on paper is not enough. India must also ensure that tariff cuts do not become a backdoor for goods from other countries.

Risks and Concerns

1. Rules of Origin Risk

The biggest legal risk is misuse of rules of origin. If goods from third countries enter India through Oman after only minor processing, Indian firms may suffer.

Therefore, customs officers must strictly check origin claims.

2. MSME Capacity Gap

The CEPA may remain underused if MSMEs cannot handle export papers, testing, product standards, foreign contracts, shipping and payment recovery.

Therefore, export bodies should create sector-wise support cells for small firms.

3. Too Much Faith in Projections

The official material projects strong gains in gems and jewellery, engineering goods, medicines and other sectors.

These projections may be useful. However, they are not guaranteed results. Actual gains must be checked through yearly trade data.

4. Non-Tariff Barriers May Continue

Even after duty removal, exporters may still face delays in inspection, port clearance, labelling, compliance with local rules, payment, and distribution.

Therefore, India should build a simple complaint system under the CEPA framework. This will help exporters report problems quickly.

5. Regional Instability

Oman’s location gives India a trade advantage. However, West Asian tensions, Red Sea risks and Strait of Hormuz concerns can raise shipping and insurance costs.

Thus, India must support the CEPA with safer shipping plans and wider maritime planning.

What Happens Next?

India should now move from agreement signing to implementation.

Key Steps India Should Take

ABC Live Conclusion

The India–Oman CEPA is useful for trade and important for strategy. It gives Indian exporters wide duty-free access. It also strengthens India’s Gulf presence, opens space for services, and may create a trade bridge to East Africa.

However, the agreement should not be judged only by tariff numbers. The real test will come from implementation.

If India supports MSMEs, enforces origin rules, improves testing capacity, tracks professional access and builds a port strategy around Oman, the CEPA can become a real trade gateway.

However, if implementation remains weak, the agreement may stay a strong document with limited ground-level gain.

ABC Live’s final assessment is balanced:

India–Oman CEPA is a strong opportunity. However, its success will depend on execution, enforcement and exporter readiness.

Sources and Methodology

ABC Live reviewed the official material on the India–Oman CEPA, including its data on tariff access, service commitments, sector gains, trade figures and implementation claims.

ABC Live also reviewed public source links for context:

• PIB: India and Oman energise a new Trade Gateway through CEPA
• PIB: Prime Minister shares article on India–Oman CEPA
• Economic Times: India–Oman CEPA kicks in June 1
• ABC Live Internal Link: India–GCC FTA: Why It Matters for India’s Gulf Trade Strategy

This report uses a public-policy method. It separates official claims from risks. It also examines the agreement through trade, law, MSMEs, services, logistics and Gulf strategy.

FAQ

What is the issue?

The issue is the entry into force of the India–Oman CEPA on 1 June 2026. The agreement gives Indian exporters wide duty-free access to Oman. It also covers goods, services, professional movement, investment support and regulatory cooperation.

Why does it matter?

It matters because Oman can help India reach the Gulf and East Africa. Moreover, the agreement may help exporters, MSMEs, farmers, marine exporters, drug makers and engineering firms.

Who is affected?

The agreement affects Indian exporters, MSMEs, farmers, marine exporters, gems and jewellery clusters, drug companies, engineering firms, IT workers, doctors, engineers, teachers, consultants, logistics firms and protected domestic sectors.