India and Oman are set to sign a Comprehensive Economic Partnership Agreement (CEPA) this month, covering goods, services, investments, and labour mobility. The deal will eliminate or reduce customs duties, opening a strategic economic bridge between South Asia and the Gulf.
Indian exports such as iron and steel, electronics, textiles, plastics, automotive parts, and machinery, currently facing a 5% dut,y will gain tariff-free access, boosting competitiveness, scaling production, and creating jobs in line with Make in India goals. SMEs stand to benefit from entry into Gulf markets without pricing disadvantages.
The pact is expected to draw Gulf investment into Indian infrastructure projects like ports, logistics hubs, and industrial corridors, while giving India opportunities in Omani ventures such as Duqm Port.
Labour mobility was a key negotiating point, with India securing carve-outs to protect over 480,000 Indian expatriates from Oman&rsquo;s &ldquo;Omanisation&rdquo; hiring quotas.
The CEPA will also strengthen India&rsquo;s energy security by reducing tariffs on Omani crude oil, LNG, and fertilisers, lowering costs for refineries, power producers, and farmers. Oman's position near the Strait of Hormuz further enhances its strategic value, paving the way for deeper maritime security and defence cooperation.
The agreement positions India as a stronger trade partner in the Gulf, countering China&rsquo;s growing economic influence in the region.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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Trade pact to cut tariffs, enhance investment, and safeguard Indian workforce in Oman

India-Oman CEPA to Boost Gulf Trade Links

Trade pact to cut tariffs, enhance investment, and safeguard Indian workforce in Oman

August 10, 2025 | 19:51 IST