India and Oman on Thursday signed a comprehensive free trade agreement that will provide duty-free access for nearly all Indian goods in the West Asian nation, along with wide-ranging benefits for services trade and professional mobility.
The India&ndash;Oman Comprehensive Economic Partnership Agreement (CEPA) was signed in Muscat by Union commerce minister Piyush Goyal and his Omani counterpart Qais bin Mohammed Al Yousef, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik.
Under the agreement, India will receive zero-duty access on 98.08% of Oman&rsquo;s tariff lines, covering 99.38% of Indian exports by value. The pact offers duty-free entry to products across major labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agriculture, engineering goods, pharmaceuticals, medical devices and automobiles. The agreement is expected to come into force in the first quarter of 2026&ndash;27 after the completion of regulatory procedures. Negotiations for the CEPA began in November 2023.
In return, India will liberalise tariffs on 77.79% of its tariff lines, accounting for 94.81% of imports from Oman by value. However, around 2,700 tariff lines have been placed in an exclusion list to protect domestic industries and farmers. These include transport equipment, major chemicals, cereals, dairy products, oilseeds, fruits and vegetables, spices, coffee, tea and animal-origin products. Sensitive sectors such as rubber, leather, textiles, footwear, petroleum oils, mineral-based products, jewellery, precious metals and non-ferrous metals have also been safeguarded. Oman, for its part, has excluded cigarettes, tobacco, alcohol and beverages from the deal.
To regulate imports of sensitive items such as marble, dates, petrochemicals and plastics, India has introduced tariff-rate quotas, allowing only limited quantities at concessional duties. Unlike India&rsquo;s agreement with the UAE, the CEPA with Oman does not provide for liberalised imports of precious metals.
Beyond goods, the agreement includes a comprehensive services package covering 127 sectors and offers liberalised mobility provisions for Indian professionals such as accountants, architects, doctors and practitioners of traditional medicine. Oman has raised the cap under its Omanisation-related intra-corporate transferee framework from 20% to 50%, allowing Indian companies to deploy a higher share of managerial, executive and specialist staff.
The CEPA also permits 100% foreign direct investment by Indian firms in major services sectors in Oman through commercial presence. Both sides have agreed to hold future discussions on social security coordination once Oman&rsquo;s contributory social security system is implemented.
A distinctive feature of the agreement is its focus on traditional medicine. A dedicated annexure recognises trade in health-related and traditional medicine services, opening new opportunities for India&rsquo;s AYUSH and wellness sectors.
India and Oman also finalised several memorandums of understanding covering cooperation in agriculture, higher education, maritime heritage and millet cultivation, along with a joint vision document on maritime cooperation aimed at strengthening regional maritime security and the blue economy.
During bilateral discussions, the two leaders reviewed cooperation in food security, manufacturing, digital technologies, critical minerals, logistics and space. They also explored linking India&rsquo;s Unified Payments Interface with Oman&rsquo;s digital payment system, promoting trade in local currencies, and expanding energy cooperation through long-term arrangements, renewable energy ventures and green hydrogen projects.
The leaders reaffirmed their commitment to enhancing defence and maritime security cooperation, and exchanged views on regional and global issues, including the situation in Gaza. They expressed concern over the humanitarian situation and reiterated support for efforts aimed at peace, while condemning terrorism in all its forms.
Calling the agreement a &ldquo;new and golden chapter&rdquo; in bilateral relations, Prime Minister Modi said the CEPA would energise India&ndash;Oman ties in the 21st century. Oman is seen as a strategic partner and a key gateway for Indian goods and services to West Asia and Africa, with scope for value addition and re-exports from facilities set up in the country.

Prime Minister Narendra Modi being conferred with Oman’s highest honour

Duty-free access for Indian goods, services push and mobility gains under CEPA

India-Oman CEPA signed, duty-free boost

Duty-free access for Indian goods, services push and mobility gains under CEPA

December 19, 2025 | 11:24 IST