The India-Oman Comprehensive Economic Partnership Agreement (CEPA) comes into force on 1 June 2026, granting zero-duty access to a wide range of Indian labour-intensive exports in one of the Gulf region's most significant bilateral trade milestones. The Finance Ministry issued the formal notification on duty concessions on Sunday, 31 May, clearing the path for immediate implementation.

What the Agreement Covers

Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India's exports to Oman by value. All major labour-intensive sectors — including Gems and Jewellery, Textiles, Leather, Footwear, Sports Goods, Plastics, Furniture, Agricultural Products, Engineering Products, Pharmaceuticals, Medical Devices, and Automobiles — receive full tariff elimination under the pact.

India, in turn, is offering tariff liberalisation on 77.79 per cent of its total tariff lines, covering 94.81 per cent of India's imports from Oman by value. For goods of export interest to Oman that are sensitive for India, the offer is largely structured as a tariff-rate quota (TRQ)-based liberalisation rather than outright elimination.

India's Exclusion List

New Delhi has kept a set of sensitive products in the exclusion category, with no concessions offered. These include agricultural products such as dairy, tea, coffee, rubber, and tobacco; gold and silver bullion and jewellery; labour-intensive goods including footwear and sports goods; and scrap of several base metals. The Finance Ministry's notification specifies that duty exemptions will be available only when importers demonstrate to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs that the goods originate from the Sultanate of Oman.

Services and Professional Mobility

The agreement extends well beyond goods trade. Oman's global services imports stand at $12.52 billion, with India's share currently at 5.31 per cent — a figure that signals considerable untapped potential. Oman has made substantial commitments across Computer Related Services, Business and Professional Services, Audio-Visual Services, Research and Development, and Education and Health Services.

A standout feature is the enhanced professional mobility framework under Mode 4. Oman has, for the first time, increased the quota for Intra-Corporate Transferees from 20 per cent to 50 per cent, and extended the permitted stay for Contractual Service Suppliers from 90 days to two years, with the possibility of a further two-year extension. Skilled professionals in accountancy, taxation, architecture, and medical and allied services will benefit from more liberal entry and stay conditions.

India's Broader Trade Push

The India-Oman CEPA is part of an accelerated bilateral trade agenda. India has already signed a similar agreement with the United Kingdom in July 2025 and with New Zealand in April 2026. Talks with the European Union — a 27-nation bloc — were concluded on 27 January 2026. These deals come amid a dramatic shift in the global economic landscape triggered by US tariff turbulence, prompting New Delhi to diversify its trade partnerships at pace.

The India-Oman CEPA was originally signed in December 2025 during Prime Minister Narendra Modi's visit to Muscat. With its formal entry into force on 1 June 2026, Indian exporters in labour-intensive sectors stand to gain immediate and substantial market access advantages in the Gulf.