Union Coal and Mines Minister and BJP Telangana president G. Kishan Reddy on Monday, 1 June 2026 welcomed the entry into force of the India-Oman Comprehensive Economic Partnership Agreement (CEPA), calling it a significant step in India's growing economic partnership with Oman under Prime Minister Narendra Modi.

Context

The CEPA grants Indian goods zero-duty access on 98.08% of Oman's tariff lines, covering 99.38% of trade value between the two countries. Kishan Reddy described the agreement as one that 'creates new opportunities for Indian exporters, MSMEs and labour-intensive sectors.'

Beyond goods trade, the agreement opens new professional avenues for IT professionals, engineers, healthcare workers, educators and AYUSH practitioners, while ring-fencing sensitive domestic sectors such as dairy and agriculture from full liberalisation.

Policy Backdrop

The India-Oman CEPA follows the template established by the India-UAE CEPA, which was signed in February 2022 and entered into force in May 2022. That agreement recorded a sharp uptick in India's non-oil exports to the UAE and became the reference model for subsequent Gulf deals.

Since 2022, India has accelerated bilateral trade agreements with Gulf Cooperation Council (GCC) economies to diversify export destinations and attract investment flows. Each agreement has combined wide tariff liberalisation with carve-outs for politically sensitive agricultural products — a pattern the Oman deal continues.

Oman, a GCC member state, has maintained long-standing energy, defence and labour ties with India and hosts a sizeable Indian expatriate community. The CEPA is expected to formalise and deepen those economic links.

Stakeholders and Impact

Indian MSMEs and exporters in labour-intensive manufacturing — including textiles, gems and jewellery, pharmaceuticals and engineering goods — stand to gain the most from near-total tariff elimination on the Omani side. Rules-of-origin compliance will be a key operational requirement for smaller exporters seeking to utilise the preferential rates.

For Indian professionals, the services chapter creates structured pathways into Oman's healthcare, education and technology sectors. AYUSH practitioners — a category covering Ayurveda, Yoga, Unani, Siddha and Homeopathy — feature explicitly in the agreement, reflecting India's push to internationalise its traditional medicine sector.

Domestic dairy and agriculture producers, who have historically resisted broad liberalisation in trade negotiations, retain protection under sector-specific carve-outs, limiting competitive pressure from Omani imports in those categories.

What's Next

Trade data from the Ministry of Commerce and Industry over the next two quarters will be the first measurable indicator of whether the CEPA translates into export growth, as it did after the UAE agreement. Analysts will watch for notifications on rules-of-origin norms and any bilateral joint committee meetings to operationalise the pact.

With the Oman CEPA now live, India's broader Gulf trade architecture is taking shape. Further agreements with other GCC members could follow, reinforcing India's strategy of using bilateral economic pacts to anchor its position as a preferred trade and talent partner across the region.