Union Culture and Tourism Minister Gajendra Singh Shekhawat on Monday, 1 June 2026 voiced strong support for the India-Oman Comprehensive Economic Partnership Agreement (CEPA), saying the pact is designed to make trade between the two nations easier and more durable, with Indian products set to attract zero customs duty in Oman.

Context

Posting in Hindi on X, Shekhawat wrote: 'India-Oman CEPA समझौते का उद्देश्य दोनों देशों के बीच व्यापार को आसान और स्थायी बनाना है' — 'The aim of the India-Oman CEPA agreement is to make trade between the two countries easy and lasting.' He added that the pact would bring zero duty on Indian products in Oman and unlock 'numerous possibilities' in the coordination of exports and employment, ensuring 'definite benefits for every section of the country.'

The minister's remarks come as India has accelerated its push to formalise preferential trade arrangements with Gulf Cooperation Council (GCC) member states, seeking to diversify export destinations and generate jobs in labour-intensive industries.

Policy Backdrop

The India-Oman CEPA follows the template set by the landmark India-UAE CEPA, signed in February 2022, which eliminated duties on more than 80 per cent of tariff lines and became the first such agreement India concluded with a Gulf nation. A similar framework was extended to Australia through the India-Australia Economic Cooperation and Trade Agreement (ECTA) in 2022.

The Ministry of Commerce and Industry is the lead negotiating body for India's CEPA and Free Trade Agreement portfolio. These deals typically feature phased duty elimination schedules and targeted provisions to expand market access in goods and services sectors where India holds a competitive edge, including textiles, engineering goods, pharmaceuticals, and gems and jewellery.

Stakeholders and Impact

Oman is a long-standing partner of India, with deep ties spanning defence cooperation, energy trade, and one of the largest Indian diaspora communities in the Gulf. A zero-duty regime for Indian merchandise in Oman would directly benefit MSMEs and mid-sized exporters who currently face tariff barriers that erode price competitiveness.

Employment in export-linked sectors — particularly in states with high concentrations of labour-intensive manufacturing — is expected to see a positive ripple effect as order volumes from Oman potentially rise under the new tariff structure. Shekhawat, representing Jodhpur in Rajasthan, a state with significant textile and handicraft export activity, has a direct constituency interest in such outcomes.

What's Next

Analysts and exporters will watch closely for the official gazette notification of the agreement's tariff schedules by the Ministry of Commerce and Industry, which will detail the specific product lines eligible for zero or reduced duty. The first post-agreement bilateral trade data released by the commerce ministry will serve as the earliest empirical test of whether the pact delivers the export and employment gains its proponents project.

If the India-Oman CEPA performs in line with the India-UAE CEPA precedent, it could accelerate India's broader strategy of locking in preferential access across the entire GCC bloc — a market of significant strategic and economic importance for New Delhi.