India-Oman trade deal kicks in today amid Strait of Hormuz crisis: What duty-free access means for Indian exporters

The agreement was signed in Muscat on December 18, 2025, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said of Oman. Following the completion of the required domestic procedures by both sides, the CEPA became operational on June 1, 2026.

The operationalisation of the agreement was marked in the presence of Union Commerce and Industry Minister Piyush Goyal and Oman's Ambassador to India, Issa Saleh Al Shibani.

To commemorate the occasion, the first consignments benefiting from preferential tariff treatment under the agreement—including agricultural products as well as gems and jewellery exports from Mumbai, Kolkata and Chennai—were flagged off.

Oman is India's second-largest trading partner in the Gulf region and serves as a strategic gateway to the wider Gulf Cooperation Council (GCC) market through its advanced port and logistics infrastructure.

Bilateral trade between India and Oman reached USD 11.18 billion in FY 2025-26, up from USD 10.61 billion in FY 2024-25, reflecting sustained growth in economic engagement.

According to an official statement, the agreement was concluded through a structured negotiation process and significantly strengthens India's economic and strategic presence across GCC economies. The CEPA covers trade in goods and services, professional mobility, regulatory cooperation, safeguards against non-tariff barriers, and several cooperation-focused chapters, extending well beyond tariff reduction to establish a long-term framework for economic partnership.

The agreement is expected to enhance market access, boost investment flows, facilitate services trade, and strengthen supply chain integration between the two countries.

Highlighting the significance of the pact, Commerce and Industry Minister Piyush Goyal said, "The India–Oman CEPA marks a defining milestone in India's engagement with Oman and reflects Prime Minister Narendra Modi's vision of forging trade partnerships that create opportunities for farmers, fishermen, youth, women, entrepreneurs and MSMEs."

He noted that the agreement would act as a force multiplier for India's economic engagement in the Gulf region.

"With 99.38 percent of India's exports receiving duty-free access, the agreement unlocks significant opportunities for exporters and professionals. Oman is a trusted partner, a bridge between our peoples, and a gateway to the Gulf and East Africa. The CEPA will strengthen India's integration into regional and global value chains, support job creation, attract investment and enable Indian enterprises to compete on an equal footing with suppliers from countries already enjoying preferential market access," Goyal said.

Commerce Secretary Rajesh Agrawal said the agreement comes at a time when global trade patterns are being reshaped by supply chain diversification, evolving production networks and the emergence of new economic corridors.

"The CEPA positions India and Oman to leverage these structural shifts by fostering deeper integration across trade, services, investment and logistics. It creates a framework for more resilient value chains, enhanced competitiveness and a stronger strategic partnership with regional and global relevance," Agrawal said.

He added that the agreement brings renewed momentum to bilateral economic engagement, anchored in complementary strengths, stronger regulatory cooperation and a shared commitment to growth.

"The India–Oman CEPA is about more than tariff liberalisation. It expands market access, facilitates services trade and provides greater predictability for businesses operating in both countries," he said.

The India-Oman CEPA is widely seen as another major milestone in India's deepening engagement with the Gulf region and aligns with the country's broader strategy of building resilient, diversified and trusted trade partnerships that support manufacturing competitiveness, employment generation, services exports and integration into global value chains.