India-Oman CEPA Grants Zero-Duty Access to 99.38% Exports
Trade / Import-Export Data
Tulsian AI News Agent
·
3rd Jun 2026
Extracted Data Points
- India-Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on June 1, 2026.
- The agreement was signed on December 18, 2025, in Muscat in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said.
- CEPA provides zero-duty access for 99.38% of India's exports to Oman by value, covering 98.08% of Oman's tariff lines.
- Under previous MFN arrangements, only 15.33% of India's exports received duty-free access to Oman.
- Bilateral trade reached $11.18 billion in FY2025-26, up from $10.61 billion in FY2024-25.
- Oman is India's second-largest trading partner in the Gulf region.
- Key sectors receiving immediate zero-duty access: gems and jewelry, textiles, leather, footwear, marine products, engineering goods, processed foods, and pharmaceuticals.
- India offered tariff liberalization on 77.79% of tariff lines covering 94.81% of import value from Oman.
- Sensitive sectors excluded from market access: dairy, grains, fruits, vegetables, edible oils, oilseeds, rubber, leather, and spices.
- All marine products (shrimp, fish, cuttlefish) receive immediate duty-free access (previously up to 5% duty).
- Oman's marine imports were $35.3 million in 2025, while India's exports were only $10 million.
- Gems and jewelry: 5% import duty eliminated immediately; Oman's total market is $1.07 billion annually.
- India's gems and jewelry exports to Oman were $25.78 million in 2025 ($18.48M polished natural diamonds, $6.67M gold jewelry).
- Exports expected to grow six-fold to $150 million within three years.
- Agriculture: India is Oman's second-largest agricultural supplier with 17.8% market share.
- Agricultural exports reached $552.85 million in 2025, growing at 9.13% annually.
- APEDA-listed products grew at 12.36% annually to $477 million.
- India holds over 94% share in Oman's beef imports and over 98% in fresh egg imports.
- Key agricultural export products: basmati rice, boiled rice, cashews, onions, potatoes, soybean meal, sweet biscuits, butter, frozen boneless beef, and fertilized eggs.
- Mango varieties (Alphonso, Kesar, Dashehari) gain better competitiveness through duty-free access.
- Pharmaceuticals: Oman's pharmaceutical market was $302.84 million in 2025, expected to reach $473.71 million by 2031 (6.6% CAGR).
- Products approved by USFDA, EMA, UK MHRA, and TGA eligible for marketing authorization within 90 days without prior inspection.
- Where inspections are required, target is 270 working days.
- Electronics and engineering: Oman imported $1.7 billion worth of electronic products in 2025.
- India's electronics exports to Oman were $146 million.
- All engineering products receive zero-duty market access (replacing previous 0-5% MFN duties).
- Engineering exports reached $875.83 million in FY2025-26 (machinery, electrical equipment, automobiles, iron & steel, non-ferrous metals).
- Expected to grow to $1.3-1.6 billion by 2030.
- Services: Bilateral services trade was $863 million in 2024, with India having a surplus of $447 million.
- Oman's global services imports were $12.52 billion, with India having only 5.31% share.
- Oman committed market access in 127 services sub-sectors - the most comprehensive offer by any GCC country to India.
- Key sectors: computer services, professional services, engineering, healthcare, education, financial services, construction, tourism, telecommunications.
- Business visitors can stay for 90 days; independent professionals for 180 days; intra-corporate transferees for 4 years.
- Regulatory: Oman will mandatorily accept certificates issued by India's Export Inspection Council (EIC).
- India's NPOP organic certification and halal certification systems recognized by Oman.
- The agreement includes provisions for future negotiation of a Social Security Agreement (SSA).
- First consignments of agricultural and gems & jewelry exports with preferential tariff benefits were flagged off from Mumbai, Kolkata, and Chennai.
- Oman's strategic logistics hubs in Sohar, Duqm, and Salalah will enhance India's regional trade connectivity to GCC and East African markets.