Published: 12 January 2026PIBEconomy
India-Oman CEPA Enters Force: 98% Duty-Free Access; Bilateral Trade at $10.61 Billion
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed on December 18, 2025, came into operational focus with discussions on implementation. Oman offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India's exports to Oman. India will reduce tariffs on approximately 78% of tariff lines covering 95% of imports from Oman.
Oman offered commitments in 127 service sub-sectors — unprecedented in its trade agreements. Intra-Corporate Transferee quotas rose from 20% to 50%, and Contractual Service Supplier stay was extended from 90 days to two years. Bilateral trade reached $10.61 billion in FY 2024-25, up from $8.94 billion in FY 2023-24. Sectors benefiting include gems, textiles, leather, pharmaceuticals, and agricultural products.
0Mains angle
Q: Evaluate the key features and trade impact of the India-Oman Comprehensive Economic Partnership Agreement signed in December 2025.
Answer (50 words):
The India-Oman CEPA, signed on December 18, 2025, grants zero-duty access on 98.08% of Oman's tariff lines covering 99.38% of India's exports. Oman opened 127 service sub-sectors. Intra-Corporate Transferee quotas rose from 20% to 50%, and Contractual Service Supplier stay extended to two years. Bilateral trade reached $10.61 billion in FY 2024-25.
6-axis classification
CoverageInternationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
India's annual pharma exports contribute approximately how much to the economy?
Explanation · Correct answer CAs per the official PIB release citing the Economic Survey 2025-26, India's pharmaceutical exports stood at USD 30.5 billion in 2024-25 — a nearly 16-fold increase from USD 1.9 billion in 2000-01. The earlier figure of about USD 25 billion is stale; the closest correct value is approximately USD 30.5 billion annually.
Frequently asked questions
What duty-free access did Oman offer India under the India-Oman CEPA signed in December 2025?
Oman offered **zero-duty access on 98.08% of its tariff lines**, covering **99.38% of India's exports** to Oman. In return, India will reduce tariffs on approximately **78% of tariff lines** covering **95% of imports from Oman**. The India-Oman CEPA was signed on **December 18, 2025**.
What is the bilateral trade value between India and Oman under the CEPA and which sectors benefit most?
**Bilateral trade reached $10.61 billion** in FY 2024-25, up from **$8.94 billion** in FY 2023-24. Key benefiting sectors include **gems, textiles, leather, pharmaceuticals, and agricultural products**. Oman committed to **127 service sub-sectors** — unprecedented in its trade agreements.
How did the India-Oman CEPA change rules for Intra-Corporate Transferees and Contractual Service Suppliers?
Under the India-Oman CEPA: **Intra-Corporate Transferee quotas rose from 20% to 50%**, and **Contractual Service Supplier stay was extended from 90 days to two years**. These changes facilitate greater mobility for Indian professionals working in Oman across corporate and contractual roles.
Why is Oman's service sector commitment of 127 sub-sectors significant in the India-Oman CEPA?
Oman's commitment of **127 service sub-sectors** is described as **unprecedented in its trade agreements**, making it the most comprehensive service liberalisation Oman has offered any trading partner. This opens significant opportunities for Indian IT, financial, healthcare, and professional services firms in Oman.
What percentage of India's exports to Oman are covered by the zero-duty access offered under the India-Oman CEPA?
**99.38% of India's exports to Oman** are covered by Oman's zero-duty access offer, applying to **98.08% of Oman's tariff lines**. Sectors benefiting include **gems, textiles, leather, pharmaceuticals, and agricultural products**. Bilateral trade stood at **$10.61 billion** in FY 2024-25.
