India and Oman formally signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025. Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry and Investment Promotion H.E. Qais bin Mohammed Al Yousef signed the agreement in New Delhi. Oman has offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India's exports, benefiting labour-intensive sectors including textiles, gems and jewellery, leather, footwear, engineering goods, pharmaceuticals, and automobiles. India has agreed to liberalise tariffs on approximately 77.79% of its tariff lines, covering close to 94.8–95% of imports from Oman. The agreement's services chapter grants Oman's first-ever mode-4 commitments covering intra-corporate transferees, contractual service suppliers, and independent professionals in accountancy, architecture, and healthcare. The intra-corporate transferee quota has been raised from 20% to 50%. Bilateral trade between India and Oman stood at approximately US$10.6 billion in FY 2024–25. This is Oman's first bilateral free trade agreement since its 2006 deal with the United States, and for India it is the second CEPA with a Gulf Cooperation Council (GCC) country after the UAE CEPA signed in February 2022. The deal is strategically significant given the large Indian diaspora in Oman (about 7.8 lakh), Oman's role as a transit hub, and India's interest in securing Gulf energy and investment ties.
India and Oman Sign Comprehensive Economic Partnership Agreement (CEPA): Zero-Duty Access on 99.38% of India's Exports, Second GCC Trade Deal After UAE
India and Oman formally signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025. Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry and Investment Promotion H.E. Qais bin Mohammed Al Yousef signed the agreement in New Delhi. Oman has offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India's exports, benefiting labour-intensive sectors including textiles, gems and jewellery, leather, footwear, engineering goods, pharmaceuticals, and automobiles. India has agreed to liberalise tariffs on approximately 77.79% of its tariff lines, covering close to 94.8–95% of imports from Oman. The agreement's services chapter grants Oman's first-ever mode-4 commitments covering intra-corporate transferees, contractual service suppliers, and independent professionals in accountancy, architecture, and healthcare. The intra-corporate transferee quota has been raised from 20% to 50%. Bilateral trade between India and Oman stood at approximately US$10.6 billion in FY 2024–25. This is Oman's first bilateral free trade agreement since its 2006 deal with the United States, and for India it is the second CEPA with a Gulf Cooperation Council (GCC) country after the UAE CEPA signed in February 2022. The deal is strategically significant given the large Indian diaspora in Oman (about 7.8 lakh), Oman's role as a transit hub, and India's interest in securing Gulf energy and investment ties.
Key facts
- India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025.
- Oman offers zero-duty access on 98.08% tariff lines covering 99.38% of India's exports.
- Benefited sectors include textiles, gems and jewellery, leather, pharmaceuticals, and automobiles.
- This is India's second CEPA with a GCC country after the UAE CEPA signed in February 2022.
- Bilateral trade between India and Oman stood at approximately US$10.6 billion in FY 2024-25.
- About 7.8 lakh Indians form the diaspora in Oman, making the deal strategically significant.
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What was the primary significance of the India-Oman Comprehensive Economic Partnership Agreement signed in December 2025?
India and Oman signed the CEPA in December 2025. Its exam-relevant importance is that it deepened India's trade access in the Gulf, including zero-duty access for Indian exports on more than 98% of Oman's tariff lines, while also covering services and investment cooperation.
Source: PIB / Ministry of Commerce
Frequently asked questions
When and where was the India-Oman CEPA signed?
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) was formally signed on December 18, 2025 in New Delhi by Commerce and Industry Minister Piyush Goyal and Oman's Minister H.E. Qais bin Mohammed Al Yousef.
What percentage of India's exports will benefit from zero-duty access under the India-Oman CEPA?
Oman has offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India's exports. Labour-intensive sectors such as textiles, gems and jewellery, leather, pharmaceuticals, and automobiles are among the key beneficiaries.
Which GCC country did India sign its first CEPA with, and when?
India signed its first CEPA with the UAE in February 2022. The India-Oman CEPA (December 2025) is India's second such agreement with a Gulf Cooperation Council (GCC) member country.
What is the bilateral trade volume between India and Oman, and how significant is the Indian diaspora in Oman?
Bilateral trade between India and Oman stood at approximately US$10.6 billion in FY 2024-25. About 7.8 lakh Indians reside in Oman, making the agreement strategically important for the diaspora as well.
What is a Comprehensive Economic Partnership Agreement (CEPA)?
A CEPA is a broad trade agreement that covers not only tariff reductions on goods but also trade in services, investments, and intellectual property. It is more comprehensive than a Free Trade Agreement (FTA).
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