The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on 1 June 2026, marking a major milestone in India trade diplomacy with the Gulf region. The agreement was signed on 18 December 2025 in Muscat in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said and entered into force after both sides completed internal procedures. The CEPA provides duty-free access for 99.38 per cent of India exports to Oman by value, covering 98.08 per cent of Oman tariff lines, making it one of the most comprehensive market access outcomes secured by India in the Gulf. Under the earlier Most Favoured Nation regime, only 15.33 per cent of Indian exports enjoyed zero-duty access to Oman. Bilateral trade between India and Oman reached USD 11.18 billion in FY 2025-26 from USD 10.61 billion in FY 2024-25, with Oman being India second-largest trading partner in the Gulf after the UAE. The agreement is expected to significantly boost MSMEs, manufacturing and employment by enhancing competitiveness in labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, marine products, engineering goods, processed foods and pharmaceuticals. The deal also offers improved market access for Indian services exports in IT, healthcare, education and professional services, and includes recognition of NPOP certification for India organic products. Oman serves as a strategic gateway to the wider Gulf Cooperation Council market through its advanced port infrastructure including the Duqm Special Economic Zone. The CEPA is India second trade agreement with a GCC member after the UAE CEPA of 2022 and a key building block for the broader India-GCC FTA negotiations.