India and Oman have taken a significant step in economic cooperation by signing a Comprehensive Economic Partnership Agreement (CEPA). The pact aims to expand trade, investment, and services cooperation while reinforcing long-standing strategic ties between the two nations. It reflects India’s broader efforts to strengthen trade relations with key partners in the Gulf region.
Historic Milestone
Prime Minister Narendra Modi called the CEPA a “historic step forward” that will energize India–Oman relations in the 21st century. He highlighted that the agreement will create new opportunities for businesses and youth in both countries and boost long-term trade and investment flows.
Key Features of the CEPA
Oman has offered zero-duty market access on over 98% of its tariff lines, covering more than 99% of India’s exports by value. Immediate tariff elimination will benefit sectors including textiles, gems and jewellery, leather, engineering goods, pharmaceuticals, medical devices, and automobiles. India will liberalize tariffs on nearly 78% of its tariff lines for imports from Oman, while protecting sensitive domestic sectors.
Services, Mobility, and Investment
The CEPA emphasizes services and professional mobility. Oman has made commitments in IT, education, health, research, professional services, and audio-visual sectors. Mobility provisions allow higher quotas and longer stays for Indian professionals. The agreement also permits 100% foreign direct investment by Indian companies in several Omani services sectors and opens new opportunities for India’s AYUSH and wellness industries.
Strategic and Economic Significance
Signed by India’s Commerce and Industry Minister and Oman’s Minister of Commerce, Industry and Investment Promotion, the agreement strengthens bilateral trade, which already exceeds USD 10 billion. With a large Indian diaspora and strong business presence in Oman, the CEPA is expected to boost exports, reinforce supply chains, create jobs, and position Oman as India’s gateway to the Middle East and Africa.
