India-Oman Trade Deal Takes Effect: What Gets Cheaper, What India Can Sell More, And What Oman Gains
India-Oman Trade Deal Takes Effect: What Gets Cheaper, What India Can Sell More, And What Oman Gains Published By, Last Updated: June 01, 2026, 19:53
India-Oman Trade Deal Takes Effect: What Gets Cheaper, What India Can Sell More, And What Oman Gains Published By, Last Updated: June 01, 2026, 19:53 IST India Oman CEPA takes effect, giving duty free access to 99.38 percent of Indian exports, easing pharma and electronics trade, and expanding visas for Indian professionals India's Prime Minister Narendra Modi (C-L) walks alongside Oman's Deputy Prime Minister for Defence Affairs Sayyid Shihab bin Tariq al-Said. (Image: AFP) The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on Monday, opening the door to duty-free trade on thousands of products and giving Indian exporters unprecedented access to the Gulf nation’s market. The agreement is being seen as a major boost for trade between the two countries, with India gaining duty-free access for nearly all its exports to Oman while Indian consumers are expected to benefit from cheaper imports of select Omani products. What Gets Cheaper In India? The most immediate benefit for Indian consumers is likely to come from Omani dates, which will now enter India under quota-based duty concessions. India has also granted tariff concessions on several products imported from Oman, including Dates Certain marble products Petrochemical products However, New Delhi has protected several sensitive sectors and has not offered duty concessions on products such as Gold and silver bullion Jewellery Dairy products Cereals Fruits and vegetables Edible oils Spices Footwear Sports goods Rubber and leather products What Indian Products Will Get Easier Access To Oman?
The biggest gains are expected for Indian exporters. Under the agreement, 99.38% of India’s exports by value will now enjoy duty-free access to Oman, compared to just 15.33% earlier under the Most Favoured Nation (MFN) regime. Key Indian products expected to benefit include Textiles and garments Gems and jewellery Engineering goods Leather products Footwear Pharmaceuticals Processed foods Marine products Electronics Agricultural products Many of these products previously faced import duties of around 5% in Oman, reducing their competitiveness against suppliers from countries that already had preferential trade access. Big Opportunity For India’s Pharma Sector One of the largest beneficiaries could be India’s pharmaceutical industry. The agreement guarantees zero-duty access for Medicines Vaccines Pharmaceutical ingredients Antibiotics including penicillin, streptomycin and tetracycline The deal also streamlines approvals for medicines already cleared by major regulators such as the US FDA and European Medicines Agency, significantly reducing the time needed to enter the Omani market. Electronics Exports Could Rise Oman imported around USD 1.7 billion worth of electronics in 2025. India currently exports only about USD 146 million worth of electronics to Oman, leaving significant room for growth. Products expected to gain from the pact include Electrical boards and cabinets Static converters Television reception equipment Consumer electronics Services And Professional Mobility Get A Major Boost Beyond goods, the agreement also opens opportunities for Indian professionals.
For the first time, Oman has significantly expanded access for skilled Indian workers and professionals. The new provisions allow Business visitors to stay up to 90 days Independent professionals to stay up to 180 days Intra-corporate transferees to stay up to four years The quota for intra-corporate transferees has also been increased from 20% to 50%. The changes are expected to benefit more than 6,000 India-Oman joint ventures operating in the Gulf nation. Why The Deal Matters The agreement comes at a time when Indian exporters have faced logistical challenges due to tensions in West Asia and disruptions linked to the US-Iran conflict. Commerce Minister Piyush Goyal said the pact would create jobs, strengthen manufacturing and improve the competitiveness of Indian businesses in sectors such as textiles, gems and jewellery, engineering goods and pharmaceuticals. India-Oman trade stood at USD 11.18 billion in FY 2025-26, and officials expect the agreement to add around USD 2 billion in bilateral trade over the next two to three years. For Oman, the deal provides access to one of the world’s fastest-growing large markets. For India, it opens the door to Oman’s nearly USD 28 billion import market while also providing a strategic gateway to the wider Gulf Cooperation Council region and East Africa.
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