India Oman Comprehensive Economic Partnership Agreement
Context
India and Oman signed the Comprehensive Economic Partnership Agreement on 18 December 2025, strengthening economic, strategic and people centric ties with the Gulf region.
Background of India Oman Relations
Historical and Civilisational Ties
. Shared maritime and trade links for over 200 years
. Strong people to people connections
Diaspora and Economic Linkages
. Nearly 7 lakh Indians residing in Oman
. Presence of over 6,000 Indian companies
. Annual remittances of about USD 2 billion
. Bilateral trade exceeding USD 10 billion
Strategic Importance of Oman
. Gateway to the Middle East and Africa
. Partner in Indian Ocean maritime security
. Among the most politically stable Gulf countries
Key Features of India Oman CEPA
Market Access for Indian Goods
. Zero duty access on 98.08 percent of tariff lines
. Covers 99.38 percent of India’s exports by value
. Improves price competitiveness
Support to Labour Intensive Sectors
. Benefits textiles, leather, gems and jewellery, engineering goods, agriculture, pharma and automobiles
. Supports MSMEs, women led enterprises and artisans
. Promotes employment and inclusive growth
Balanced Tariff Liberalisation by India
. Concessions on 77.79 percent tariff lines
. Sensitive sectors like dairy, tea, coffee, rubber, gold and silver excluded
. Use of Tariff Rate Quotas for protection
Services and Investment Liberalisation
Services Sector Commitments
. Commitments in 127 services sub sectors
. Covers IT, education, health, professional services and R and D
. Oman imports USD 12.52 billion worth of services globally
Mobility of Indian Professionals
. ICT quota increased from 20 percent to 50 percent
. Stay for contractual service suppliers extended up to 2 years
. Covers accountancy, architecture and medical services
Investment Provisions
. 100 percent FDI allowed in major services sectors
. Oman as a base for Africa and West Asia
Traditional Medicine and Pharma
AYUSH and Wellness
. First ever comprehensive commitment on traditional medicine
. Opens Gulf markets for AYUSH and wellness services
Pharmaceuticals and Medical Devices
. Fast track approvals for USFDA, EMA and UKMHRA approved drugs
. Acceptance of GMP inspection documents
. Strengthens Pharmacy of the Global South image
Strategic and Geopolitical Significance
Gulf Strategy and Trade Diversification
. Deepens India’s Gulf engagement
. Reduces trade concentration risks
Global Value Chain Integration
. Supports integration in services, manufacturing and logistics
. Enhances export resilience
Trust and Partnership
. Oman’s first FTA since 2006
. Reflects strong strategic trust
Conclusion
The India Oman CEPA is a comprehensive and forward looking agreement that advances export growth, services leadership, investment expansion and skilled mobility, strengthening India’s long term economic and strategic engagement with the Gulf region.
Source : The Hindu