The India Oman Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on 1st June 2026. This bilateral trade agreement grants immediate zero-duty access for 99.38% of Indian exports by value to Oman. It creates a secure, tariff-free economic corridor linking South Asia to the wider Gulf Cooperation Council (GCC) and East African markets.
The operationalisation of the landmark India Oman CEPA trade agreement marks a milestone in Middle East supply chains.
The agreement was signed on 18th December 2025 in Muscat by Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik Al Said. Following internal ratification processes, the trade pact became fully operational on 1st June 2026.
Union Minister of Commerce and Industry Shri Piyush Goyal and Omani Ambassador H.E. Issa Saleh Al Shibani marked the launch in New Delhi. The first commercial cargo consignments availing preferential tariff benefits were flagged off from Mumbai, Kolkata, and Chennai. These initial shipments included agriculture, engineering goods, and gems and jewellery products.
For international banks and global trade corporations, this trade treaty restructures the cost metrics of doing business in the Gulf.
Comprehensive Tariff Elimination Analysis
The primary benefit of the India Oman CEPA trade agreement is the immediate reduction in cross-border transaction costs.
Omani Tariff Lines Cleared: Oman has eliminated import duties on 98.08% of its total tariff lines.
Export Value Impact: This coverage accounts for 99.38% of India’s exports to the country by value.
MFN Regime Shift: Under the previous Most Favoured Nation (MFN) regime, only 15.33% of Indian goods entered Omani ports duty-free. The remaining exports faced a standard 5% import tax.
Market Advantage: Indian exporters now secure a distinct price advantage in Oman’s 28 billion dollar import market.
For More Do read it From Our Website - https://www.360tf.trade/india-oman-cepa/
For any trade finance queries, reach out to tia@360tf.trade or our Website-https://www.360tf.trade/
Top comments (0)