The landscape of Indian trade just shifted. On December 18, 2025, India and Oman officially signed a Comprehensive Economic Partnership Agreement (CEPA).
For the Indian exporter, this isn't just another trade deal—it’s a high-speed lane into the Gulf, Middle East, and African markets. With implementation targeted for March 2026, here is what you need to know to stay ahead of the curve.
📉 1. Near-Universal Duty-Free Access
Oman has opened its doors wide. Under the CEPA, Oman is providing zero-duty access on 98.08% of its tariff lines. This covers a staggering 99.38% of India’s exports by value.
If you are in these sectors, your "landed cost" in Oman is about to drop significantly (from current duties of 5% to 100%):
• Engineering & Automobiles: Machinery, electrical goods, and vehicle parts.
• Labour-Intensive Sectors: Textiles, apparel, leather, and footwear.
• Gems & Jewelry: Immediate elimination of duties on most categories.
• Consumer Goods: Plastics, furniture, and sports goods.
💊 2. Fast-Track for Pharma & Medical Devices
The "Oman Advantage" is a game-changer for Indian healthcare exporters. Oman has committed to:
• Faster Marketing Authorizations: Simplified approvals for Indian pharma products already approved by global regulators (US FDA, UK MHRA, etc.).
• The AYUSH Breakthrough: For the first time in an FTA, there is a dedicated framework for Traditional Medicine. This creates a massive opening for Ayurveda and wellness brands.
🌍 3. Oman as a Strategic Logistics Hub
Don't just view Oman as a destination; view it as a distribution node.
• Bypass Chokepoints: Oman is the only GCC country with a coastline on the Arabian Sea, allowing ships to bypass the Strait of Hormuz.
• Ports of Duqm & Sohar: These world-class facilities offer special economic zones (SEZs) where Indian firms can set up 100% foreign-owned manufacturing or assembly units to re-export to the MENA region.
💼 4. Professional Mobility & The "India Business Card"
The deal makes doing business on the ground much easier for your team:
• Workforce Flexibility: The quota for Indian professionals (Intra-Corporate Transferees) has been hiked from 20% to 50%.
• Extended Stay: Contractual service suppliers can now stay for two years (extendable to four), up from just 90 days.
• Fast-Track Visas: Executives from firms with investments over $5M can receive 5-year multiple-entry "India Business Cards" within 15 days.
🛡️ What’s Protected?
To balance domestic interests, India has kept sensitive items in the Exclusion List. No duty cuts apply to:
• Dairy, Tea, Coffee, and Tobacco.
• Gold and Silver bullion.
• Base metal scrap.
💡 Pro-Tip for Exporters
As we approach the March 2026 launch, now is the time to:
- Check your HSN Codes: Verify if your specific product falls under the 98% duty-free list.
- Audit Rules of Origin: Ensure your value-addition processes meet the CEPA criteria to claim preferential rates.
- Explore the Duqm SEZ: If you’re looking to scale globally, Oman’s logistics hubs offer a tax-efficient base for your regional operations.
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