Winning Bizness Desk

Mumbai. India has signed a Comprehensive Economic Partnership Agreement with Oman, marking a major step in expanding trade, investment and services ties amid global tariff pressures. The deal comes at a time when India is diversifying its trade partners due to rising US tariffs and the European Union’s carbon tax regime. In FY25, bilateral trade between India and Oman touched 10.613 billion dollars, or nearly Rs 95,700 crore. With this agreement, Indian goods will gain near duty-free access to Oman, while services professionals and investors will see fresh opportunities in the Gulf nation.

Near total duty-free access for Indian exports

Under the CEPA, Oman has granted zero-duty access on 98.08 percent of its tariff lines, covering 99.38 percent of India’s export value. This means that while almost all product categories see tariff elimination, the value coverage ensures that the bulk of Indian exports enter Oman without customs duties. The move is expected to significantly boost India’s competitiveness in the Omani market.

• Key Indian sectors likely to gain include
• Textiles and garments
• Leather and footwear
• Gems and jewellery
• Engineering goods and industrial products
• Plastics and furniture
• Agricultural products and food items
• Pharmaceuticals and medical devices
• Automobiles and auto components

On its part, India has offered tariff concessions on 77.79 percent of tariff lines, which together account for 94.81 percent of imports from Oman. However, New Delhi has carefully excluded sensitive products to protect domestic farmers and small businesses. These include dairy products, chocolates, gold, silver, jewellery and certain footwear categories. The calibrated approach ensures market access without hurting local agriculture and MSMEs.

Services sector commitments open new doors

A major highlight of the agreement lies in services, where Oman has made commitments across 127 sub-sectors for the first time. These include computer and IT services, business and professional services, education, healthcare and research and development. Indian companies will be allowed 100 percent foreign direct investment in several key service sectors. The agreement also promises improved visa norms and longer stay options for Indian professionals, making cross-border movement smoother.

What CEPA offers to businesses and professionals

• Full foreign ownership for Indian firms in select services
• Easier market entry for IT, education and health companies
• Better mobility and residency options for skilled professionals
• Greater scope for joint ventures and partnerships

Minister calls deal a historic turning point

Commerce and Industry Minister Piyush Goyal described the CEPA as a watershed moment in the centuries-old relationship between India and Oman. He said the agreement will unlock large opportunities for Indian exporters and professionals while supporting Oman’s Vision 2040 economic goals. According to him, the pact strengthens trust and long-term economic cooperation between the two countries.