India-Oman FTA signed: What's in the deal?
What's the story
India has signed a Free Trade Agreement (FTA) with Oman, further strengthening its trade and strategic ties with the Gulf region. The Comprehensive Economic Partnership Agreement (CEPA) was signed during Prime Minister Narendra Modi's two-day visit to Muscat. The deal seeks to reduce tariff and regulatory barriers while bolstering India's long-term economic footprint in West Asia.
Agreement details
CEPA to boost trade in goods, services, and investments
The CEPA covers trade in goods, services, and investment. It was approved by the Indian Union cabinet on December 12 and has also been passed by Oman's lower house of Parliament. Like the India-UAE CEPA signed in February 2022, this agreement is expected to come into effect a few months after signing once procedural formalities are completed. It is the first trade agreement Oman is signing in nearly two decades.
Sectoral opportunities
Oman will eliminate duties on 98% of tariff lines
Oman will eliminate duties on 98% of tariff lines, covering 99% of India's exports, giving India one of its deepest tariff concessions in the Gulf. Labour-intensive sectors such as textiles, gems, engineering goods, pharma and autos will see zero duties, boosting exports and jobs. Oman now allows 100% FDI for Indian service firms and has made a world-first commitment to traditional medicine, boosting India's AYUSH and wellness sectors.
India's offer
India will lower tariffs on 78% of its tariff lines
In exchange, India will lower tariffs on 77.79% of its tariff lines, covering 94.81% of imports from Oman by value. The FTA excludes sensitive sectors such as dairy, tea, coffee, rubber, tobacco, bullion, jewelry, footwear and sports goods. Concessions for select sensitive Omani products will be provided mainly through tariff-rate quotas.
Service sector
India-Oman CEPA is a big win for services, professionals
A key highlight of the India-Oman CEPA is Oman's most ambitious services liberalisation, opening 127 sub-sectors including IT, professional services, education, healthcare, R&D and audio-visuals. With $12.5 billion in services imports, the deal creates major opportunities for Indian firms. It also offers unprecedented mobility gains for Indian professionals, including higher intra-company transfer quotas, up to two-year stays for contractual service suppliers, and easier entry for accountants, architects and medical professionals.
Trade statistics
India's bilateral trade with Oman was about $10.5B in 2024-25
India's bilateral trade with Oman was about $10.5 billion in 2024-25, with exports worth $4 billion and imports worth $6.54 billion. Petroleum products and urea make up over 70% of India's imports from Oman. Other key products include propylene and ethylene polymers, pet coke, gypsum, chemicals, iron, steel, and unwrought aluminium. Talks for the India-Oman CEPA began in 2023, with five rounds of in-person negotiations held during this period. Negotiations concluded around August this year.