India-Oman trade pact takes effect tomorrow, granting duty-free export access
What's the story
India and Oman are set to implement their Comprehensive Economic Partnership Agreement (CEPA) from June 1. The bilateral trade deal will give Indian exports 100% duty-free access to Oman, with major sectors like textiles and agriculture likely to benefit immediately. The agreement also provides zero-duty access for Indian industrial goods into Oman while protecting sensitive domestic industries in India.
Trade milestones
Fifth FTA under Modi government
The CEPA marks the fifth free trade agreement (FTA) under the Modi government since 2014. It follows pacts with Mauritius (April 2021), UAE (May 2022), Australia (December 2022), and the European Free Trade Association (EFTA) in October 2025. India has also signed deals with the UK (July 2025) and New Zealand (April 2026). The CEPA will be formally announced by both countries on Monday.
Trade benefits
Bilateral trade between India and Oman
Bilateral trade between India and Oman stood at $11.18 billion in 2025-26, up from $10.61 billion in the previous fiscal. Indian exports to Oman were worth $4.02 billion while imports from the country were valued at $7.16 billion during this period. The deal will provide immediate zero-duty access to key Indian industrial sectors such as iron and steel, electrical and industrial machinery, marine products, and copper goods, among others.
Sector protection
India has excluded 2,789 tariff lines
To protect local industries and farmers, India has put 2,789 tariff lines on its exclusion list. The excluded categories include transport equipment, major chemicals, cereals, and fruits and vegetables, among others. High-value manufacturing chains such as rubber, leather, textiles, footwear, petroleum oils, and mineral-based products are also protected under this agreement. Strategic segments like dairy products, meat, oilseeds, vegetable oils, sugar, and food-processing residues are completely kept out of the liberalization purview.
Service sector
CEPA opens up new opportunities for Indian service professionals
The CEPA opens up new opportunities for Indian service professionals. Oman has made strong commitments on the temporary entry and stay of these professionals. The Intra-Corporate Transferees (ICT) cap has been increased from 20% to 50%, allowing more managerial and specialist staff from India to be sent by their companies. For first time in any FTA, Oman has also locked in specific commitments for professional service providers benefiting Indian talent in IT, accounting, engineering, medical education, construction, and consulting fields.
Agricultural benefits
Cheaper imports of Omani dates for Indian consumers
Indian agricultural exports such as natural honey, potatoes, cashews, boneless meat, and bakery items will get immediate duty-free access into Oman. The country has agreed to dismantle tariffs on an array of items including cheese curd milk cream frozen fish butter meat yogurt pastries cakes chocolate sugar confectionery mineral water animal vegetable fats oils. In return, Indian consumers will benefit from cheaper imports of Omani dates, with India granting zero-duty access for up to 2,000 tons annually.