New Delhi, June 1 (APAC Media): The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is set to come into force on Monday, opening up duty-free access for a wide range of Indian exports, particularly for labour-intensive sectors.
The Ministry of Finance on Sunday issued a notification detailing customs duty concessions on goods imported from Oman under the trade agreement.
India and Oman signed the CEPA in December 2025 during Prime Minister Narendra Modi’s visit to Muscat, marking a significant step towards strengthening bilateral trade and economic ties.
According to the Finance Ministry, importers seeking duty benefits under the agreement must provide proof to customs authorities that the imported goods originate from the Sultanate of Oman.
Under the agreement, Oman has granted zero-duty market access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to the Gulf nation. The move is expected to benefit several labour-intensive sectors, including gems and jewellery, textiles, leather goods, footwear, sports equipment, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles.
India, on its part, has agreed to reduce tariffs on 77.79 per cent of its tariff lines, accounting for 94.81 per cent of imports from Oman by value. For products considered commercially important to Oman but sensitive to India, tariff concessions have largely been offered through tariff-rate quotas (TRQs).
To safeguard domestic interests, India has excluded several sensitive categories from tariff concessions. These include agricultural commodities such as dairy products, tea, coffee, rubber and tobacco, along with gold and silver bullion, jewellery, footwear, sports goods and scrap from various base metals.
The agreement is also expected to create new opportunities in the services sector, Oman’s global services imports are valued at approximately $12.52 billion, while India currently accounts for only a small share of that market.
The services chapter of the CEPA includes commitments from Oman across a wide range of sectors, including computer-related services, business and professional services, audio-visual services, research and development, education and healthcare.
One of the major features of the agreement is an enhanced mobility framework for Indian professionals. For the first time, Oman has made extensive commitments under Mode 4, including raising the quota for intra-corporate transferees from 20 per cent to 50 per cent.
The agreement also extends the permitted stay for contractual service suppliers from the current 90 days to two years, with an option for a further two-year extension.
In addition, more liberal entry and residency provisions have been introduced for skilled professionals working in fields such as accountancy, taxation, architecture, medical services and allied sectors, facilitating greater professional mobility between the two countries.
In recent years, India has also concluded such trade agreements with the United Kingdom and New Zealand, while completing negotiations for a free trade agreement with the European Union with the aim to boost international economic ties.
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