Along with Indian investors, American and foreign investors are also waiting for the trade deal. But even before this trade deal, US President Donald Trump indicated to impose new tariffs on Indian rice. Now amidst this American dispute, a big good news has also come. India has signed a big trade agreement with Oman.
Under this free trade deal, India’s strategic and economic relations with the Gulf countries will be further strengthened. The name of this deal is – Comprehensive Economic Partnership Agreement (CEPA). This is India’s second major trade agreement in West Asia, before this India had signed such an agreement with UAE 2 years ago.
India-Oman will get many benefits from CEPA deal
The biggest advantage of the CEPA deal is that now 98% of India’s exported goods can be sold in Oman without any duty (duty free). This means that Indian goods will be available in Oman at cheaper prices than before and their demand will increase. In return, India will also remove import duty on about 77% of the goods coming from Oman. However, India has kept some products out of this decision. These products include important sectors like agricultural goods, dairy products, oil and gas.
There will be zero duty on dates, marble and some petrochemical products coming from Oman, but its quantity will be fixed. That means these goods can be imported duty free only up to a limited quantity. This agreement will be beneficial for both the countries as Oman is an important trading partner of India.
Current data of India-Oman trade
In fiscal year 2025, India had exported $4.1 billion to Oman. At the same time, India imported 6.6 billion dollars from Oman. This figure shows that India is a big exporter to Oman and after this agreement the trade can increase manifold.
Still very high taxes in Oman
Currently, about 85% of the products in Oman attract 5-6% import duty. Duty on some food products is up to 100%. This made it difficult for Indian companies to compete there. But this additional fee will start being removed from the first quarter of 2026.
India also plans to become the largest supplier of electronic products to Oman. Currently UAE is India’s main market in this trade, and now the sales of Indian electronics are expected to increase rapidly in Oman also.
Benefits of services, visa and jobs
This agreement will not only benefit the trade of goods, but will also provide a new path to the services and professional market. With relaxation in visa rules, Indian professionals will be able to easily enter jobs and service sector in Oman.
Apart from this, Oman’s market will open for AYUSH sector i.e. traditional Ayurvedic and naturopathy products of India. This can give a big boost to India’s herbal and Ayurveda industry.
Indian medicines got approval
An important decision has also been taken that Oman will speed up the approval process of Indian medicines. Till now it used to take a lot of time to get approval for Indian medicines in Oman but now this will change. Besides, Oman will also recognize Halal and Organic certificates from India. This will make food export from India easier.
Apart from this, a social security agreement is also likely to be signed between the two countries soon, due to which Indian expatriates working in Oman can get many benefits in the future.
This agreement is economically beneficial for both India and Oman. This will increase India’s exports, increase employment opportunities and Indian companies will be able to make their place in the Gulf countries.
