The India-Oman Comprehensive Economic Partnership Agreement (CEPA) will formally come into force on Monday, providing immediate zero-duty market access to Indian exports across 98 per cent tariff lines.

Strengthening economic and trade ties with Oman also holds great strategic importance for India as the country provides access to the Gulf countries bypassing the strife-stricken Strait of Hormuz.

Indian exporters across sectors such as textiles, automobiles and components, many agricultural items, marine products, engineering goods, gems and jewellery and machinery, facing about 5 per cent tariffs, are expected to benefit significantly following duty elimination, per government estimates.

“Commerce Minister Piyush Goyal will preside over the India-Oman CEPA entry into force ceremony,” according to the Commerce Department. Omani officials and top representatives are likely to join the ceremony virtually, an official said.

In FY26, India’s exports to Oman were at $4.02 billion while it imported goods valued at $7.16 billion from the country. An estimated $3.6 billion of India’s exports, that face an average of 5 per cent tariffs, are likely to gain immediate benefits, the government noted.

“Currently, over 80 per cent of Indian goods enter Oman at an average tariff of around 5 per cent, but duties range widely from zero to as high as 100 per cent on select products such as certain meats, alcohol and tobacco. Tariff elimination under the CEPA is expected to improve competitiveness for Indian industrial exports, though sustained growth will depend on quality upgrades and product differentiation in Oman’s relatively small market,” per an analysis done by research body GTRI earlier.

India has offered tariff liberalisation on 77.79 per cent of its total tariff lines to Oman and the country stands to gain larger market access in energy and industrial inputs.

“At a broader level, Oman offers Indian engineering exporters a stable alternative market and strategic diversification amid rising global protectionism in markets such as the US, EU and Mexico, while supporting wider access to the GCC and the Middle East,” the government noted.

The India-Oman CEPA marks the fifth major free trade agreement to be fully implemented by New Delhi since the BJP government took charge in 2014. It follows the successful rollouts of trade pacts with Mauritius (April 2021), the UAE (May 2022), Australia (December 2022), and the European Free Trade Association (EFTA) in October 2025.

Published on May 31, 2026