First CEPA Shipments Mark Start of Oman-India Trade Agreement: Key Opportunities for Businesses
MUSCAT, JULY 9 – Indian exporters have begun leveraging the Oman-India Comprehensive Economic Partnership Agreement (CEPA) to initiate seafood and processed food shipments to the Sultanate of Oman. This marks one of the initial practical applications of the trade pact since its implementation on June 1.
The CEPA, signed in Muscat on December 18, 2025, and ratified in Oman by Royal Decree No. 30-2026, aims to strengthen trade and investment ties between the two nations by lowering tariffs and enhancing market access for goods and services.
According to statements from the Indian government, the CEPA grants duty-free access to 99.38% of India’s export value to Oman and 98.08% of Oman’s tariff lines. These figures illustrate the significant market access Indian exporters have achieved, although the actual commercial impact hinges on the speed with which companies from both countries utilize the agreement.
A noteworthy early example comes from India’s seafood industry. On June 1, coinciding with the agreement’s activation, Aqua World Exports Pvt Ltd dispatched a chilled fish consignment to Oman from Chennai Air Cargo Complex.
India’s Press Information Bureau indicated that the CEPA has abolished import duties on key marine products, including shrimp, fish, and cuttlefish, reducing them from 5% to zero. The agreement also incorporates sanitary and phytosanitary provisions designed to facilitate the swift clearance of perishable items.
For exporters, such provisions are crucial, as the seafood trade relies on timely delivery, efficient cold-chain management, food safety approval, and reliable customs processes. For Oman, this development may enhance options for importers, retailers, hotels, and restaurants, although it does not guarantee lower prices for consumers. The overall price impact will depend on factors such as shipping costs, distributor margins, retail pricing, demand, and local market competition.
In a related development, India’s processed-food sector has also made strides. The Agricultural and Processed Food Products Export Development Authority oversaw the export of a 40-tonne biscuit shipment from Varanasi, Uttar Pradesh, to Oman. Organized by Shree Tirupati Balajee Industries Pvt Ltd, this consignment is noted as the first biscuit export from Varanasi to Oman following the CEPA.
This consignment will proceed from Varanasi to the Inland Container Depot in Kanpur for customs clearance before being sent to Jawaharlal Nehru Port for shipment to Oman. This route exemplifies India’s objective to connect its inland food-processing and manufacturing hubs with Gulf markets through preferential trade access.
For Oman, these early shipments present both opportunities and challenges. Reduced tariffs can enhance the competitiveness of imported goods and stimulate activity among Omani importers, logistics firms, and distributors. However, the agreement’s broader economic impact will depend on the ability of Omani companies to swiftly take advantage of preferential access to the Indian market.
Oman has potential opportunities in various sectors, including dates, frankincense, marble, petrochemicals, fertilizers, and specific industrial products. The challenge lies in transforming tariff access into tangible export contracts, effective distribution channels, and sustainable commercial partnerships.
While the initial shipments are modest in scale, their timing is significant. They demonstrate that Indian exporters are proactively utilizing the CEPA. The forthcoming challenge will be to determine if the agreement facilitates balanced trade growth, encourages greater private-sector involvement, and yields tangible benefits for businesses in both countries.
Special Analysis by Omanet | Navigate Oman’s Market
The Oman-India CEPA offers substantial opportunities for Omani businesses as they can leverage reduced tariffs to enhance competitiveness in imports, especially in the seafood and processed food sectors. However, there is a risk that without proactive engagement, Omani exporters may fall behind in utilizing the same preferential access to the Indian market. Smart investors should prioritize establishing robust channels to harness these trade benefits, focusing on sectors where Oman has a competitive advantage, such as dates and petrochemicals.
