Understanding CEPA Between Oman and India: Key Business Opportunities for Investors and Entrepreneurs
The Majlis A’ Shura has approved the draft Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Government of the Republic of India, following its referral by the Cabinet.
The Indian Cabinet gave its approval for the CEPA on Friday. The agreement is expected to be signed during Prime Minister Narendra Modi’s upcoming visit to Muscat on December 17–18, according to informed sources.
Objectives of CEPA
The CEPA aims to boost trade between Oman and India by increasing bilateral trade flows through the elimination or reduction of trade barriers, including customs duties and para-tariffs on goods originating from both countries.
Market Access Enhancements
This agreement facilitates improved market access to create a favorable trade and investment environment that promotes economic growth, investment, and shared prosperity. It guarantees fair competition and preferential treatment for goods originating in Oman and India, ensuring parity with domestic products and protecting the interests of traders and producers on both sides.
Article 54 of the Council of Oman Law requires that draft economic and social agreements intended by the Government to be concluded or acceded to must be submitted by the Cabinet to Majlis A’ Shura. This allows the council to review the agreements and provide its feedback and recommendations to the Cabinet for appropriate action.
Ahmed Al Sharqi, Chairman of the Economic and Financial Committee and Rapporteur for the current Majlis A’ Shura session, presented the Committee’s report on the draft agreement. He highlighted that the Committee carefully examined critical economic factors, including the agreement’s impact on the local market, the opportunities and incentives it may provide for the national economy, and the challenges requiring proactive preparedness.
The session featured in-depth discussions, focusing on the anticipated economic effects of the agreement and its implications for Oman’s economic performance. Members also evaluated the impact on the small and medium enterprise sector.
Members stressed the importance of assessing domestic economic sectors potentially affected by the agreement and developing mechanisms to mitigate any negative impacts. They highlighted the need to align the agreement with Oman’s development priorities, support the competitiveness of national products in both local and international markets, and enhance access to global markets.
According to the National Centre for Statistics and Information (NCSI), Oman’s non-oil exports to India were valued at RO 529 million in the first nine months of 2025, marking an 18.6% increase compared to RO 446 million in the same period in 2024. Imports from India during this period reached RO 1,077 million.
There are over 6,000 India-Oman joint ventures in Oman, with estimated investments exceeding US$776 million. From April 2000 to March 2025, Oman’s cumulative foreign direct investment equity inflow to India totaled US$605.57 million, according to data from the Indian Embassy.
Oman ranks as India’s 28th largest trading partner in the fiscal year 2024-2025, with total trade amounting to US$10.61 billion, the embassy noted.
As reported by India’s PTI news agency, bilateral trade totaled approximately US$10.5 billion in 2024-25, including exports of US$4 billion and imports of US$6.54 billion. India’s key imports from Oman include petroleum products and urea, which constitute over 70% of total imports. Other significant imports include propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.
Special Analysis by Omanet | Navigate Oman’s Market
The approval of the Comprehensive Economic Partnership Agreement (CEPA) between Oman and India signals a strategic boost to bilateral trade, promising enhanced market access and lowered trade barriers. For businesses, this translates into expanded export opportunities and competitive advantages in both markets, while small and medium enterprises should prepare for increased competition and leverage incentives to innovate. Smart investors and entrepreneurs must now focus on sectors aligned with the agreement, such as petroleum, chemicals, and manufacturing, and proactively mitigate risks to domestic markets to capitalize on the growing India-Oman economic corridor.
