Oman-India CEPA: How the Special Implementation Team Will Boost Bilateral Business Opportunities
The Ministry of Commerce, Industry, and Investment Promotion has highlighted the Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Republic of India as a testament to the strong trade relations between the two nations.
This agreement marks a significant milestone in enhancing trade exchanges, facilitating access to goods and services, attracting quality investments, and broadening cooperation across priority sectors for both countries.
The ministry emphasized that the negotiations were informed by specialized studies, notably an economic study conducted by Deloitte & Touche. This study addressed anticipated impacts on customs duty liberalization, export growth, and investment expansion, confirming the agreement’s feasibility and its potential to add value to the national economy while boosting the competitiveness of Omani exports internationally.
One key feature is the reduction of customs duties on raw materials imported from India. This will lower production costs within Oman, support manufacturing supply chains, and strengthen Oman’s role as a strategic trade and logistics hub connecting the Gulf, the Middle East, and the Far East.
To ensure smooth implementation, the ministry will establish a national rapid intervention team to monitor the agreement’s rollout and resolve any sectoral or company-level challenges. Legislative and legal steps to ratify the agreement are underway, aiming to enable its entry into force. This will elevate Oman’s position in global trade systems and reinforce its vision for a diversified, value-driven economy characterized by competitiveness and sustainable investment.
The negotiation phase spanned five main rounds between 2023 and 2025, covering a broad scope including legal frameworks, rules of origin, health and technical standards, trade facilitation, goods and services trade, intellectual property, and dispute resolution. The resulting balanced agreement protects both parties’ interests while respecting Oman’s Gulf and international commitments.
Trade volume between Oman and India reached approximately $7 billion in 2024, making India one of Oman’s top trading partners, particularly in non-oil exports like polyethylene, urea, gypsum, ethylene, and petrochemical and metal products. The agreement’s preferential market access is expected to further boost trade expansion.
Oman secured a high degree of trade liberalization, with 97.4% of Omani goods based on current export volumes benefiting from tariff reductions, while India’s market access reached about 77.8%, with special provisions for strategic national industries. Oman granted India gradual tariff liberalization, reaching 99.22%, aligned with national economic policies that protect local industries.
The CEPA comprises 16 main chapters with technical annexes addressing trade in goods, customs duties, import-export procedures, rules of origin, sanitary measures, intellectual property, the movement of natural persons, SMEs, economic cooperation, and trade in services with provisions for market access and transparency.
The agreement also prioritizes protecting national industries through anti-dumping, countervailing, and safeguard measures alongside balance of payments protections. It sustains Oman’s national policies on Omanization, including restrictions on certain professions.
India ranks among Oman’s top ten sources of foreign direct investment, with investments totaling roughly RO 286 million in Q1 2025. Key sectors include iron and steel, fertilizers, clean energy, healthcare, and petrochemicals, which help bolster industrial value chains, production capacity, and job creation.
The agreement is also expected to enhance food and drug security and foster cooperation in agriculture, health, biotechnology, digital trade, logistics, mining, innovation, space, and tourism, aligning closely with Oman Vision 2040 goals.
Active participation of Omani private sector stakeholders during negotiations ensured the agreement reflects market realities and opportunities. The ministry confirmed that the CEPA complies fully with GCC obligations and does not impede trade flow within the Gulf Cooperation Council. Government procurement was excluded to preserve legislative sovereignty, and legal reviews affirm the agreement’s consistency with Oman’s constitution and international law.
Economic projections suggest that liberalizing customs duties between Oman and India will boost the competitiveness of Omani products, which previously faced an average 17% tariff barrier in the Indian market. With CEPA, Omani businesses will access a vast market exceeding $17 trillion in GDP and over 400 million consumers, fostering industrial growth and production scale-up.
Special Analysis by Omanet | Navigate Oman’s Market
The Oman-India Comprehensive Economic Partnership Agreement (CEPA) marks a significant strategic milestone by substantially liberalizing trade and investment flows between the two nations, positioning Oman as a competitive trade and logistics hub in the region. For businesses, this creates opportunities to reduce production costs through lowered customs duties on key raw materials and expand into India’s vast $17 trillion market of over 400 million consumers. Smart investors should leverage this enhanced market access, particularly in priority sectors such as petrochemicals, manufacturing, clean energy, and digital trade, while remaining vigilant about navigating protective measures for local industries embedded in the agreement.
