India-Oman CEPA Agreement: Under the Comprehensive Economic Partnership Agreement (CEPA) signed between India and Oman, many Indian labour-intensive exports will get entry into Oman without any export duty. This agreement will come into effect from Monday (June 1). The Finance Ministry on Sunday shared information regarding duty concessions on products coming from Oman under this agreement.
India and Oman signed this CEPA agreement in December last year, when Prime Minister Narendra Modi visited Muscat. The Finance Ministry has clarified that importers will have to prove that the goods in question are manufactured in Oman, only then will those goods be exempted from export duty.
Which sector will benefit from the agreement
Oman has offered zero duty access on 98.08 per cent of its tariff lines under this agreement, which will benefit 99.38 per cent of India’s exports. This includes key sectors like gems & jewellery, textiles, leather & footwear, sporting goods, plastics & furniture, agricultural products, engineering products, medicines & medical equipment and automobiles.
Similarly, India has offered duty exemption on 77.79 per cent of its tariff lines, which covers 94.81 per cent of imports from Oman. However, some sensitive products are excluded from the exemption, such as agricultural products (dairy, tea, coffee, rubber, tobacco), bullion and jewellery, footwear and sporting goods and scrap of many base metals.
Service sector will also benefit
India’s service sector will also benefit from this agreement. India’s share in Oman’s service imports is likely to increase. The agreement will open new opportunities in computer services, business, education, health, research and professional services.
In this agreement, emphasis has also been laid on making the travel of Indian professionals easier than before. Oman increased the quota for intra-corporate transferees from 20 to 50 percent. Apart from this, the period for contractual service providers was increased from 90 days to 2 years (and 2 years extension).
India’s trade agreements with other countries
India has also recently signed similar trade agreements with the UK, New Zealand and the EU to diversify global trade and access new markets. The agreement also eases the entry and residency conditions for skilled professionals in specific fields such as accountancy, taxation, architecture, medical and services, making professional engagement even deeper and easier.
India has signed similar deals with Britain in July 2025 and New Zealand in April 2026 and signed a free trade agreement (FTA) with the European Union (a group of 27 countries) on January 27 this year. This is part of efforts to diversify trade amid major changes in the global economic environment due to the turmoil in US tariffs.
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