India and Oman Sign the Comprehensive Economic Partnership Agreement (CEPA)

India and Oman have entered into an agreement of Comprehensive Economic Partnership (CEPA) in order to considerably enrich the economic and trading ties between the two nations. The agreement was finally signed in Muscat on 18 December 2025, when the Commerce and Industry Minister of India and the Minister of Commerce of Oman signed the agreement in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik. The CEPA is designed to strengthen the cooperation between the two countries in terms of trade, investment and services to ease trade, movement of goods and services and opening up opportunities in strategic areas like energy, technology and manufacturing. It also provides almost universal and duty-free access to Indian exports, which would be a huge milestone in Indian interactions with the Gulf region.

Key Highlights of India–Oman CEPA

• Near-universal duty-free treatment: Oman grants zero-duty treatment on approximately 98% of its tariff lines to Indian exports of the key industries: textiles, gems and jewellery, leather goods, engineering products, pharmaceuticals and automobiles.

• Tariff liberalisation by India: India agrees to liberalise tariffs on various imports of Oman, except those that are sensitive to domestic industries as protected by exclusion lists and tariff-rate quotas.

• Services and investment: The CEPA allows Indian firms 100 per cent foreign direct investment (FDI) in the services industry in Oman.

• Professional mobility: The professional mobility is improved by providing longer stays and improved quotas to Indian professionals within the mobility framework of the agreement.

• Strategic benefits: The agreement enhances bilateral trade relations, new market experiences, and facilitates the establishment of further economic collaboration between India and Oman.

About: Comprehensive Economic Partnership Agreement (CEPA)

• Definition: CEPA is a general trade and economic cooperation agreement that includes goods, services, investment and economic cooperation among countries. 

• Recent India CEPA: On 18 December 2025, India and Oman signed CEPA in an attempt to enhance trade, investment, and services. 

• Current CEPAs with India: India has CEPAs with South Korea, Japan and the UAE, which have increased market access and decreased tariffs. 

• CEPAs are designed to develop favourable access to the market, remove (or lower) tariffs, and encourage foreign investment among partners.

Conclusion (CEPA)

India and Oman are the signatories to the Comprehensive Economic Partnership Agreement (CEPA), and this is a significant move toward enhancing bilateral trade and investments. The agreement will result in increased economic collaboration, improved access to markets, and opportunities in economic areas, such as manufacturing, services, and energy, and will establish further strategic and economic relations between the two countries.