New Delhi, May 31: The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman will come into effect on June 1, 2026. This agreement allows several Indian labor-intensive exports to enter Oman duty-free. The Ministry of Finance issued a notification on Sunday regarding the tariff concessions for products coming from Oman, effective from the start of next month.
India and Oman signed this CEPA last December during Prime Minister Narendra Modi’s visit to Muscat. The Finance Ministry clarified that importers must prove that the relevant goods are manufactured in Oman to benefit from the tariff exemptions.
Oman has offered zero-duty access on 98.08% of its tariff lines, benefiting 99.38% of India’s exports. Key sectors include gems and jewelry, textiles, leather and footwear, sports goods, plastics and furniture, agricultural products, engineering goods, pharmaceuticals, medical devices, and automobiles. Similarly, India has proposed duty concessions on 77.79% of its tariff lines, covering 94.81% of imports from Oman. However, certain sensitive products, such as agricultural items (dairy, tea, coffee, rubber, tobacco), gold and silver jewelry, footwear, and various base metal scraps, are excluded from these concessions.
The agreement is also expected to benefit India’s service sector, with an anticipated increase in India’s share of service imports in Oman. New opportunities will arise in computer services, business, education, health, research, and professional services.
Additionally, the agreement emphasizes facilitating the movement of Indian professionals. Oman has increased the intra-corporate transfer quota from 20% to 50%. The duration for contractual service providers has been extended from 90 days to two years, with a possible two-year extension.
Recently, India has signed similar trade agreements with the UK, New Zealand, and the European Union to diversify global trade and expand access to new markets.
This agreement simplifies entry and residency conditions for skilled professionals in specific sectors such as accounting, taxation, architecture, and medical services, enhancing professional engagement.
India signed similar deals with the UK in July 2025 and with New Zealand in April 2026, and finalized a free trade agreement with the European Union on January 27 this year. These efforts are part of a broader strategy to diversify trade amid significant changes in the global economic landscape due to fluctuations in U.S. tariffs.
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