The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, 2026, is expected to play a strategic role in securing India's fertiliser and industrial raw material supplies amid continuing geopolitical tensions in West Asia. The agreement provides duty-free access for nearly 99% of Indian exports to Oman while deepening bilateral trade and investment ties.

Oman has emerged as one of India's most important partners for energy and fertiliser imports. During FY26, India imported approximately $7.2 billion worth of goods from Oman, including crude oil, liquefied natural gas (LNG), fertilisers, ammonia, and methanol. The CEPA is expected to further strengthen these supply chains by facilitating smoother trade flows and encouraging greater commercial cooperation between the two countries.

The agreement assumes greater significance as India seeks to diversify fertiliser sourcing amid disruptions caused by the Iran conflict. Supply constraints in the Gulf region have pushed up global fertiliser prices and raised concerns about the availability of key nutrients such as urea and ammonia. India has already taken several measures to secure imports and protect domestic agricultural production ahead of the sowing season.

Oman has reportedly indicated its willingness to increase exports of fertilisers and petrochemicals to India under the new trade framework. Unlike several Gulf countries whose exports rely heavily on the Strait of Hormuz, Oman possesses major ports located outside the chokepoint, providing India with a relatively reliable supply route during periods of regional instability.

Beyond fertilisers, the CEPA is expected to enhance cooperation across sectors including chemicals, engineering goods, agriculture, pharmaceuticals, and services. The agreement grants Indian exporters duty-free access across more than 98% of Oman's tariff lines, improving competitiveness for a wide range of products while reinforcing the strategic economic partnership between the two nations.