India’s Comprehensive Economic Partnership Agreement (CEPA) with Oman formally came into effect on June 1, giving Indian exporters duty-free access across 98.08% of Oman’s tariff lines and covering 99.38% of India’s export value to the Gulf nation. The agreement represents a significant step in India’s strategy of expanding trade partnerships beyond traditional Western markets while strengthening economic integration with the Gulf Cooperation Council region.

The agreement arrives at a time when India is actively pursuing multiple bilateral trade arrangements to diversify export markets and reduce tariff barriers for domestic manufacturers. Oman is already an important trading partner for India, with bilateral trade exceeding $11 billion during FY26. The latest pact seeks to move the relationship beyond energy-linked trade and broaden opportunities across manufacturing, agriculture, pharmaceuticals, engineering goods and services.

One of the most immediate changes under the agreement is the elimination of import duties on a wide range of Indian products entering Oman. Agricultural and processed food exports such as natural honey, cashew, bakery products, chocolates, sugar confectionery, dairy products, frozen fish and eggs will gain direct price advantages in the Omani market. Indian exporters of pharmaceuticals, chemicals, textiles, plastics, electronics, engineering goods and gems and jewellery are also expected to benefit from lower trade barriers and improved competitiveness.

A notable feature of the agreement is its focus on services and mobility. Oman has committed to enhanced market access for Indian professionals, including business visitors, contractual service suppliers and intra-corporate transferees.

The pact also liberalises entry norms for professionals in sectors such as healthcare, architecture, taxation and accountancy. In addition, Oman has agreed to permit 100% foreign direct investment for Indian companies in identified services sectors, creating a wider investment platform for Indian firms seeking regional expansion.

The pharmaceutical sector could emerge as one of the major beneficiaries. The agreement introduces faster approval pathways for products already cleared by global regulators such as the USFDA, EMA and MHRA. This could reduce regulatory delays and improve market access for Indian drug manufacturers in Oman, a market that remains heavily dependent on imports.