India and Oman trade goods worth about $10 billion annually. Still, the CEPA signed last week comes at a pivotal moment for India’s trade policy as it seeks deeper market access, supply chain security and services expansion.
Mint breaks down what the India-Omani CEPA covers, who will benefit and why the deal matters beyond the headline trade numbers.
What is the trade deal with Oman?
CEPA is a broad agreement covering both trade and investment. Oman will provide zero duty access to 98% of its tariff items covering 99% of the value of Indian exports.
India has agreed to eliminate or reduce tariffs on 78% of its tariffs covering 95% of Oman’s exports. Sensitive items for India – such as dates, marbles and petrochemicals – will be allowed through limited quotas. Products including dairy products, coffee, tea, gold and silver were excluded to protect domestic producers.
What goods do India and Oman trade today?
India exports diesel, petrol, rice, iron and steel products, cosmetics and personal care products and ceramic goods to Oman.
Oman’s key exports to India include crude oil, liquefied natural gas, fertilizers, petroleum coke and various chemicals.
How will this deal benefit India?
India’s bilateral trade with Oman has slowed in recent years. After peaking at $12.4 billion in FY23, it fell to $10.6 billion in FY25. CEPA is expected to revive momentum.
Indian products such as gems and jewellery, textiles, leather footwear, engineering goods and pharmaceuticals will now enjoy duty-free access compared to earlier duties of at least 5%. The relief comes at a time when Indian exporters are facing higher US tariffs.
India’s services exports to Oman – currently just 5% of total trade – are also expected to grow.
Does the deal serve a larger strategic goal?
Yes.
India has long sought a trade deal with the six-member Gulf Cooperation Council (GCC) — Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain — but talks have stalled.
With bilateral agreements with the UAE and Oman, momentum towards a broader GCC agreement has improved.
What about India’s other trade deals?
They remain a work in progress. After the US imposed punitive tariffs, the government increased efforts to diversify export markets and reduce dependence on any single country.
Talks with the European Union, which had previously stalled, were resumed. Last week, the Dutch foreign minister said that negotiations on a trade deal between India and the EU are in the final stages and may be concluded soon. India is also in talks with New Zealand and Chile, with the India-UK trade agreement signed in May this year expected to be operationalized soon.
What is the status of India-US bilateral trade agreement?
Negotiations continue, but an agreement remains elusive. A recent visit by a US trade delegation did not yield a breakthrough, although Prime Minister Narendra Modi and President Donald Trump are in regular contact.
The US wants India to import more energy and agricultural products. While India is open to growing energy imports, opening up its agricultural sector remains a red line. Indian officials now expect an agreement by March next year.
