New Delhi, June 1: The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on Monday, opening duty-free access for nearly all Indian exports to Oman and creating new opportunities for sectors ranging from agriculture and pharmaceuticals to gems, jewellery and engineering goods.
The agreement, signed in Muscat on December 18, 2025, in the presence of Prime Minister Narendra Modi and Oman's Sultan Haitham bin Tarik Al Said, officially entered into force after both countries completed their domestic approval processes.
While the trade pact marks a major milestone in India's engagement with the Gulf region, the bigger question for businesses is: Who stands to gain the most from the India-Oman CEPA?
What Is the India-Oman CEPA?
The Comprehensive Economic Partnership Agreement is a broad-based trade and investment pact that goes beyond tariff reductions. It covers goods, services, professional mobility, investment facilitation, regulatory cooperation and trade facilitation measures.
The agreement provides duty-free access for 99.38% of India's exports by value, covering more than 98% of Oman's tariff lines, making it one of the most comprehensive market-access arrangements secured by India in the Gulf region.
Previously, only about 15% of Indian exports entered Oman duty-free under the Most Favoured Nation (MFN) regime.
Why Does Oman Matter to India?
Oman is India's second-largest trading partner in the Gulf region and serves as a gateway to the wider GCC and East African markets through its ports at Sohar, Duqm and Salalah.
Bilateral trade reached USD 11.18 billion in FY 2025-26, up from USD 10.61 billion a year earlier, highlighting growing economic ties between the two countries.
Which Indian Sectors Will Benefit Most?
Gems and Jewellery
One of the biggest beneficiaries could be India's gems and jewellery industry.
Oman has eliminated import duties of up to 5% on gems and jewellery from day one, giving Indian exporters a competitive edge over rivals from China, Turkey, Italy and Thailand.
India exported around USD 25.78 million worth of gems and jewellery to Oman in 2025. Government estimates suggest exports could increase nearly six-fold to USD 150 million within three years.
Manufacturing hubs such as Surat, Jaipur, Mumbai, Kolkata and Chennai are expected to benefit significantly.
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Agriculture and Food Products
Indian farmers and food processors could also see substantial gains.
The agreement removes duties on products including honey, cashews, condiments, butter, sweet biscuits and several agricultural exports.
India already commands a dominant share of Oman's imports of bovine meat and fresh eggs. Mango varieties such as Alphonso, Kesar and Dasheri are also expected to become more competitive in Gulf markets.
States including Uttar Pradesh, Punjab, Haryana, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu are likely to benefit from increased agricultural exports.
Marine Products
All marine products, including shrimp, fish and cuttlefish, now receive immediate duty-free access to Oman.
Indian seafood exporters currently account for only a fraction of Oman's marine imports, leaving significant room for expansion.
The agreement is expected to support exporters in coastal states such as Andhra Pradesh, Kerala, Tamil Nadu and Gujarat.
Pharmaceuticals
India's pharmaceutical industry secured one of the most significant regulatory breakthroughs under the agreement.
Medicines, vaccines and pharmaceutical ingredients will enjoy duty-free access. Products already approved by major global regulators such as the USFDA, EMA and UK MHRA will receive faster marketing authorization in Oman, reducing approval timelines and compliance costs.
With Oman's pharmaceutical market projected to grow from USD 302 million in 2025 to nearly USD 474 million by 2031, Indian drugmakers are expected to gain a larger share of the market.
Electronics and Engineering Goods
Engineering products, machinery, automobiles and electrical equipment will now enjoy zero-duty market access.
India's engineering exports to Oman already exceed USD 875 million annually, and industry projections suggest exports could rise to between USD 1.3 billion and USD 1.6 billion by 2030.
Electronics manufacturers operating under India's Production Linked Incentive (PLI) schemes are also expected to benefit.
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