India-Oman CEPA Likely Operational Within Three Months

India and Oman are set to operationalise their Comprehensive Economic Partnership Agreement (CEPA) within the next three months, according to Commerce and Industry Minister Piyush Goyal. The agreement is expected to significantly enhance bilateral trade between the two countries, offering substantial benefits to Indian exporters across a wide range of products.

Key Features of the CEPA

The CEPA between India and Oman promises zero-duty access on over 98 tariff lines, covering 99.38% of India’s exports to Oman. This measure is designed to boost trade flows, reduce tariffs, and facilitate greater market access for Indian businesses, particularly in sectors such as textiles, chemicals, engineering goods, and processed food.

The agreement also aims to simplify customs procedures, enhance trade facilitation, and create a more predictable business environment, aligning with India’s broader strategy to strengthen economic ties with Gulf countries.

Economic Significance for India

With the operationalisation of the CEPA, Indian exporters are expected to gain a competitive edge in the Omani market, as zero-duty access lowers costs and encourages greater export volumes. Oman has been a key trading partner for India, and this agreement is anticipated to further diversify India’s export basket and strengthen the trade relationship.

The pact is also expected to enhance cooperation in investment, services, and technology transfers, fostering long-term economic collaboration. By opening up Oman’s market for a wide array of Indian goods, the CEPA could contribute to higher employment generation and growth in manufacturing sectors in India.

Statements from Officials

Commerce Minister Piyush Goyal highlighted that:

“The India-Oman CEPA is likely to be operationalised within three months. Oman has offered zero-duty access on the majority of its tariff lines, covering over 99% of India’s exports to the Gulf country. This is a significant step towards deepening our economic engagement with Oman and the Gulf region.”

Officials from both countries have been coordinating to ensure the smooth implementation of the agreement, including aligning regulatory standards, tariff schedules, and customs procedures.

Implications for Bilateral Trade

The CEPA is expected to boost bilateral trade volumes, encourage cross-border investment, and enhance collaboration in sectors such as energy, infrastructure, and technology. Indian small and medium enterprises (SMEs), in particular, are likely to benefit from easier access to Omani markets, enabling them to expand their global footprint.

Moreover, the pact signals India’s strategic commitment to strengthening ties with Gulf countries, reinforcing economic diplomacy alongside existing security and cultural partnerships.

Conclusion

The imminent operationalisation of the India-Oman CEPA marks a major milestone in India’s trade strategy, promising substantial market access, tariff benefits, and investment opportunities. By offering zero-duty access on 98 tariff lines covering 99.38% of exports, Oman provides Indian businesses with a significant boost, further consolidating India’s economic presence in the Gulf region.

The CEPA is expected to catalyse bilateral trade, foster deeper economic cooperation, and support India’s export-driven growth strategy, making it a landmark development in India-Gulf relations.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.