India-Oman Free Trade Pact to Strengthen Bilateral Trade

India and Oman are set to operationalise their Comprehensive Economic Partnership Agreement (CEPA) within the next three months, a move expected to infuse fresh energy into bilateral trade. Commerce and Industry Minister Piyush Goyal confirmed that Oman has offered zero-duty access on over 98 tariff lines, covering 99.38% of India’s exports to the Gulf country.

Historical Maritime Ties Highlighted by PM Modi

Speaking on the pact, Prime Minister Narendra Modi emphasized the deep-rooted trading links between India and Oman, tracing back centuries from Mandvi in Gujarat to Muscat in Oman. PM Modi stated that these historical connections have formed the bedrock of vibrant commercial exchanges today.

“Our shared maritime trade heritage has enabled India and Oman to build a robust foundation for modern economic cooperation. This agreement is a continuation of that legacy and will bring mutual benefits to our people and businesses,” PM Modi remarked.

Key Features and Economic Benefits

The CEPA offers zero-duty access on 98 of Oman’s tariff lines, facilitating smoother trade flows for key sectors including textiles, chemicals, engineering goods, and processed food. By reducing tariffs and easing market entry, Indian exporters are poised to gain a competitive advantage in Omani markets.

Officials have emphasized that the agreement will simplify customs procedures, enhance trade facilitation, and create a predictable business environment. These measures align with India’s broader strategy to strengthen economic ties with Gulf countries and encourage private sector investment.

Implications for Bilateral Trade

The pact is expected to significantly boost India-Oman trade volumes, particularly for small and medium enterprises (SMEs) that seek expanded market access. Beyond trade, the CEPA also encourages collaboration in investment, services, technology transfer, and infrastructure development, fostering long-term economic engagement.

Experts note that the agreement will contribute to higher employment generation and growth in India’s manufacturing and export sectors, while reinforcing India’s strategic footprint in the Gulf region.

Statements from Officials

Commerce Minister Piyush Goyal highlighted:

“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 will provide Indian exporters with significant opportunities to grow their businesses.”

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

Strengthening Strategic and Economic Ties

By operationalising the CEPA, India and Oman aim to deepen bilateral economic engagement, enhance trade flows, and strengthen partnerships in energy, technology, and infrastructure. The pact also underscores India’s commitment to building stronger Gulf relations in tandem with security and cultural cooperation.

For Indian exporters, the agreement offers a unique chance to tap into Oman’s market with reduced tariffs, facilitating cost-effective exports and increased competitiveness. It also signals a broader opportunity for Indian businesses to explore investment and joint venture prospects in the Gulf.

Conclusion

The India-Oman CEPA, expected to be operational within three months, represents a landmark step in India’s trade and diplomatic strategy. By offering zero-duty access on 98 tariff lines covering 99.38% of Indian exports, the pact strengthens economic and strategic ties, while honoring the centuries-old maritime trading legacy highlighted by PM Modi.

With enhanced trade facilitation, investment opportunities, and stronger bilateral cooperation, the CEPA is set to catalyse mutual growth, innovation, and prosperity for both India and Oman.

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.