The India-Oman CEPA: A New Era of Strategic and Economic Synergy

Formally signed on December 18, 2025, at Al Baraka Palace in Muscat, the India-Oman Comprehensive Economic Partnership Agreement (CEPA) represents a landmark achievement in the 70-year relationship between the two nations. This comprehensive pact covers nearly every major economic sector, including energy (oil, gas, and renewables), technology, manufacturing, healthcare, and logistics.

The agreement is designed to dramatically reduce trade barriers: Oman will eliminate duties on 98% of its tariff lines, which accounts for approximately 99.4% of India’s current exports to the Sultanate. Major Indian sectors like gems and jewelry, textiles, pharmaceuticals, and engineering goods are set for immediate duty-free access. In return, India has liberalized roughly 77–78% of its tariff lines, covering 94–95% of Omani imports by value, though it maintains a sensitive list excluding items like dairy, tea, coffee, and precious metals.

Beyond trade in goods, the CEPA facilitates 100% foreign direct investment (FDI) for Indian companies in key Omani service sectors and enhances the mobility of professionals through expanded visa quotas and longer durations for intra-corporate transfers. Strategically, the deal aligns Oman’s Vision 2040 with India’s growth agenda, positioning Oman as a vital gateway for India to the Persian Gulf and the Strait of Hormuz. With bilateral trade already exceeding US$10 billion, officials and analysts expect the agreement to double trade volumes, spur job creation, and catalyze significant new investments in green hydrogen, infrastructure, and innovation hubs.