What is CEPA between Oman and India?

The Majlis A' Shura has approved the agreement on the draft Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Government of the Republic of India, which was referred to it by the Cabinet.

The Indian Cabinet on Friday approved the CEPA with tbe Sultanate of Oman, which is expected to be signed during Prime Minister Narendra Modi’s visit to Muscat on December 17–18, according to people in the know.

What are CEPA objectives

The CEPA aims to enhance trade between the two countries and increase bilateral trade flows by eliminating or reducing trade barriers, including customs duties and para-tariffs on goods of origin in both countries.

Market access

The agreement facilitates improved market access to foster a trade and investment environment and promotes economic growth, investment, and shared prosperity.

It provides fair competition, preferential treatment for goods originating in both countries, and parity with domestic products, safeguarding the interests of traders and producers on both sides.

Article 54 of the Council of Oman Law stipulates that draft economic and social agreements the Government intends to conclude or accede to must be referred by the Cabinet to Majlis A' Shura to enable it to present its views and submit its conclusions to the Cabinet for appropriate action.

Ahmed al Sharqi, Chairman of the Economic and Financial Committee and Rapporteur for the ongoing Majlis A Shura session, who presented the Committee’s report on the draft agreement, said that it examined several essential economic considerations, foremost among them the impact of the agreement on the local market, the opportunities and incentives it may provide for the national economy, and the challenges that require proactive preparation.

The session witnessed extensive discussions, focusing on the expected economic effects of the agreement and its projected implications for Oman’s economic performance. Discussions also assessed the agreement's impact on the small and medium enterprise sector.

Members emphasised the importance of evaluating domestic economic sectors that may be affected by the agreement's provisions and identifying mechanisms to mitigate potential adverse impacts, ensuring alignment with Oman’s development priorities, supporting the competitiveness of national products in local and international markets, and enhancing access to global markets.

According to the National Centre for Statistics and Information (NCSI), the non-oil exports from Oman to India were estimated at RO529 million in the first nine months of 2025, an increase of 18.6 percent from RO446 million during the same period in 2024.

The imports from India were estimated at RO1,077 million during the same period in 2025.

There are over 6,000 India-Oman joint ventures in Oman with an estimated investment of over US$776 million. The cumulative FDI equity inflow from Oman to India during April 2000 to March 2025 is US$605.57 million, according to the Indian Embassy figures on its website.

Oman is India’s 28th largest trading partner in FY 2024-2025 with total trade of US$10.61 billion, the embassy said.

As per India's PTI news agency, bilateral trade stood at around $10.5 billion (exports $4 billion and imports $6.54 billion) in 2024-25.

India's key imports were petroleum products and urea, accounting for over 70 per cent of total imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.

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