MUSCAT: The Ministry of Commerce, Industry and Investment Promotion has confirmed that the Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Republic of India grants preferential access to 97.4 per cent of Omani goods exported to the Indian market, marking a major milestone in bilateral economic relations.
The Ministry said the agreement reflects the depth of the long-standing partnership between the two countries and builds on the outcomes of the Royal Visit of His Majesty Sultan Haitham bin Tarik to India. Following the visit, Oman reactivated negotiations through a comprehensive economic, legal and technical approach aimed at maximising national benefits and supporting priority sectors.
Negotiations, which ran from 2023 to 2025 across five main rounds, were supported by specialised studies, including an economic assessment by Deloitte & Touche. The study highlighted the agreement’s positive impact on tariff liberalisation, export growth and investment flows, as well as its potential to enhance the competitiveness of Omani products abroad.
Trade between Oman and India reached around $7 billion in 2024, positioning India as one of Oman’s key trading partners, particularly for non-oil exports such as polyethylene, urea, gypsum, ethylene and metal-related products. Under the agreement, overall market access for Omani goods to India stands at about 77.8 per cent, with enhanced concessions for strategically important products. In return, Oman will gradually liberalise customs duties on 99.22 per cent of Indian goods, in line with national economic priorities and industry protection policies.
The agreement consists of 16 chapters covering trade in goods and services, customs procedures, rules of origin, trade remedies, intellectual property, the movement of natural persons, SMEs and economic cooperation. It also includes safeguards such as anti-dumping and countervailing measures, while preserving Omanisation policies and professions reserved for Omanis.
India ranks among the top ten foreign investors in Oman, with investments totalling around RO 286 million in the first quarter of 2025 across sectors including steel, fertilisers, clean energy, healthcare and petrochemicals. The Ministry expects CEPA to further support food and drug security, digital trade, logistics, mining, innovation, tourism and emerging industries aligned with Oman Vision 2040.
With Indian tariffs averaging around 17 per cent before the agreement, CEPA is set to significantly lower trade barriers, giving Omani firms access to a vast market valued at more than $17 trillion. A national rapid intervention team will monitor implementation, as Oman moves towards ratification and deeper integration into the global trading system. — ONA
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