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India-Oman Trade Deal: Duty-Free Access Starts June 1
31 May
Summary
- India and Oman's CEPA takes effect June 1, offering 100% duty-free access for Indian exports.
- Key sectors like textiles and agriculture in India will see immediate benefits from the pact.
- Service professionals gain new opportunities, with Oman raising ICT ceiling from 20% to 50%.
The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is set to officially begin on June 1, ushering in a new era of economic cooperation. This pact provides Indian exporters with 100% duty-free access to the Omani market, covering a significant portion of trade value.
Immediate benefits will be observed in crucial sectors including textiles, agriculture, iron and steel, and marine products, with many tariffs being eliminated from day one. India has also secured preferential market access for its industrial goods, enhancing price competitiveness.
The agreement extends to the services sector, where Oman has made substantial commitments. Notably, the Intra-Corporate Transferees ceiling for Indian professionals has been raised from 20% to 50%, facilitating greater deployment of managerial and specialist personnel.
In return, India has protected sensitive domestic industries and agricultural products by placing specific tariff lines on its exclusion list. This ensures local sectors remain insulated from immediate liberalization impacts.
This CEPA marks a significant step in strengthening India's trade relations within the Middle East and is expected to boost bilateral trade, which reached over USD 11 billion in the 2025-26 period.
