The agreement, signed in December last year during Prime Minister Narendra Modi's visit to Muscat, sets an ambitious trajectory for bilateral trade. Exports from a baseline of roughly $4.06 billion are targeted to cross the $6 billion mark in the near term, with a medium-term goal of reaching $10 billion.

Near-Total Duty-Free Access for Indian Goods

The terms of the agreement are substantially favourable for Indian exporters. Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India's current exports to Oman. All major labour-intensive sectors stand to benefit from full tariff elimination, including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering goods, pharmaceuticals, medical devices and automobiles.

On its part, India is offering tariff liberalisation on 77.79 per cent of its total tariff lines, covering 94.81 per cent of India's imports from Oman by value. For Omani products of export interest that are sensitive to the Indian market, liberalisation is offered primarily through a tariff-rate quota mechanism rather than outright elimination.

India has also protected a defined set of sensitive sectors by placing them in the exclusion category entirely, with no concessions offered. These include agricultural products such as dairy, tea, coffee, rubber and tobacco; gold and silver bullion and jewellery; labour-intensive products including footwear and sports goods; and scrap of various base metals. The Finance Ministry issued the formal notification on duty concessions for Omani goods on Sunday, with effect from June 1.

Services and Professional Mobility

Beyond goods trade, the CEPA opens significant new ground for India's services sector. Oman's total global services imports stand at $12.52 billion, with India currently accounting for just 5.31 per cent of that basket, a figure that points to considerable untapped potential for Indian service providers.

Oman has extended substantial commitments across a broad range of services sectors including computer-related services, business and professional services, audio-visual services, research and development, education and health services. These commitments are expected to unlock new commercial opportunities, support high-value job creation and deepen economic engagement between the two countries.

A particularly notable feature of the agreement is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered wide-ranging commitments under Mode 4, including a significant increase in the quota for Intra-Corporate Transferees from 20 per cent to 50 per cent. The permitted duration of stay for Contractual Service Suppliers has also been extended from 90 days to two years, with the possibility of a further two-year extension. More liberal entry and stay conditions have additionally been provided for skilled professionals in accountancy, taxation, architecture, and medical and allied services.

Part of a Broader Trade Push

The India-Oman CEPA is the latest in a series of trade agreements India has concluded as part of its effort to diversify trade relationships amid the sweeping shifts in the global economic landscape triggered by US tariff turbulence. India signed a similar deal with the United Kingdom in July 2025 and with New Zealand in April 2026, and concluded talks for a free trade agreement with the 27-nation European Union on January 27 this year. Together, these agreements represent a markedly more assertive approach to trade diplomacy than India has historically pursued, with the Oman pact adding a strategically important Gulf dimension to that expanding network.