The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman came into force on Monday, June 1, the Ministry of Commerce and Industry said.
Union Commerce and Industry Minister Piyush Goyal and Oman's Ambassador to India Issa Saleh Al Shibani marked the operationalisation of the pact.
The first consignments availing preferential tariff benefits under the agreement, including agricultural products and gems and jewellery exports, were flagged off from Mumbai, Kolkata and Chennai.
The agreement, signed in Muscat in December 2025 in the presence of Prime Minister Narendra Modi and Oman's Sultan Haitham bin Tarik Al Said, makes India only the second country after the United States to secure a comprehensive bilateral trade pact with Oman.
The CEPA is expected to boost bilateral trade, facilitate greater market access for Indian goods and services, create new opportunities for professionals, and strengthen India's economic integration with the Gulf Cooperation Council (GCC) region and East Africa.
Oman is India's second-largest trading partner in the Gulf region after the UAE and serves as an important logistics gateway to GCC countries and East African markets through its ports at Sohar, Duqm and Salalah.
According to the Commerce Ministry, the pact provides duty-free access to 99.38% of India's exports to the Gulf nation by value, covering 98.0% of Oman's tariff lines.
Before the agreement, only around 15% of India's exports entered Oman duty-free under the Most Favoured Nation (MFN) regime.
The immediate elimination of tariffs is expected to improve the competitiveness of Indian products in Oman's import market, estimated at nearly USD 28 billion.
Which sectors stand to gain?
The ministry said the agreement is expected to strengthen India's exports in labour-intensive sectors such as agriculture, marine products, textiles, gems and jewellery, pharmaceuticals, engineering goods, footwear and automobiles.
"Oman is our trusted partner, a bridge for our people and a gateway to the Gulf and East Africa," Goyal said.
The agreement will "support job creation, drive investment and enable Indian enterprises to compete on an equal footing with suppliers from countries enjoying preferential market access," he added.
The ministry said Oman's strategic logistics hubs at Sohar, Duqm and Salalah would provide Indian exporters greater access to markets across the Gulf Cooperation Council (GCC) region and East Africa.
Under the agreement, all marine products, including shrimp, fish and cuttlefish, will enjoy immediate duty-free access.
Import duties of up to 5% on gems and jewellery have also been eliminated from day one, a move expected to provide an advantage over competitors from countries such as Italy, Turkey, Thailand and China.
Agricultural products such as basmati rice, onions, potatoes, cashew kernels, honey, butter, sweet biscuits and mangoes are also expected to benefit from duty-free access.
What are the gains for pharmaceuticals?
The pact further provides zero-duty access for medicines, vaccines and pharmaceutical ingredients.
Medicines and pharmaceutical products approved by regulators such as the US Food and Drug Administration (USFDA), European Medicines Agency (EMA), UK's Medicines and Healthcare products Regulatory Agency (MHRA) and Australia's Therapeutic Goods Administration (TGA) will receive marketing authorisation in Oman within 90 days in many cases.
The move is expected to reduce compliance burdens and accelerate entry into Oman's pharmaceutical market, valued at over USD 300 million and projected to grow further.
How will services and professionals benefit?
Oman has offered market access commitments across 127 sub-sectors, covering areas such as information technology, engineering, healthcare, education, financial services, construction, tourism and telecommunications.
For the first time in a bilateral FTA, Oman has made specific commitments for categories of professionals including engineers, doctors, accountants, IT professionals, teachers and consultants.
The ceiling for intra-corporate transferees has been raised from 20% to 50%.
The pact also provides defined mobility pathways for professionals.
Business visitors will be allowed to stay in Oman for up to 90 days, independent professionals for up to 180 days, and intra-corporate transferees for up to four years.
The provisions are expected to benefit nearly 6,000 India-Oman joint ventures.
Has India opened its market as well?
India has offered tariff liberalisation on about 78 per cent of tariff lines, covering nearly 95 per cent of imports from Oman by value.
However, it has excluded several sensitive sectors from tariff concessions, including dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather and spices.
What trade facilitation measures are included?
The ministry said Oman would accept certificates issued by India's Export Inspection Council (EIC), reducing compliance requirements and facilitating faster clearance of Indian products at Omani ports.
India's organic certification system and halal certification framework have also been recognised.
Commerce Secretary Rajesh Agrawal said the CEPA would help both countries take advantage of evolving global supply chains and strengthen integration across trade, services, investment and logistics.
"The India-Oman CEPA brings new energy to our bilateral economic engagement, anchored in complementary strengths, deeper regulatory cooperation and a shared commitment to growth," he said. "The agreement is tariff liberalization PLUS: it enhances market access, facilitates service trade and provides greater predictability for businesses operating across both markets."