India–Oman CEPA Signed to Boost Trade and Investment

India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a major milestone in India’s economic engagement with the Gulf region. Also reinforcing its strategy of forging high-quality trade agreements with non-competing economies. The agreement was signed in the presence of Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik, underscoring its strategic and political significance.

Overview

• Signed by Commerce & Industry Minister Shri Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion H.E. Qais bin Mohammed Al Yousef.
• First bilateral trade agreement signed by Oman since its FTA with the USA in 2006.
• India’s second Free Trade Agreement in the last six months, after the UK.
• Bilateral trade currently exceeds USD 10 billion, with significant scope for expansion.

Major Features of India–Oman CEPA

1. Unprecedented Market Access for Indian Goods

• Zero-duty access on 98.08% of Oman’s tariff lines
• Covers 99.38% of India’s exports by value
• Immediate tariff elimination on 97.96% of tariff lines

Key Beneficiary Sectors,

• Textiles, leather, footwear
• Gems & jewellery
• Engineering products
• Plastics, furniture
• Agricultural products
• Pharmaceuticals & medical devices
• Automobiles

This is expected to generate employment and empower MSMEs, artisans, and women-led enterprises.

2. India’s Tariff Commitments

• India offers tariff liberalisation on 77.79% of tariff lines
• Covers 94.81% of imports from Oman by value

Sensitive sectors protected through,

• Exclusion lists
• Tariff Rate Quotas (TRQs)
• Excluded Sectors Include:
• Dairy, tea, coffee, rubber, tobacco
• Gold & silver bullion, jewellery
• Footwear, sports goods
• Metal scraps

3. Ambitious Services Commitments (First by Oman)

Oman has made first-ever comprehensive services commitments, covering 127 sub-sectors, including,

• Computer-related services
• Business & professional services
• Audio-visual services
• R&D services
• Education and health services

This opens high-value opportunities for Indian service providers in a market where India currently accounts for only 5.31% of Oman’s services imports.

4. Enhanced Mobility for Indian Professionals (Mode 4)

For the first time, Oman has offered extensive Mode 4 commitments,

• Intra-Corporate Transferees quota increased from 20% to 50%
• Contractual Service Suppliers stay extended from 90 days to 2 years, extendable further

Liberalized entry for professionals in,

• Accountancy
• Taxation
• Architecture
• Medical and allied sectors

5. 100% FDI for Indian Companies

• Oman allows 100% Foreign Direct Investment for Indian firms in major services sectors
• Enables expansion of Indian companies through commercial presence

6. Landmark Provisions

• First-ever commitment on Traditional Medicine across all modes
• Boosts India’s AYUSH and wellness sectors
• Promotes medical value travel

Fast-tracking of pharmaceutical approvals,

• Recognition of USFcuments
• DA, EMA, UKMHRA approvals

Acceptance of GMP inspection doMutual recognition arrangements for,

• Halal certification
• India’s NPOP certification for organic products
• Provisions to address non-tariff barriers

Strategic Significance

• Strengthens India’s economic footprint in the Gulf region
• Supports India’s strategy of signing FTAs with non-competing developed economies
• Enhances employment, exports, and supply chain resilience
• Positions Oman as a strategic hub for India’s access to Middle East and Africa
• Reinforces India’s commitment to inclusive growth, while safeguarding sensitive domestic sectors

Key Takeaways

• India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) on 18 December 2025.
• Oman offers zero-duty access on 98.08% tariff lines, covering 99.38% of India’s exports.
• Major gains for labour-intensive sectors, MSMEs, and women-led enterprises.
• Oman made ambitious services commitments across 127 sub-sectors.
• Enhanced Mode 4 mobility for Indian professionals is a key highlight.
• 100% FDI allowed for Indian companies in major services sectors in Oman.

Question

Q. India signed the Comprehensive Economic Partnership Agreement (CEPA) on December 2025 with which country?

(A) UAE
(B) Oman
(C) Saudi Arabia
(D) UK