India, Oman sign trade pact, to allow duty-free access for over 99% of Indian exports

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.

India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, the second day of Prime Minister Narendra Modi's visit to the Gulf country, giving most Indian exports, including textiles, duty-free access.

The CEPA gives India zero-duty access on 98.08 percent of Oman’s tariff lines, covering 99.38 percent of Indian exports by value.

"All major labour-intensive sectors including gems & jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles receive full tariff elimination. Out of the above, immediate duty elimination is being offered on 97.96 percent tariff lines," the commerce ministry said in a statement.

India will cut duties on about 78 percent of its tariff lines, covering nearly 95 percent of imports from Oman, with sensitive products given access mainly through tariff-rate quotas.

India’s services sector is also set to benefit significantly from the trade agreement.

Oman imports $12.52 billion worth of services globally, while India’s share is just 5.31 percent, highlighting strong growth potential.

The agreement opens opportunities for Indian firms across sectors such as IT, business and professional services, education, health, R&D, and audio-visual services, supporting job creation and deeper commercial ties, the statement added.

Apart from the above, provisions in the trade deal also address non-tariff barriers persisting despite duty concessions, limiting real market access.

Commerce and Industry Minister Piyush Goyal thanked Prime Minister Modi for his leadership, saying the India–Oman CEPA strengthens bilateral ties, provides near-universal duty-free access for Indian goods, expands services opportunities, and improves mobility for professionals, while supporting inclusive growth and protecting national interests.

Talks for the trade agreement began in November 2023 and concluded in August 2025 after five rounds of negotiations.

India has emerged as Oman’s third-largest trading partner, while Indian investments in the Sultanate have more than tripled since 2020, crossing $5 billion.

These investments span sectors such as green steel, green ammonia, aluminium manufacturing, renewable energy and logistics.

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.

The pact with Oman is the second Free Trade Agreement signed in the last six months, after the one with the United Kingdom, and is part of a strategy to secure deals with developed economies that do not compete with India’s labour-intensive sectors while offering growth opportunities for Indian businesses.