India-Oman CEPA takes effect: 98% duty-free access opens doors for textiles, pharma, MSMEs: Union Minister Mr. Piyush Goyal
- IBEF
- June 2, 2026
India and Oman have operationalised the Comprehensive Economic Partnership Agreement (CEPA) from June 1, 2026, marking a significant milestone in bilateral economic relations. Under the agreement, India will receive duty-free access on 98% of Oman’s tariff lines, covering more than 99% of Indian exports to the Gulf nation. Union Commerce and Industry Minister Mr. Piyush Goyal stated that the agreement would provide a major boost to Indian exporters and MSMEs across sectors such as textiles, sportswear, gems and jewellery, pharmaceuticals, medical devices, engineering goods, automobiles, plastics, leather, agriculture, marine products and sports goods. Oman’s strategic location and ports at Sohar, Duqm, and Salalah are expected to strengthen India’s trade connectivity with the Gulf Cooperation Council (GCC), Africa and the broader Indian Ocean region. The agreement also enables Oman to emerge as an important gateway for Indian businesses seeking to expand into regional markets.
Beyond merchandise trade, the CEPA includes enhanced commitments in services and professional mobility, facilitating temporary stays for intra-corporate transferees, business visitors, contractual service suppliers, and independent professionals. A key healthcare provision allows Indian generic medicines approved by leading international regulators to receive marketing authorisation in Oman within 90 days, improving access to affordable medicines. Oman has also agreed to lift its long-standing ban on unpolished marble exports, benefiting craftsmen and manufacturers in Rajasthan and Andhra Pradesh. The agreement complements India’s broader trade strategy, which includes recently concluded free trade agreements covering 38 developed nations and ongoing negotiations with the GCC, Canada, Chile, Israel, and the Eurasian region. India imported Rs. 66,722.40 crore (US$ 7.2 billion) worth of goods from Oman in 2025-26, highlighting the growing importance of bilateral economic engagement.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
