India and Oman Forge New Economic Partnership with CEPA

India has officially entered into a Comprehensive Economic Partnership Agreement (CEPA) with Oman, becoming the second country after the US to do so. This agreement, which took effect on June 1, 2026, is expected to significantly enhance trade relations and open new opportunities for Indian exporters. Commerce Minister Piyush Goyal highlighted the CEPA's potential to benefit various sectors, including agriculture and MSMEs, while also strengthening India's position in regional and global markets. With duty-free access for a majority of exports, this partnership is set to transform economic cooperation between the two nations.

By Narendra Chaudhary Jun 1, 2026, 17:04 IST

India Secures Comprehensive Economic Partnership Agreement with Oman

Photo: IANS

New Delhi, June 1: India has achieved a significant milestone by becoming the second country, following the United States, to establish a Comprehensive Economic Partnership Agreement (CEPA) with Oman. This trade agreement, which officially took effect on June 1, marks a pivotal moment in the economic relations between the two nations and sets the stage for enhanced strategic trade and investment collaboration.

Commerce and Industry Minister Piyush Goyal emphasized that the CEPA is a landmark development in India's relationship with Oman, aligning with Prime Minister Narendra Modi's vision of creating trade partnerships that benefit various sectors, including agriculture, fisheries, youth, women, entrepreneurs, and small and medium enterprises (MSMEs).

“This Agreement will significantly enhance our presence in the Gulf region. With 99.38% of Indian exports enjoying duty-free access, it opens up new avenues for our exporters and professionals,” Goyal stated during a press conference. He described Oman as a reliable partner and a crucial link to the Gulf and East Africa.

Goyal further noted that the CEPA will elevate opportunities for Indian businesses, strengthening their integration into both regional and global value chains. By providing substantial advantages to labor-intensive industries, it is expected to foster job creation, stimulate investment, and allow Indian companies to compete fairly with suppliers from nations that have preferential access.

The CEPA between India and Oman was signed on December 18, 2025, in Muscat, with the presence of PM Modi and Sultan Haitham bin Tarik Al Said of Oman. Following the completion of necessary internal procedures by both parties, the agreement came into effect on June 1, 2026.

In the fiscal year 2025-26, bilateral trade between India and Oman reached $6.18 billion, showing an upward trend from $5.61 billion in the previous fiscal year.

Commerce Secretary Rajesh Agrawal remarked that as global trade dynamics evolve due to supply chain diversification and the rise of new economic corridors, the CEPA positions both India and Oman to capitalize on these changes.

“The India-Oman CEPA injects new vitality into our economic partnership, built on complementary strengths, enhanced regulatory cooperation, and a mutual commitment to growth,” he added.

With this agreement, Indian exporters can now compete on equal or more favorable terms compared to suppliers from countries lacking preferential trade agreements with Oman. Oman’s strategic logistics centers in Sohar, Duqm, and Salalah offer Indian exporters improved access not only to Oman but also to broader GCC and East African markets.