India–Oman Economic Partnership Agreement Now In Effect

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) officially came into force on Monday, 1 June 2026 , marking a major milestone in strengthening trade relations between India and Oman , Commerce and Industry Minister Piyush Goyal said.

The agreement, signed on 18 December 2025 in Muscat , became operational after both sides completed their respective internal approval processes. With this, the free trade pact now enables Indian exporters to access the Omani market under preferential tariff benefits , giving them a stronger competitive position in the Gulf region.

Goyal said the CEPA is expected to significantly benefit Indian exporters across a wide range of sectors, including textiles, leather, plastics, marine products, automobiles, sports goods, and agricultural items . These industries will now enjoy improved market access in Oman, helping them compete more effectively with exporters from other countries that do not have similar trade advantages.

To mark the implementation of the agreement, around 10 consignments of agricultural goods and gems and jewellery products were shipped from Mumbai, Kolkata, and Chennai to Oman under the new preferential tariff system. Officials said this initial movement of goods signals the immediate operationalisation of the trade framework and its practical benefits for exporters.

Oman is India’s second-largest trading partner in the Gulf region , and the CEPA is expected to further deepen this economic relationship. The country also plays a crucial role as a gateway to the wider Gulf Cooperation Council (GCC) market , supported by its advanced port infrastructure, which enhances regional connectivity and trade flows.

Bilateral trade between the two nations has shown steady growth, reaching USD 11.18 billion in FY 2025–26 , up from USD 10.61 billion in FY 2024–25 . This rise highlights the expanding commercial engagement between the two economies even before the full impact of the agreement is realised.

Officials believe the CEPA will help strengthen supply chains, boost export competitiveness, and expand market access for Indian industries. It is also seen as part of India’s broader strategy to deepen economic partnerships in the West Asian region and diversify its export destinations amid changing global trade dynamics.

The agreement is expected to provide long-term momentum to bilateral economic cooperation while opening new opportunities for businesses on both sides.