More Than a Trade Pact: How the India–Oman CEPA Rewrites India’s Export Story

From textile workers in Tirupur to food processors in Punjab and engineers in Pune, the India–Oman CEPA quietly reshapes livelihoods across India.

It does so not with grandstanding headlines, but through tariff lines, shipping routes, and professional visas that determine who gets to compete, who scales up, and who finds new work. Signed as a trade agreement, the India–Oman Comprehensive Economic Partnership Agreement is, at heart, a people’s pact, the kind that reaches factory floors, farms, ports, and offices far from negotiating tables.

At first glance, CEPA reads like a technical document. Look closer, and it tells a human story of opportunity unfolding across two shores of the Arabian Sea.

A Partnership Rooted in Trade and Trust

India and Oman are no strangers to commerce. Long before acronyms like CEPA existed, spice-laden dhows crossed monsoon winds between Muscat and India’s western ports. Those journeys forged habits of exchange and trust that still echo today.

Formal diplomatic ties date back to 1955, making Oman one of the first Gulf states to recognise India. Under Sultan Qaboos, India’s diaspora in Oman flourished, supported by schools, cultural centres, and a sense of belonging. Diwali celebrations in Muscat and Indian bazaars near Omani ports are reminders that diplomacy is lived, not just signed.

Against this backdrop, the CEPA provides a single, modern framework covering trade in goods and services, investment, professional mobility, and regulatory cooperation. It arrives at a moment when bilateral trade has reached USD 10.61 billion in FY 2024–25, signalling both scale and untapped potential.

Zero Duties, Real Competitiveness

At the core of the agreement lies a simple but powerful shift. From day one, India receives 100 per cent duty-free access for nearly all its exports to Oman, covering over 99 per cent of export value. Until now, only about 15 per cent of Indian exports entered Oman duty-free under MFN rules.

That change matters. Indian exports worth roughly USD 3.64 billion previously faced duties of up to five per cent. Those margins often decide whether an order is placed or lost.

For exporters from Tirupur, the knitwear capital of India, this is transformative. For years, they supplied Gulf markets through intermediaries, absorbing tariffs that squeezed already thin margins. With duties on apparel eliminated, they can now reach Omani buyers directly, strengthening order books for clusters employing hundreds of thousands, many of them women.

Each container of garments shipped to Oman carries not just fabric, but the livelihoods of thousands across India’s textile clusters.

Engineering India’s Presence in Oman’s Future

As Oman invests in infrastructure and industrial diversification, Indian engineering products are set to become partners in building the future.

Engineering goods already form India’s largest export basket to Oman, touching USD 875.83 million in FY 2024–25. Zero-duty access replaces tariffs that went up to five per cent, immediately improving price competitiveness.

Demand is coming from roads, ports, power systems, machinery, automobiles, and electrical equipment. Projections suggest exports could rise to USD 1.3–1.6 billion by 2030.

For Indian MSMEs, this is more than a sales opportunity. It is a chance to integrate into Oman’s industrial supply chains, learning global standards while anchoring jobs back home in Pune, Coimbatore, Faridabad, and Rajkot.

Medicines Without Borders

In a market where affordability, quality, and reliability matter most, Indian medicines find a natural and trusted home.

Oman’s pharmaceutical market is expanding steadily, projected to grow from USD 302.84 million in 2024 to nearly USD 474 million by 2031. Indian companies already enjoy trust, built over decades of supplying high-quality generics.

CEPA deepens that trust. Finished medicines, vaccines, and key APIs now enter duty-free. Regulatory fast-tracking allows marketing approvals within 90 days for products cleared by stringent regulators elsewhere. Acceptance of Good Manufacturing Practices reduces duplication and cost.

The result is quicker access for patients and predictable pathways for Indian manufacturers forging an alignment of public health and trade.

Food, Farms, and the Gulf’s Dining Table

For Indian farmers and food processors, the CEPA opens doors to one of the Gulf’s most stable and growing food import markets.

Oman imported nearly USD 6 billion worth of agricultural products in 2024. India already holds over 10 per cent market share, ranking as the second-largest supplier.

Some ties are already deep. Oman is India’s largest export destination for fresh eggs, sourcing more than 98 per cent of its imports from India. Each refrigerated shipment leaving Indian ports supports feed producers, poultry farmers, graders, packers, and logistics providers across Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra.

Duty-free access strengthens prospects for products like boneless bovine meat, butter, honey, sweet biscuits, and mixed condiments. Sensitive farm products remain protected through exclusions or phased tariff reductions, ensuring farmers are not exposed to sudden import shocks.

Seafood Finds Its Current

With duty barriers lifted, India’s seafood exports can now swim further into the Omani market.

Despite being one of the world’s largest exporters of shrimp and cuttlefish, India’s presence in Oman’s seafood imports has remained modest. CEPA removes that disconnect.

Immediate duty-free access allows seafood processed along India’s eastern and western coasts to compete on equal footing in a market where demand already exists. Expansion here is labour-intensive, generating jobs in fishing communities, cold storage, processing units, and logistics hubs.

Beyond Fabric and Fish: The Services Story

Trade in goods tells only half the story. Services, skills, and human capital form the other pillar of the India–Oman CEPA.

Oman has undertaken FTA-plus commitments across 127 services sub-sectors, including IT, telecom, education, health, tourism, R&D, and environmental services. India already enjoys a strong services surplus, with bilateral services trade reaching USD 863 million in 2024.

Mobility provisions are the standout. The ceiling for Intra-Corporate Transferees rises from 20 to 50 per cent. For the first time, Oman commits to defined professional categories, offering legal clarity to engineers, doctors, IT specialists, and educators who already contribute deeply to its economy.

A first-of-its-kind mobility provision even covers manufacturing and non-services sectors, offering predictability for Indian industrial workers. Talks on a future Social Security Agreement promise continuity of benefits and avoidance of double contributions.

Jewellery, Electronics, and the Price of Precision

Polished diamonds and gold jewellery crafted in Indian clusters originating from Gujarat to Tamil Nadu already find their way to Omani consumers. By removing residual tariffs, the CEPA lets Indian craftsmanship compete on design and quality rather than price alone, supporting skilled employment in jewellery hubs.

Electronics exports, though smaller, gain certainty. Oman imported USD 3 billion worth of electronics in 2024, while India supplied just USD 123 million. Zero-duty access across remaining items creates space for gradual expansion, particularly for MSMEs.

Chemicals and plastics also benefit from tariff elimination or reductions, supporting cooperation in petrochemicals, green hydrogen, and industrial value chains that look well beyond immediate trade flows.

Geography of Opportunity

The gains from the CEPA are geographically dispersed, reflecting the diversity of India’s export economy and the federal nature of its growth story.

Textiles from Tamil Nadu and Gujarat, marine products from coastal Andhra Pradesh and Kerala, engineering goods from Maharashtra and Haryana, food processing from Punjab and Uttar Pradesh, jewellery from Gujarat and Rajasthan, all stand to benefit.

Labour-intensive sectors see the biggest upside. Near-universal zero-duty access supports scale, capacity utilisation, and export-led job creation across clusters that anchor local economies.

Ports, Pathways, and Regional Reach

Ports such as Sohar, Duqm, and Salalah already function as logistics hubs linking the Gulf, Africa, and South Asia. Improved market access under the CEPA allows Indian exporters to use Oman not just as a destination, but as a platform for wider regional reach.

Regulatory cooperation strengthens this vision. Acceptance of EIC-issued certificates reduces inspections. Faster pharmaceutical approvals cut delays. Recognition of halal certification and India’s organic standards lowers compliance costs.

Trade flows faster when rules are predictable, and predictability is often what businesses value most.

Looking Back to Look Forward

To appreciate the CEPA’s significance, one must return to those early dhows crossing the Arabian Sea. Merchants lived for months in foreign ports, learning customs, forming families, and weaving economic ties into social ones.

Today’s agreement updates that legacy for a globalised world. It replaces uncertainty with access, tariffs with trust, and fragmented rules with a coherent framework.

Ultimately, the success of the CEPA will be reflected in stronger businesses, better jobs, and a more enduring partnership between the peoples of India and Oman.

Just as centuries ago, the tides still carry more than goods. They carry shared futures.

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