India–Oman CEPA Comes Into Force

Why in News?

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on June 1, 2026, marking a major milestone in bilateral economic relations and trade integration between the two countries.

Key Features of the Agreement

• The agreement will provide duty-free access to 98 per cent of Indian tariff lines, covering about 99 per cent of the country’s exports.
• Oman gained from tariff elimination or reduction on 78 per cent of its tariff lines.
• Indian exports to Oman totaled about $4 billion in fiscal 2026, led by refined petroleum products such as petrol ($781 million) and naphtha ($746 million).
• Oman’s strategic logistics hubs at Sohar, Duqm and Salalah provide Indian exporters enhanced access to wider GCC and East African markets.

Past FTAs

• India-Oman marks the fifth free trade agreement (FTA) implemented under the Modi government since 2014.
• It follows trade pacts rolled out with Mauritius (April 2021), the UAE (May 2022), Australia (December 2022), and the European Free Trade Association (EFTA—comprising Switzerland, Iceland, Liechtenstein, and Norway in October 2025).
• India has also signed deals with the UK (July 2025) and New Zealand (April 2026), alongside concluding trade talks with the 27-nation European Union (EU) on January 27, 2026.

Source: ET