India–Oman Comprehensive Economic Partnership Agreement (CEPA)

Why in News

• India and Oman signed a CEPA on 18 December 2025 in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik.
• It marks a major step in deepening India’s economic engagement with the Gulf region.

Key Features of India–Oman CEPA

Market Access for Goods

Oman’s Commitments

• Zero-duty access on 98.08% of tariff lines
• Covers 99.38% of India’s exports by value
• Immediate tariff elimination on nearly 98% of tariff lines

Major beneficiary sectors (labour-intensive):

• Textiles & garments
• Leather & footwear
• Gems & jewellery
• Engineering goods
• Plastics & furniture
• Agricultural products
• Pharmaceuticals & medical devices
• Automobiles

Impact:

• Boost to exports
• Employment generation
• Support for MSMEs, artisans, and women-led enterprises

India’s Commitments

• Tariff liberalisation on ~78% of tariff lines
• Covers ~95% of imports from Oman (by value)

Sensitive sectors protected via exclusions & TRQs:

• Agriculture & dairy
• Tea and coffee
• Precious metals
• Select labour-intensive products

Services Trade – A Major Breakthrough

• Oman has made ambitious commitments in 127 services sub-sectors
• First-ever comprehensive commitments by Oman

Mode 4 (Movement of Natural Persons) – Key Highlight

• Expanded temporary entry and stay for:
  • Intra-corporate transferees
  • Contractual service suppliers
  • Business visitors
  • Independent professionals

Mode 4 under GATS refers to the temporary movement of professionals to supply services across borders.

Investment Liberalisation

• 100% FDI permitted for Indian companies in major services sectors in Oman
• Enables Indian firms to:
  • Establish commercial presence
  • Expand operations in the Gulf region

Traditional Medicine

• Oman has made comprehensive commitments on traditional medicine across all four GATS modes
• Supports India’s strengths in AYUSH and wellness services