New Delhi | December 19,2025 | SKY LINK TIMES
India-Oman Trade Pact Signed:
The signing of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) marks a major milestone in India’s economic engagement with the Gulf region and is expected to significantly improve market access, boost exports, and generate employment, industry experts said on Thursday.
The agreement is being widely hailed by exporters and trade bodies as a transformational pact that will enhance India’s competitiveness across both goods and services sectors.
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Near-Universal Duty-Free Access for Indian Goods
The Federation of Indian Export Organisations (FIEO), the apex body representing Indian exporters, said the CEPA secures near-universal duty-free access for Indian products entering Oman.
According to FIEO President SC Ralhan, the agreement provides:
Zero-duty access on over 98 per cent of Oman’s tariff lines
Coverage of more than 99 per cent of India’s exports by value
“This level of market access will sharply enhance the competitiveness of Indian goods in the Omani market,” Ralhan said.
Labour-Intensive Sectors to Gain the Most
Industry leaders expect significant gains for labour-intensive sectors, which are key drivers of employment in India.
Sectors likely to benefit include:
Textiles and apparel
Leather and footwear
Gems and jewellery
Engineering goods
Plastics and furniture
Agricultural and food products
Pharmaceuticals and medical devices
Automobiles and sports goods
“The agreement will generate employment and provide strong support to MSMEs, artisans, women-led enterprises and farmers across India,” Ralhan added.
Strategic Gateway to Gulf and Africa
FIEO also highlighted Oman’s strategic geographic location, describing it as a vital gateway to the Gulf and African markets.
With bilateral trade already exceeding $10 billion, the CEPA is expected to:
Help Indian exporters integrate into regional value chains
Diversify export destinations
Expand India’s global export footprint
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Major Push for Services and Professional Mobility
Beyond goods, the CEPA delivers ambitious commitments in services, covering 127 sub-sectors, including:
IT and computer-related services
Business and professional services
Research & development
Education and healthcare
Audio-visual services
These provisions are expected to unlock high-value opportunities for Indian service providers.
Industry Experts See Long-Term Corridor Growth
Prashant Mehra, Partner and India–Middle East Corridor Leader at Grant Thornton Bharat, called the agreement a significant strategic milestone.
“This is important not only because India has strengthened its Gulf trade ties after the UAE FTA in 2022, but also because Oman has shown strong confidence in India as a long-term business partner,” he said.
He added that enhanced mobility for Indian professionals and 100 per cent FDI in major services sectors in Oman will open new avenues for outbound investment from India.
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