India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) today 18 December 2025.
It marked a pivotal step in strengthening bilateral economic ties under Prime Minister Narendra Modi’s leadership.
The Commerce Minister Piyush Goyal and Oman’s Minister Qais bin Mohammed Al Yousef formalized the pact, which is India’s second FTA in six months after the UK deal.
India and Oman Comprehensive Agreement 2025
Strategic Importance
Oman serves as a vital gateway for Indian goods into the Middle East and Africa, with bilateral trade exceeding USD 10 billion annually and strong potential for growth.
Around 7 lakh Indians reside there, including historic merchant families, supporting over 6,000 Indian businesses and USD 2 billion in remittances. This CEPA deepens integration in a key Gulf partner.
Tariff Concessions
Oman grants zero-duty access on 98.08% of its tariff lines, covering 99.38% of India’s exports, with immediate elimination on 97.96% lines for gems, textiles, leather, pharma, autos, and more.
India liberalizes 77.79% of its lines (94.81% of Oman’s imports by value), using TRQs for sensitive items. Exclusions protect dairy, tea, gold, and certain labor-intensive goods.
Services and Mobility Gains
The deal unlocks Oman’s USD 12.52 billion services imports for India in IT, professional services, AV, R&D, education, and health. Mode 4 commitments boost intra-corporate transferees to 50% quota and extend stays for professionals to two years (renewable). Oman allows 100% FDI by Indians in key services, plus unique commitments on Traditional Medicine across all modes.
India and Oman Comprehensive Agreement 2025
Broader Impacts
As Oman’s first bilateral pact since its 2006 US deal, it tackles non-tariff barriers and eyes social security talks. Piyush Goyal hailed it for boosting exports, jobs, MSMEs, and supply chains while safeguarding interests. The agreement fosters inclusive growth for long-term collaboration.
