Bilateral FTA granting zero-duty access to 99.38% of India's exports to Oman now in effect
Oman is India's second-largest trading partner in the Gulf region and serves as a strategic gateway to the wider GCC market through its advanced port infrastructure
India and Oman today (1 June) enforced a bilateral free trade accord which offers zero-duty access for 99.38% of India's exports to the Persian Gulf country, the Indian commerce ministry said.
All zero-duty concessions under the bilateral Comprehensive Economic Partnership Agreement (CEPA) come into effect immediately, providing certainty and competitiveness to Indian exporters, the ministry said in a statement.
Earlier, under the Most Favoured Nation regime, only 15.33% of India's exports entered Oman duty-free. With CEPA, Indian exporters gain substantial price competitiveness in Oman's nearly $28 billion import market.
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Speaking on the occasion, Indian Commerce Minister Piyush Goyal said that with 99.38% of India's exports receiving duty-free access, the CEPA, signed in December last year, unlocks new opportunities for Indian exporters and professionals.
India, in turn, has offered tariff liberalisation on 77.79% of tariff lines covering 94.81% of imports from Oman by value, while maintaining strong safeguards for sensitive sectors.
Products including dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and key agricultural products have been kept out of CEPA in order to protect India's domestic industries, said the statement.
India is only the second country, after the United States, to secure a comprehensive bilateral trade pact with Oman.
The CEPA will strengthen India's dominance in fisheries, meat, eggs, marine products, and processed foods with duty elimination.
Oman offers a gateway to the Gulf Cooperation Council countries and East Africa and Oman's logistics hubs at Sohar, Duqm, and Salalah are expected to amplify India's regional trade connectivity.
To mark the entry into force, the first consignments availing preferential tariff benefits under the agreement, including agriculture and gems and jewellery exports from Mumbai, Kolkata, and Chennai, were flagged off.
Oman is India's second-largest trading partner in the Gulf region and serves as a strategic gateway to the wider GCC market through its advanced port infrastructure.
Bilateral trade between India and Oman reached $11.18 billion in FY2025-26, up from $10.61 billion in FY2024-25.
All marine products, including shrimp, fish, and cuttlefish, will get immediate duty-free access, replacing earlier import duties of up to 5%.
Oman's marine imports stood at $35.3 million in 2025, while India's exports accounted for only $10 million, indicating substantial untapped potential.
Import duties of up to 5% on gems and jewellery have been eliminated from day one.
Indian exporters gain a structural price advantage over competitors from Italy, Turkey, Thailand, and China.
Oman's total gems and jewellery import market is $1.07 billion annually. India's exports to Oman in this sector stood at $25.78 million in 2025, comprising $18.48 million in polished natural diamonds and $6.67 million in gold jewellery.
It is projected that exports could increase sixfold to $150 million within three years.
Clusters in Surat (diamonds), Jaipur (gemstones), Mumbai, Kolkata, and Chennai are positioned to capture this growth.
India is Oman's second-largest agricultural supplier with a 17.8% share in Omani imports. Duty elimination strengthens India's competitiveness in products such as honey, condiments, cashews, basmati rice, butter and sweet biscuits.
India currently accounts for over 94% of Oman's bovine meat imports and over 98% of fresh egg imports, making Oman one of India's most important agricultural export destinations in the Gulf region.
