India-Oman CEPA Takes Effect, Giving India Duty-Free Access on 98.08% of Omani Tariff Lines
Updated
Updated · India.com · Jun 1
India-Oman CEPA Takes Effect, Giving India Duty-Free Access on 98.08% of Omani Tariff Lines
11 articles · Updated · India.com · Jun 1
June 1 marks the start of the India-Oman CEPA, under which Indian exports get 100% duty-free access across 98.08% of Omani tariff lines covering 99.38% of trade value.
That access is expected to lift India's competitiveness in Oman, with gains seen for apparel, farm and processed food products, gems and jewellery, machinery, steel, marine products and copper goods.
Indian medicines and vaccines also gain duty-free entry, while the removal of Oman's existing 5% vehicle import duty is set to benefit India's automobile sector.
Services are another target: India's services exports to Oman rose to $665 million in 2024 from $397 million in 2020, led by telecom, IT, transport and tourism.
India kept 2,789 tariff lines on an exclusion list to shield domestic industries and farmers, making the pact Modi's fifth implemented FTA as New Delhi expands trade deals.
How will the new Oman pact test India's strategy of balancing domestic protection with securing vital supply chains?
Will the deal's strict anti-fraud rules become a bigger hurdle for legitimate exporters than for illicit traders?
India-Oman CEPA 2026: Immediate Gains, 98% Duty-Free Exports, and Strategic Leverage for India
Overview
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), effective June 1, 2026, brings immediate benefits for Indian exporters and service providers. A key change is the substantial increase in the ceiling for Intra-Corporate Transferees from 20% to 50%, allowing Indian firms to send more managerial and specialist personnel to Oman. This fosters greater efficiency and capacity building. Oman’s specific commitments for professional service providers directly benefit Indian talent across crucial sectors. Additionally, the CEPA introduces faster marketing authorisation pathways for pharmaceutical products, making it easier for Indian companies to access the Omani market quickly.