With duty-free market access now in place, the India-Oman CEPA creates fresh opportunities for electronics manufacturers, engineering exporters and regional supply chains.
On June 1, 2026, the comprehensive economic partnership agreement (CEPA) between India and Oman officially entered into force, granting duty-free access to the vast majority of Indian exports and creating fresh opportunities for sectors including electronics, engineering goods, pharmaceuticals and textiles.
The trade pact, signed in Muscat on 18 December 2025 in the presence of Prime Minister Narendra Modi and Oman’s Sultan Haitham bin Tarik Al Said, became operational on 1 June after both countries completed their domestic approval processes.
The launch was marked by the dispatch of the first consignments benefiting from preferential tariff treatment.
The agreement provides duty-free access for 99.38% of India’s exports by value to Oman, covering 98.08% of the Gulf nation’s tariff lines. Indian engineering products, including machinery, automobiles, electrical equipment, and iron and steel products, will now enter Oman free of duties that previously ranged up to 5%.
A key beneficiary is expected to be India’s electronics industry. Oman imported around US$1.7 billion worth of electronics products in 2025, while Indian electronics exports to the country stood at US$146 million.
Under the CEPA, all electronics categories, including electrical boards, cabinets, static converters and television reception equipment, will receive tariff certainty through zero-duty access.
The agreement is also expected to support Indian manufacturers participating in production-linked incentive (PLI) schemes by enhancing their competitiveness in the Omani market and potentially increasing their participation in regional supply chains.
Speaking at the operationalisation ceremony, Commerce and Industry Minister Piyush Goyal said the pact would strengthen India’s economic integration with regional and global value chains.
“By delivering significant benefits to labour-intensive sectors, it will support job creation, drive investment and enable Indian enterprises to compete on an equal footing with suppliers from countries enjoying preferential market access,” he added.
Commerce Secretary Rajesh Agrawal said the CEPA arrives at a time when global supply chains are undergoing significant restructuring.
“By fostering closer integration across trade, services, investment and logistics, the Agreement creates a framework for more resilient value chains, greater economic competitiveness and a stronger strategic partnership with regional and global relevance,” he said.
Bilateral trade between India and Oman reached USD 11.18 billion in the 2025-26 financial year, up from USD 10.61 billion a year earlier. Oman remains India’s second-largest trading partner in the Gulf region and serves as a logistics gateway to Gulf Cooperation Council markets and East Africa through ports such as Sohar, Duqm and Salalah.
Officials expect the CEPA to accelerate trade growth further by improving market access, strengthening investment flows and expanding cooperation across manufacturing, logistics and services.
