Prime Minister Narendra Modi Leads India to Major Trade Win With Oman Through CEPA Deal

New Delhi: Along with Indian investors, investors from America and other countries are waiting for the India-US trade deal. Meanwhile, US President Donald Trump increased the market's concerns by hinting at imposing new tariffs on Indian rice. Under the leadership of Prime Minister Narendra Modi, India has signed an important trade agreement with Oman, which is expected to provide huge benefits to Indian exporters.

What is the CEPA agreement with Oman?

This agreement between India and Oman is called the Comprehensive Economic Partnership Agreement (CEPA). This deal will further strengthen India's economic and strategic hold in the Gulf countries. This is India's second-largest free trade agreement in West Asia. Earlier, India had signed such an agreement with the UAE two years ago.

How will Indian exporters get the most benefit from this deal?

Indian exporters will get the biggest benefit from this agreement. Under CEPA, about 98 percent of India's exported goods can be sold in Oman without any duty. With this, Indian goods will become cheaper there, and their demand is likely to increase.

In return, India will also remove import duty on about 77 percent of the products coming from Oman. However, some important sectors like agricultural products, dairy products, oil, and gas have been kept out of this exemption.

On which goods will relief be given from Oman?

There will be zero duty in India on dates, marble, and some petrochemical products coming from Oman, but there will be a fixed limit. That means they can be imported without duty only up to the specified quantity. This balance has been created keeping in mind the interests of both the countries.

What is the current trade between India and Oman?

In the financial year 2025, India had exported about $4.1 billion to Oman. Whereas India imported $6.6 billion from Oman. These figures show that trade between the two countries is already strong, and after this agreement, it may increase further.

Why was the tax system in Oman difficult for Indian companies?

At present, a 5 to 6 percent import duty is imposed on about 85 percent of the products in Oman. On some food products this duty reaches up to 100 percent. Due to this, it was becoming difficult for Indian companies to survive there. But these additional charges will gradually start being removed from the first quarter of 2026.

What is India's plan in the electronics sector?

India plans to make Oman a major supplier of electronic products. Currently the UAE is India's main market in this region, but after CEPA the demand for Indian electronics may increase rapidly in Oman also.

The service sector and jobs also benefit

This agreement is not limited to trade in goods only. This will also open avenues for services, the professional sector, and jobs. Relaxation of visa rules will make it easier for Indian professionals to work in Oman. Oman's market will now also be open for India's AYUSH, Ayurveda, and herbal products. Indian traditional medicine and natural products can get great benefit from this.

Will the service sector and jobs also benefit from this agreement?

Under this agreement, Oman will speed up the process of approving Indian medicines. Till now it took a long time for Indian medicines to get approval there. Apart from this, Oman will also recognize India's Halal and organic certificates, which will make the export of food products easier. There is also a possibility of a social security agreement between India and Oman soon. With this, Indians working in Oman can get benefits related to pension and social security in the future.

Why is it being said that this deal is beneficial for both the countries?

Overall, this agreement is a win-win deal for both India and Oman. This will increase India's exports and create new employment opportunities, and Indian companies will get an opportunity to strengthen their presence in Gulf countries.