NEW DELHI: In a significant advancement for bilateral ties in West Asia, India and Oman have concluded a Comprehensive Economic Partnership Agreement (CEPA) while adopting a dedicated Joint Vision Document on Maritime Cooperation. The agreements, finalised during Prime Minister Narendra Modi’s visit to Muscat, promise to elevate economic engagement and reinforce security collaboration in the strategically vital Indian Ocean region.
The CEPA was signed on December 18, 2025, by India’s Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, in the presence of Prime Minister Modi and Sultan Haitham bin Tarik. Alongside, the two nations adopted the Joint Vision Document outlining enhanced maritime cooperation.
Expanded Market Access for Indian Exports:
The CEPA eliminates tariffs on 98.08% of Oman’s tariff lines, providing duty-free entry for 99.38% of Indian exports by value. This marks a substantial improvement from the earlier regime, where most Indian goods faced a 5% duty.
Sectors poised for major gains include:
1. Labour-intensive industries such as textiles, gems and jewellery, leather, footwear, and apparel
2. Agriculture and processed foods, including rice, fruits, vegetables, meat, fish, and dairy-related products
3. Engineering goods, electronics, machinery, automobiles, pharmaceuticals, medical devices, plastics, and chemicals
Analysts anticipate a sharp rise in Indian exports, potentially increasing by 50% within two to three years, driven by fuller access to Oman’s market and support for MSMEs, artisans, and women-led enterprises.
Enhanced Opportunities for Skilled Professionals:
The agreement includes robust commitments in services trade, with Oman opening key areas such as information technology, business and professional services, research and development, education, health, and audio-visual sectors. Indian companies gain permission for 100% foreign direct investment in major Omani services segments through commercial presence.
A notable feature is improved mobility for professionals. The quota for intra-corporate transferees rises from 20% to 50%, while contractual service suppliers can stay up to two years, extendable by another two. Liberalised entry applies to skilled experts in fields like accountancy, architecture, taxation, and medical services, facilitating greater talent flow and supporting the large Indian community of approximately 675,000 in Oman.
Strengthened Maritime and Security Cooperation:
Oman’s location at the entrance to the Persian Gulf underscores its importance for India’s maritime security and energy supply routes. During the visit, the two sides adopted a separate Joint Vision Document on Maritime Cooperation, committing to closer collaboration on regional maritime security, the blue economy, sustainable ocean resources, anti-piracy efforts, maritime domain awareness, and information sharing.
This builds on existing defence ties, including joint exercises across the armed forces and regular dialogues, positioning Oman as one of India’s closest partners in the Gulf for maritime stability.
Alignment with Economic Diversification Goals:
The CEPA supports Oman’s Vision 2040 initiative to diversify beyond hydrocarbons by attracting Indian investment in manufacturing, logistics, technology, renewable energy, and infrastructure. Both nations highlighted synergies between Vision 2040 and India’s Viksit Bharat objectives, encouraging joint ventures, supply chain integration, and private sector participation through vehicles like the Oman-India Joint Investment Fund.
Additional memoranda of understanding were signed in agriculture, higher education, and maritime heritage, further broadening cooperation.
Future Outlook:
The CEPA, India’s second with a Gulf Cooperation Council member after the UAE, is viewed as a potential model for broader regional engagements. Officials expressed confidence that the combined economic and maritime frameworks will drive sustainable growth, create employment, and foster a resilient partnership amid global uncertainties.
As bilateral trade already exceeds $10 billion annually, these accords signal a new phase of deeper integration, leveraging India’s strengths in manufacturing and services alongside Oman’s strategic positioning and investment appeal.
About the Author
