India and Oman are set to sign a Comprehensive Economic Partnership Agreement (CEPA), opening significant opportunities in sectors like textiles, automobiles, and food processing. The agreement will provide India with access to 98% of its products in Oman and includes major concessions in services. Minister Piyush Goyal described Oman as a strategic gateway for Indian goods into the Gulf region, Africa, and Central Asia.
Bilateral trade between the two nations currently stands at $10.6 billion, with India having a trade deficit as imports exceed exports by $2.5 billion. Key Indian exports include light oils, rice, and electrical machinery, while imports are dominated by crude oil, LNG, and urea. Currently, over 80% of Indian goods enter Oman at a 5% average tariff, but the new deal will eliminate duties on nearly all items.
Beyond merchandise trade, the agreement proposes deeper collaboration in renewable energy, including green hydrogen and ammonia. Cooperation is also planned in multimodal logistics, port co-development, and the startup ecosystem. With over 6,000 joint ventures already in place, the CEPA is expected to further strengthen India’s strategic and investment footprint across the Middle East.