India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA), which provides duty-free access for 98.08% of Indian goods exported to Oman. Signed in Muscat by Commerce Minister Piyush Goyal and Omani officials, the deal marks Oman’s first bilateral trade pact since 2006. The agreement will eliminate tariffs on major labor-intensive sectors, including textiles, leather, footwear, and engineering products.
In addition to merchandise, the CEPA offers significant breakthroughs in the services sector and the movement of professionals. Oman has expanded the quota for Intra-Corporate Transferees from 20% to 50% and increased the permitted stay for contractual service suppliers from 90 days to up to four years. Indian companies will also be allowed 100% FDI in major service sectors within Oman.
Strategically, the pact serves as a key gateway for Indian goods into the wider Middle East and Africa. It also includes a first-of-its-kind commitment on traditional medicine, opening new doors for India’s Ayush and wellness industries in the Gulf region. Currently, bilateral trade between the two nations exceeds $10 billion annually.