India and Oman Sign Comprehensive Trade Pact, Boosting Bilateral Relations

The trade relationship between India and Oman is poised for significant growth following the official entry into force of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) on June 1, 2026. This landmark agreement, which follows bilateral trade reaching $11.18 billion in FY 2025–26, grants zero-duty access for 99.38% of Indian exports to Oman.

The CEPA directly supports the long-range development plans of both nations, including India's Viksit Bharat 2047 and Oman Vision 2040. It aims to foster economic diversification and enhance digital-maritime trade infrastructure. A key benefit is the establishment of a direct framework to protect supply chains for essential imports like oil, gas, and urea, bypassing critical chokepoints such as the Strait of Hormuz.

Under the new framework, pharmaceutical products already approved by major global regulatory agencies will receive local marketing authorization in Oman within 90 days. This offers pharmaceutical exporters enhanced market predictability by allowing them to leverage existing clinical datasets and Western reference licenses for swift, low-tariff distribution.

Furthermore, Oman has opened up 127 services sub-sectors to Indian companies, the most comprehensive services offer ever made by a Gulf Cooperation Council (GCC) country to India. This includes legally binding mobility pathways, relaxed foreign investment rules, and eliminated trade barriers for sectors such as accounting, taxation, architectural planning, urban engineering, legal consultancies, healthcare, education, R&D, telecommunications, financial services, tourism, and advanced construction engineering.