India-Oman CEPA trade deal takes effect on Monday

India and Oman’s Comprehensive Economic Partnership Agreement (CEPA), signed in December 2025, comes into effect today, June 1, 2026. The deal expands opportunities in services and professional mobility, strengthening bilateral trade and economic ties.

New Delhi: India-Oman Comprehensive Economic Partnership Agreement (CEPA) offering zero duty access to a range of Indian labour-intensive exports, will kick in from Monday.

The Finance Ministry on Sunday issued notification on duty concessions on Omani goods under trade pact with India, which will come into effect from June 1.

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India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) in December last year during Prime Minister Narendra Modi’s visit to Muscat.

Partnership Agreement (CEPA) was signed in December last year.

“Provided that the (duty) exemption shall be available only if the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the Sultanate of Oman,” the finance ministry stated.

This notification will come into force on June 1, 2026, the finance ministry said.

Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to Oman. All major labour-intensive sectors including Gems & Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and Automobiles receive full tariff elimination.

India is offering tariff liberalisation on 77.79 per cent of its total tariff lines which covers 94.81 per cent of India’s imports from Oman by value. For the products of export interest to Oman and which are sensitive to India, the offer is mostly a tariff-rate quota (TRQ) based tariff liberalisation.

To safeguard its interest, sensitive products have been kept in the exclusion category by India without offering any concessions, especially agricultural products, including dairy, tea, coffee, rubber, and tobacco products; gold and silver bullion, jewellery; other labour-intensive products such as footwear, sports goods; and scrap of many base metals.

The Services sector, a strong driver of India’s economy, will also see wide-ranging benefits. Oman’s substantial global services imports amounting to $12.52 billion, with the share of India’s exports in Oman’s global imports basket as 5.31 per cent, indicating significant untapped potential for Indian service providers.

The agreement features a comprehensive and forward-looking services package, with Oman extending substantial commitments across a broad spectrum of sectors including Computer Related Services, Business and Professional Services, Audio-visual Services, Research and Development, Education and Health Services. These commitments are expected to unlock significant new opportunities for Indian service providers, promote high-value job creation, and support expanding commercial engagement between the two countries.

A major highlight of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered wide-ranging commitments under Mode 4, including a notable increase in the quota for Intra-Corporate Transferees from 20 per cent to 50 per cent, together with a longer permitted duration of stay for Contractual Service Suppliers — extended from the existing 90 days to two years, with the possibility of a further two-year extension.

The agreement also provides for more liberal entry and stay conditions for skilled professionals in key sectors such as accountancy, taxation, architecture, medical and allied services, supporting deeper and more seamless professional engagement.

India has signed similar deals with the UK on July 2025 and New Zealand in April 2026 and concluded talks for a free trade agreement with the European Union (27-nation bloc) on January 27 this year as part of the accelerated efforts to diversify trade amid the dramatic shift in the global economic landscape triggered by the US tariff turmoil.