India–Oman CEPA Set to Transform Trade Ties with Swift Implementation

India and Oman have entered a new phase of economic cooperation with the signing of the Comprehensive Economic Partnership Agreement (CEPA), a landmark trade pact expected to come into force within the next three months. Signed during Prime Minister Narendra Modi’s official visit to Muscat, the agreement reflects a shared intent to deepen bilateral trade, enhance investment flows, and strengthen long-term strategic engagement between the two nations.

Unlike several earlier trade agreements that faced prolonged delays before implementation, both governments have signalled a clear commitment to operationalise the CEPA swiftly, ensuring that businesses and exporters begin to see tangible benefits without bureaucratic lag.

In exchange, India has agreed to liberalise tariffs on about 78% of its tariff lines, largely through tariff-rate quotas aimed at safeguarding sensitive sectors | Business Today

A Faster Rollout Backed by Experience

Commerce and Industry Minister Piyush Goyal has underscored that India and Oman are drawing lessons from past trade pacts, some of which took years to become operational. Determined to avoid similar delays, both sides are working toward completing legal and procedural formalities on a fast-track basis. If achieved within the projected timeframe, the India–Oman CEPA would stand out as one of India’s quickest trade agreements to move from signing to execution.

This accelerated approach highlights a growing urgency in India’s trade strategy, particularly at a time when global supply chains are being re-aligned and countries are seeking dependable economic partners.

Near-Total Tariff Elimination to Drive Trade Growth

At the core of the CEPA lies an ambitious tariff liberalisation framework. Oman has agreed to provide zero-duty access on approximately 98 percent of its tariff lines, covering nearly the entire value of India’s current exports to the country. This concession is expected to significantly improve the competitiveness of Indian goods in the Omani market, especially in labour-intensive and manufacturing-led sectors.

India, in turn, will reduce or eliminate tariffs on around 78 percent of its tariff lines, allowing greater access to Omani products while retaining safeguards for sensitive domestic sectors. The carefully calibrated structure aims to balance trade openness with protection for vulnerable industries, ensuring mutual gains without economic disruption.

Pharmaceutical Sector Emerges as a Key Beneficiary

One of the most impactful elements of the CEPA is the decision to fast-track pharmaceutical approvals, a move that could substantially boost India’s presence in Oman’s healthcare market. Indian pharmaceutical products and manufacturing facilities already approved by globally recognised regulators such as the USFDA, EMA, UK MHRA, and Australia’s TGA will be eligible for automatic approval within 90 days in Oman.

This provision removes a major regulatory hurdle that often delays market entry, enabling Indian drug manufacturers to expand exports of medicines, vaccines, and active pharmaceutical ingredients more efficiently. The agreement also includes recognition of Good Manufacturing Practices and inspection outcomes, reducing duplication and compliance costs for Indian companies.

Expanding Services, Investment, and Professional Mobility

Beyond goods and pharmaceuticals, the CEPA extends into services and investment facilitation. Indian professionals in sectors such as information technology, healthcare, engineering, education, and research are expected to gain improved access to opportunities in Oman. The agreement also seeks to promote investment cooperation and ease procedural barriers, creating a more predictable environment for cross-border business activity.

Enhanced mobility provisions are particularly significant given the strong Indian diaspora presence in Oman, and discussions around social security arrangements could further protect the interests of Indian workers abroad.

Strengthening Strategic and Economic Partnership

Bilateral trade between India and Oman has already crossed $10.6 billion in recent years, driven by energy imports, manufactured goods, and services. The CEPA is expected to push this figure higher by diversifying trade baskets and encouraging value-added exports. Strategically, the agreement reinforces India’s engagement with the Gulf region, an area critical for energy security, maritime cooperation, and geopolitical stability.

The pact also aligns with India’s broader push to counter global protectionist trends by forging high-quality trade agreements with trusted partners.

The MGMM Outlook

India’s Comprehensive Economic Partnership Agreement with Oman marks a decisive shift toward faster, outcome-driven trade diplomacy. Unlike earlier agreements that remained stuck in procedural delays, both governments are moving swiftly to operationalise this pact within months, reflecting urgency shaped by changing global supply chains and regional economic realignments. Near-total tariff elimination on Indian exports, combined with calibrated market access for Omani goods, positions the agreement as a balanced framework that promotes growth without exposing sensitive domestic sectors to disruption. This approach signals a maturing trade strategy that prioritises speed, clarity, and measurable commercial benefits.

The CEPA’s most transformative impact is likely to be felt in pharmaceuticals, services, and professional mobility. Fast-tracked drug approvals based on globally recognised regulatory clearances remove long-standing barriers for Indian pharma companies, strengthening India’s role in Oman’s healthcare ecosystem. Expanded access for Indian professionals and smoother investment facilitation further deepen economic integration, while reinforcing people-to-people ties anchored by the Indian diaspora. As bilateral trade already exceeds $10 billion, the agreement is poised to diversify exports, enhance value addition, and strengthen India’s strategic footprint in the Gulf, turning diplomatic engagement into tangible economic momentum.

(Sources: Moneycontrol, Business Today, Economic Times)