The finance ministry has issued a notification on duty concessions on Omani goods under the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which will come into effect from June 1, 2026. According to reports from The Times of India, the India-Oman CEPA was signed in December 2025, marking the formal implementation of preferential trade arrangements between the two countries. The agreement represents the fifth free trade agreement under the Modi government since 2014, following previous pacts with Mauritius (April 2021), UAE (May 2022), Australia (December 2022), and the European Free Trade Association (EFTA) in October 2025. As per NDTV Profit, this will be the fifth free trade agreement implemented under the Modi government, with India having signed similar deals with the UK (July 2025) and New Zealand (April 2026), and announced the conclusion of talks with the European Union on January 27.
India is offering duty concessions on 77.79% of its total tariff lines (12,556), which covers 94.81% of India's imports from Oman by value. According to NDTV Profit, this substantial coverage ensures that the majority of trade between the countries will benefit from the preferential tariff structure under the new agreement. To protect local industries and farmers, India has put 2,789 tariff lines on its exclusion list, including transport equipment, major chemicals, cereals, fruits and vegetables, rubber, leather, textiles, footwear, petroleum oils, and mineral-based products. Strategic segments like dairy products, meat, oilseeds, vegetable oils, sugar, and food-processing residues are completely kept out of the liberalization purview. The CEPA will give a boost to India's price competitiveness, with key sectors poised for strong gains including textiles, agricultural goods, transport equipment, precision instruments, processed food and gems & jewellery. As per the latest data, India gets 100% duty-free market access for its exports to Oman, covering 98.08% of Oman's tariff lines (or product categories) covering 99.38% of the trade value.
According to the finance ministry notification, 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 that the goods are of the origin of the Sultanate of Oman. This verification process ensures that only genuine Omani products qualify for the preferential tariff treatment under the agreement. As per NDTV Profit, all zero-duty concessions kick in from "Day One" of the agreement's entry into force, with the pact creating new export opportunities in minerals, chemicals, base metals, machinery, plastic/rubber, transport/auto, instruments/clocks, glass/ceramic/marble, paper, and other sectors. Presently, only 15.33% of India's export value (11.34% of tariff lines) based on the 2022-2024 average, enters the Oman at zero duty under the MFN regime, making the CEPA significantly more beneficial for Indian exporters.
The CEPA opens up significant opportunities for Indian service professionals, with Oman making strong commitments on the temporary entry and stay of these professionals. The Intra-Corporate Transferees (ICT) cap has been increased from 20% to 50%, allowing more managerial and specialist staff from India to be sent by their companies. For the first time in any FTA, Oman has locked in specific commitments for professional service providers benefiting Indian talent in IT, accounting, engineering, medical education, construction, and consulting fields. Indian agricultural exports such as natural honey, potatoes, cashews, boneless meat, and bakery items will get immediate duty-free access into Oman. The country has agreed to dismantle tariffs on an array of items including cheese, milk cream, frozen fish, butter, meat, yogurt, pastries, cakes, chocolate, sugar confectionery, mineral water, and animal vegetable fats and oils. Oman's total global services imports in 2024 were $12.52 billion, with India accounting for 5.31%, indicating significant untapped potential for Indian service suppliers.
The Confederation of Indian Textile Industry (CITI) has welcomed the temporary removal of the 11% import duty on cotton from June 1 to October 31, 2026, calling it a significant boost for India's MSME-dominated textile and apparel sector. CITI Chairman Ashwin Chandran noted that the duty had become a major constraint for exporters, as India's textile exports are dominated by cotton and major Asian competitors already have duty-free access to cotton. The relief is particularly timed to support the textile sector as India targets $100 billion in textile and apparel exports by 2030. Chandran emphasized that cotton imports are largely quality and specification-driven, catering to specialised requirements and back-to-back export orders, and do not displace domestic cotton production. The textile and apparel sector, India's second-biggest employer and major contributor to GDP and exports, saw textile and apparel exports decline 2.2% year-on-year in FY26 to $35.79 billion, highlighting the sector's current challenges.
