Mint Explainer: Why is the India-Oman trade deal significant?

Subscribe to enjoy similar stories. India and Oman trade goods worth roughly $10 billion annually. Still, the CEPA signed last week comes at a pivotal moment for India’s trade policy, as it seeks deeper market access, supply-chain security and services expansion.

Mint breaks down what the India–Oman CEPA covers, who stands to gain, and why the agreement carries significance beyond headline trade numbers. The CEPA is a broad agreement covering both trade and investment. Oman will provide zero-duty access on 98% of its tariff lines, covering 99% of India’s exports by value.

India has agreed to eliminate or reduce tariffs on 78% of its tariff lines, covering 95% of Oman’s exports. Sensitive items for India—such as dates, marbles and petrochemicals—will be allowed through limited quotas. Products including dairy, coffee, tea, gold and silver have been excluded to protect domestic producers.

India exports naphtha, petrol, rice, iron and steel products, beauty and personal care items, and ceramic goods to Oman. Oman’s key exports to India include crude oil, liquefied natural gas, fertilizers, petroleum coke and various chemicals. India’s bilateral trade with Oman has slowed in recent years.

After peaking at $12.4 billion in FY23, it declined to $10.6 billion in FY25. The CEPA is expected to revive momentum. Indian products such as gems and jewellery, textiles, leather footwear, engineering goods and pharmaceuticals will now enjoy duty-free access, compared to earlier duties of at least 5%.

This relief comes at a time when Indian exporters are facing higher US tariffs. India’s services exports to Oman—currently just 5% of total trade—are also expected to grow. Yes.