India and Oman are on the verge of finalizing a landmark free trade agreement, officially termed the Comprehensive Economic Partnership Agreement (CEPA), according to senior government officials. The announcement is expected “much sooner” than the previously estimated two to three months, with both countries planning a joint declaration once internal approvals are completed.
The text of the agreement is currently being translated into Arabic for review by Oman’s cabinet. Once approved, both governments will formally sign and announce the CEPA, which has been under negotiation since November 2023.
The agreement will significantly reduce or eliminate customs duties on a wide range of goods traded between the two nations. It will also simplify regulations to promote trade in services and attract bilateral investments. The pact is expected to deepen economic ties and enhance market access for Indian exporters in the Gulf region.
Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries. In FY 2024–25, bilateral trade exceeded $10 billion, with Indian exports totaling $4.06 billion and imports at $6.55 billion. Over 70% of India’s imports from Oman consist of petroleum products and urea, followed by polymers, pet coke, gypsum, chemicals, and iron and steel.
India already has a similar CEPA with the United Arab Emirates, which came into effect in May 2022. The upcoming agreement with Oman is expected to further strengthen India’s trade footprint in the Gulf region and support its broader economic diplomacy goals.
