Muscat, December 18, 2025 — In a historic move to deepen economic integration within the Gulf region, India and Oman officially signed a Comprehensive Economic Partnership Agreement (CEPA) today. The pact was formalized in Muscat by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry & Investment Promotion, Qais bin Mohammed Al Yousef, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik. This agreement, the second major trade deal signed by India in the last six months following the UK pact, marks a milestone in India’s strategic outreach, securing zero-duty access for 98.08% of Oman’s tariff lines. This covers a staggering 99.38% of India’s exports by value, providing an unprecedented boost to labor-intensive sectors such as textiles, gems and jewelry, leather, pharmaceuticals, and engineering goods.
The CEPA is set to transform the services sector by unlocking access to 127 sub-sectors, including IT, healthcare, education, and R&D. A standout feature of the agreement is the enhanced mobility framework for professionals; Oman has significantly increased quotas for intra-corporate transferees and extended stay durations for contractual service suppliers from 90 days to up to four years. Furthermore, the agreement introduces a world-first commitment by any nation on Traditional Medicine, opening massive avenues for India’s AYUSH and wellness sectors. To support the pharmaceutical industry, the deal also includes provisions for fast-tracking marketing authorizations for Indian products already approved by global regulators like the USFDA and EMA, drastically reducing time-to-market and export costs.
Beyond merchandise and services, the partnership is geared toward a “future-ready” economy through collaborations in Artificial Intelligence (AI), green energy, and digital public infrastructure. Prime Minister Modi highlighted that India’s UPI, which now handles nearly half of all global digital payments, serves as a model for this new economic DNA. With over 6,000 Indian establishments already operating in the Sultanate and a diaspora of 700,000 contributing to the local economy, the CEPA provides a stable, 100% FDI-friendly framework. By eliminating non-tariff barriers and fostering mutual recognition for certifications like Halal and organic standards, this agreement ensures that the India-Oman relationship remains a cornerstone of stability and prosperity in the Middle East.
