Muscat is New Delhi’s third-largest export destination in the Gulf Cooperation Council (GCC) bloc
India has signed a trade agreement with Oman that allows duty-free access for most of the country’s exports to the Gulf nation.
The announcement comes at a time when India is negotiating a trade pact with the US, its largest export market.
“Today, we are taking such a historic decision, the echo of which will be heard for many decades to come,” Indian Prime Minister Narendra Modi said at the India-Oman Business Summit in Muscat.
“Comprehensive Economic Partnership Agreement that is, CEPA, will give our partnership new confidence and new energy in the 21st century. This is a blueprint of our shared future. It will boost our trade… opening new doors to opportunities in every sector,” Modi added.
The agreement is expected to provide duty-free access for 98% of India’s exports, including textiles, agriculture, and leather goods to Oman.
A new chapter in India-Oman strategic partnership!
India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) today, marking a significant milestone in the bilateral economic relations.
India will reduce tariffs on Oman’s products, including dates, marbles, and petrochemical items.
New Delhi has also secured tariff elimination for its key labor-intensive sectors, including gems and jewellery, textiles, agricultural and engineering products, and auto through the deal, the PTI news agency reported.
India-Oman bilateral trade amounted to $10.5 billion in 2024-25.
India signed a trade pact with Mauritius in February 2021, followed by the UAE in February 2022, Australia in April 2022, the European Free Trade Association in February 2024, and the United Kingdom in July this year.
New Delhi is negotiating a trade deal with the US, which slapped 50% tariffs on the South Asian nation in August, half of it as punitive levies for its import of Russian oil.
Earlier this month, US President Donald Trump threatened to impose additional tariffs on India, accusing it of dumping rice into the US.
New Delhi is also seeking a preferential trade deal with Mexico in order to mitigate a tariff hike of up to 50%, as well as with a dozen other countries or trading blocs.
