Mint Explainer | India–Oman trade deal: Who gains and what’s at stake
Bilateral trade between India and Oman stands at just $10 billion. Yet the Comprehensive Economic Partnership Agreement (CEPA) signed last week during Prime Minister Narendra Modi’s visit marks a significant shift. Mint explains why.
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.
What is the trade deal with Oman?
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.
What goods do India and Oman trade today?
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.
How will this deal benefit India?
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.
Does the deal serve a bigger strategic goal?
Yes.
India has long sought a trade agreement with the six-member Gulf Cooperation Council (GCC)—Saudi Arabia, UAE, Qatar, Oman, Kuwait and Bahrain—but negotiations have stalled.
With bilateral deals now in place with the UAE and Oman, momentum towards a broader GCC agreement has improved.
What about India’s other trade deals?
They remain a work in progress. After the US imposed punitive tariffs, the government has stepped up efforts to diversify export markets and reduce dependence on any single country.
Talks with the European Union, which had stalled earlier, have been revived. Last week, the Netherlands’ foreign minister said negotiations on the India–EU trade deal are in the final stages and could conclude soon. India is also in talks with New Zealand and Chile, while the India–UK trade agreement signed in May this year is expected to be operationalised shortly.
What is the status of India-US bilateral trade deal?
Negotiations continue, but a deal remains elusive. A recent visit by a US trade delegation did not yield a breakthrough, even as Prime Minister Narendra Modi and President Donald Trump maintain regular contact.
The US wants India to import more energy and agricultural products. While India is open to increasing energy imports, opening up its farm sector remains a red line. Indian officials now expect an agreement only by March next year.
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