New Delhi, India – The Oman-India Comprehensive Economic Partnership Agreement (CEPA) entered into force on Monday, marking a significant milestone in bilateral economic relations and paving the way for deeper trade, investment and strategic cooperation between the two countries.

The agreement was signed in Muscat on December 18, 2025, in the presence of His Majesty Sultan Haitham bin Tarik and Indian Prime Minister Narendra Modi. Following the completion of domestic procedures by both sides, the pact officially came into effect on June 1, 2026.

The agreement was operationalised in New Delhi on Monday in the presence of Indian Minister of Commerce and Industry Piyush Goyal and Issa Saleh Al Shibani, Oman’s Ambassador to India.

To mark the occasion, the first consignments benefiting from preferential tariff treatment under the agreement, including agricultural products and gems and jewellery exports from Mumbai, Kolkata and Chennai, were flagged off.

Oman is India’s second-largest trading partner in the Gulf region and serves as a strategic gateway to GCC markets through its ports and logistics infrastructure. Bilateral trade reached US$11.18bn in the 2025-26 financial year, up from US$10.61bn in 2024-25.

According to an Indian government statement, the agreement covers goods, services, professional mobility, regulatory cooperation and safeguards against non-tariff barriers, extending beyond tariff reductions to establish a long-term framework for economic collaboration.

“The Oman-India CEPA marks a defining milestone in India’s engagement with Oman and reflects Prime Minister Narendra Modi’s vision of forging trade partnerships that deliver gains for farmers, fishermen, youth, women, entrepreneurs and MSMEs,” Goyal said.

“This agreement will be a force multiplier in the Gulf region.”

He added that 99.38% of India’s exports would receive duty-free access under the agreement, creating new opportunities for exporters and professionals.

“Oman is our trusted partner, a bridge for our people and a gateway to the Gulf and East Africa. CEPA will strengthen India’s integration into regional and global value chains,” Goyal said, noting that the pact would support investment, job creation and competitiveness in labour-intensive sectors.

Indian Commerce Secretary Rajesh Agrawal said the agreement comes at a time when global trade is being reshaped by supply-chain diversification and emerging economic corridors.

“By fostering closer integration across trade, services, investment and logistics, the agreement creates a framework for more resilient value chains, greater economic competitiveness and a stronger strategic partnership with regional and global relevance,” Agrawal said.

The agreement is expected to further strengthen economic links between Oman and India while supporting long-term growth, investment and commercial engagement across key sectors.