India‑Oman CEPA Takes Effect June 1, Unlocking Duty‑Free Trade

India and Oman formally brought their Comprehensive Economic Partnership Agreement (CEPA) into force on 1 June 2026. The pact gives Indian exporters 100 % duty‑free market access to 98.08 % of Oman’s tariff lines, covering 99.38 % of the bilateral trade value. Oman eliminates a 5 % import duty on Indian goods worth about $3.64 billion, while India offers concessions on 77.79 % of its tariff lines, covering 94.81 % of Omani imports, with sensitive sectors such as dairy, tea, coffee, spices and certain metals excluded.

Key export sectors that receive immediate zero‑duty treatment include textiles, agricultural products, gems and jewellery, transport equipment, precision instruments, processed foods and marine products. The agreement also expands services cooperation and mobility, raising the intra‑corporate transferee quota from 20 % to 50 % and allowing contractual service suppliers stays of up to two years, with possible extensions. Oman commits 100 % foreign‑direct‑investment access for Indian companies in several service areas.

Bilateral trade between the two countries reached $11.18 billion in FY 2025‑26 (India’s exports $4.02 billion, imports $7.16 billion). CEPA is the fifth free‑trade deal signed under Prime Minister Narendra Modi’s government. Industry leaders in Kashmir anticipate new export opportunities for handicrafts and high‑value agricultural products, citing the reduced barriers and expanded market access.

The Central Board of Indirect Taxes and Customs (CBIC) issued new rules on the determination of origin of goods under the CEPA, effective from the same date, to ensure compliance with the tariff concessions.