Wednesday 19 / August / 2026
Muscat: The Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and the Republic of India has entered into force, opening a new phase of economic cooperation aimed at expanding bilateral trade, improving market access and attracting investment between the two countries.
The agreement took effect on June 1, 2026, following its ratification by Oman through Royal Decree No. 30/2026, issued on February 15, 2026. The agreement was originally signed in Muscat on December 18, 2025, under the patronage of His Majesty Sultan Haitham bin Tarik and Indian Prime Minister Narendra Modi.
The CEPA is designed to significantly enhance economic and commercial relations between Oman and India by increasing the volume of exports and imports, expanding the range of goods and services traded and creating more favourable conditions for businesses operating in both markets.
A central feature of the agreement is the reduction or elimination of customs duties on qualifying goods. According to Oman Customs, Indian-origin goods that meet the agreement’s rules of origin and fall under Category A receive customs-duty exemption from the date the agreement entered into force.
Products classified under Category B will see customs duties reduced gradually over five years, with tariffs reaching zero on June 1, 2030. Goods in Category C will undergo gradual reductions over 10 years, reaching zero tariffs on June 1, 2035. Certain products listed as special, prohibited or protected goods remain excluded from the preferential treatment.
The preferential tariff arrangements are expected to reduce the cost of trade and improve the competitiveness of products entering the two markets.
For Omani exporters, the agreement provides preferential access to the large Indian market, creating opportunities to expand sales and strengthen the position of national products.
The agreement also seeks to address non-tariff barriers by simplifying customs procedures, harmonising requirements where applicable and improving transparency in commercial processes.
These measures are intended to make the movement of goods across borders faster and more efficient.
For businesses seeking preferential treatment, Oman Customs requires supporting documentation, including a commercial invoice, bill of lading, a request for preferential treatment and a valid certificate of origin issued in accordance with the CEPA. The certificate of origin is generally valid for 12 months from its date of issue and must be submitted during its validity period to obtain preferential treatment.
The agreement also establishes rules governing the direct shipment and transit of goods. Products transported through third countries can qualify for preferential treatment provided they remain under customs control, are not released for domestic consumption or substantially processed in the transit country, and meet the agreement’s documentary requirements.
Beyond tariffs and customs procedures, the CEPA is expected to strengthen investment cooperation and support collaboration in strategic sectors. When the agreement was signed, Oman News Agency reported that its framework covers areas including energy, technology and manufacturing, alongside broader trade and investment cooperation.
The agreement is also viewed as an important instrument in Oman’s efforts to diversify its economy and strengthen non-oil sources of revenue. The Ministry of Commerce, Industry and Investment Promotion previously said the CEPA would expand commercial exchange, enhance regional economic integration, diversify non-oil revenues and increase Oman’s attractiveness as an investment destination.
For Oman, the agreement also supports the country’s ambition to position itself as a strategic gateway linking the markets of the Gulf, Africa and Asia. Its geographic location, ports and logistics infrastructure provide opportunities for Indian companies seeking access to regional markets, while Omani businesses can use the agreement to improve their access to India.
The CEPA is therefore expected to benefit not only traditional merchandise trade but also investment and productive sectors, potentially supporting the creation of new economic opportunities and jobs.
Oman Customs has also introduced online services allowing businesses to check applicable customs duties and import requirements, including preferential tariffs where trade agreements apply. The services are intended to improve transparency and enable companies to determine requirements before importing or exporting goods.
The implementation of the Oman-India CEPA marks a significant development in the longstanding economic relationship between the two countries. With tariff reductions, streamlined customs procedures, preferential market access and a wider framework for investment cooperation, the agreement is expected to provide a stronger foundation for bilateral trade and support Oman’s broader economic diversification objectives under Oman Vision 2040.
As the agreement moves into its implementation phase, businesses in both countries will be able to increasingly utilise its preferential provisions, subject to the applicable rules of origin, product classifications and other requirements established under the agreement.
