Thursday 08 / January / 2026
MUSCAT: The Comprehensive Economic Partnership Agreement (CEPA) signed between Oman and India during Indian Prime Minister Narendra Modi’s recent visit to the Sultanate is expected to significantly enhance trade flows, accelerate technology-led cooperation and support Oman’s long-term economic diversification strategy, according to Alkesh Joshi, Partner, Oman Tax Leader at EY Oman.
Joshi said the agreement marks a shift from conventional free trade deals towards a modern, technology-enabled trade framework.
“CEPA is not just about reducing tariffs; it is about building a frictionless trade corridor powered by technology and trust,” he told Times of Oman, adding that the pact introduces faster customs processes, regulatory cooperation and deeper integration across goods, services and investment.
Bilateral trade between Oman and India has already reached US$10.61 billion in FY 2024–25, reflecting the depth of economic ties between the two countries. Oman currently hosts over 6,000 India–Oman joint ventures, while cumulative Indian investment into the Sultanate stands at US$675 million. At the same time, Omani investment into India has crossed US$610 million since 2000.
Trade balance continues to favour Oman
Recent trade figures underline Oman’s strong export position. In FY 2024–25, Oman recorded a trade surplus of US$2.48 billion with India, compared to US$94.37 million the previous year, according to official data.
Joshi noted that Omani exports to India have consistently outpaced imports, and said CEPA-led liberalisation is expected to expand trade volumes further for both economies.
Under the agreement, Oman has granted zero-duty access on 98 percent of its tariff lines for Indian goods, covering 99 percent of imports by value. India, in turn, has offered tariff concessions on 78 percent of its tariff lines, accounting for 95 per cent of Omani exports by value.
“This level of market access creates certainty for exporters and investors on both sides,” Joshi said.
Customs reform and paperless trade
CEPA introduces wide-ranging reforms aimed at reducing trade frictions. Provisions on advance rulings, single-window systems and risk-based customs clearance are expected to shorten cargo dwell times and reduce compliance costs.
“These measures signal a move towards paperless trade and faster logistics - critical for Oman’s role as a regional trade hub,” Joshi said.
Rules of origin embedded in the agreement ensure that preferential access is limited to goods with substantial value addition, protecting domestic industries while preserving the credibility of the pact.
Services, digital trade and talent mobility
A key pillar of CEPA is services liberalisation, covering professional services, IT, healthcare, education, financial services and maritime transport.
Streamlined movement of business visitors and intra-corporate transferees is expected to boost talent mobility and knowledge transfer.
“This agreement positions Oman and India as digital trade partners in a region hungry for tech-driven growth,” Joshi said.
He added that the inflow of Indian professionals into emerging sectors such as renewable energy, railways, solar manufacturing, fintech, food technology and agriculture will help build local capabilities and support the development of a skilled national workforce.
Regulatory cooperation and strategic sectors
The agreement also strengthens regulatory cooperation, particularly in pharmaceuticals and organic products. Fast-track approvals for medicines certified by international regulators are expected to enhance healthcare resilience, while mutual recognition of organic certification supports sustainable agriculture and niche exports.
Looking ahead, CEPA promotes cooperation in future-focused sectors including the digital economy, renewable energy, space technology, defence manufacturing and innovation ecosystems.
Dedicated provisions for small and medium enterprises aim to integrate SMEs into global supply chains through digital platforms and capacity-building initiatives.
Joshi said CEPA aligns closely with Oman Vision 2040, which prioritises diversification beyond hydrocarbons and innovation-driven growth.
Oman’s strategic location, investor-friendly policies such as 100 per cent foreign ownership, and infrastructure hubs including Duqm Special Economic Zone and Khazaen Economic City further strengthen the agreement’s impact.
“CEPA is a clear example of economic diplomacy driving diversification, competitiveness and long-term growth,” Joshi said. “It supports Oman’s Vision 2040 while advancing India’s global trade ambitions.”
