Muscat, Oman: The Oman-India Comprehensive Economic Partnership Agreement has entered into force, bringing lower tariffs, improved market access and streamlined customs procedures into effect as the two countries seek to deepen one of the Gulf’s longstanding economic relationships with India.
The agreement took effect June 1, 2026, following Oman’s ratification through Royal Decree No. 30/2026 on Feb. 15. It was signed in Muscat on Dec. 18, 2025, during a ceremony attended by Oman’s Sultan Haitham bin Tarik and Indian Prime Minister Narendra Modi.
For companies trading between the two markets, one of the most immediate changes is the preferential treatment available for qualifying products.
Under the agreement’s tariff schedule, eligible Indian-origin goods in Category A receive customs-duty exemptions from the date the CEPA entered into force, provided they satisfy the applicable rules of origin.
Duties on Category B products will be phased out over five years, reaching zero June 1, 2030. Category C products will follow a 10-year schedule, with tariffs scheduled to reach zero June 1, 2035.
Certain products designated as special, prohibited or protected remain outside the preferential arrangements.
What the deal means for businesses
The tariff reductions are intended to lower the cost of cross-border trade and improve the competitiveness of eligible products in both markets.
For Omani companies, the agreement provides preferential access to India’s large consumer and industrial market. Indian businesses, meanwhile, gain improved access to Oman and potentially wider Gulf and regional supply chains.
The pact also addresses trade barriers beyond tariffs by seeking to simplify customs procedures, improve transparency and align requirements where possible.
Businesses seeking preferential treatment must provide supporting documents, including a commercial invoice, bill of lading, a request for preferential treatment and a valid CEPA certificate of origin.
The certificate of origin is generally valid for 12 months from its date of issue and must be presented within that period when preferential treatment is being claimed.
Transit rules could support regional trade
The agreement also sets conditions under which goods moving through a third country can retain preferential status.
Products must remain under customs control while in transit, must not enter the local market for domestic consumption and cannot undergo substantial processing in the transit country. Required documentation must also be maintained.
The provisions could be particularly relevant to businesses using Oman as a logistics and distribution point between India, the Gulf and other regional markets.
Wider opportunities for Indian companies
The CEPA extends beyond merchandise trade, with the framework also supporting investment and cooperation in areas including energy, technology and manufacturing.
That broader scope could create opportunities for Indian companies looking to establish or expand operations in Oman, while giving Omani businesses a stronger platform for entering the Indian market.
The agreement also aligns with Oman’s efforts to diversify its economy and reduce reliance on oil-related revenue under Oman Vision 2040.
Oman’s location, ports and logistics infrastructure have positioned the country as a potential commercial link between Asian, Gulf and African markets. Stronger trade ties with India could reinforce that role.
A development with relevance for the Indian community
The agreement is also significant in the context of the longstanding Indian presence in Oman.
Indian nationals form one of the country’s largest expatriate communities, with deep connections to Oman’s commercial, professional and entrepreneurial sectors. Increased trade and investment between the two countries could create opportunities across businesses that already rely on India-Oman supply chains.
The potential impact extends beyond large corporations. Smaller importers, exporters, manufacturers and service providers may also benefit as they become more familiar with the agreement’s preferential provisions.
Businesses urged to check eligibility
Preferential tariffs are not automatic for every product. Companies must meet the relevant rules of origin, product classifications and documentation requirements before claiming the benefits.
Oman Customs has introduced online services that allow businesses to check applicable customs duties and import requirements, including preferential rates available under trade agreements.
The Oman-India CEPA now moves into its implementation phase, with the practical impact expected to grow as companies begin using the new tariff schedules and customs procedures.
For businesses on both sides, the focus will increasingly shift from signing the agreement to understanding its rules and using the new access to expand trade, investment and regional operations.
