India-Oman CEPA to Take Effect on June 1, 2026, Offering Duty-Free Access for 99% of India’s Exports

India’s Comprehensive Economic Partnership Agreement (CEPA) with Oman is expected to come into effect on June 1, providing duty-free access for a large share of Indian exports to the Gulf nation, as per news reports.  

The agreement, signed in December after negotiations that began in 2023, grants zero-duty access on 98% of tariff lines, covering 99% of India’s export value to Oman. 

The pact will remove tariffs of up to 5% on Indian exports worth around $3.64 billion, covering a range of manufactured and industrial goods. 

Bilateral Trade Remains Concentrated 

Trade data indicates that India’s exports to Oman have seen limited growth in recent years. Total exports stood at $4.02 billion in FY26, compared with $4.07 billion in FY25. 

Petroleum-linked products continue to account for a large share of shipments. Exports of light oils and other preparations increased to $1.57 billion in FY26 from $1.35 billion a year earlier. Aluminium oxide remained the second-largest export category at $278 million, though shipments declined 23.5% year-on-year. 

Exports of semi-worked iron and steel products fell 8.3% to $167 million during the year. 

New Sectors to Gain Access 

The agreement provides duty-free entry for products from sectors including pharmaceuticals, engineering goods, chemicals, gems and jewellery, and textiles.  

These segments currently account for a relatively smaller share of exports to Oman compared with energy-related products. 

Some engineering categories have already recorded higher shipments. Exports of line pipes used in oil and gas pipelines rose to $111.65 million in FY26 from $8.14 million in FY25. Tanker exports increased to $110.83 million from $9.43 million over the same period. 

Oman’s Role in Regional Trade 

The agreement also carries strategic importance because of Oman’s location within the Gulf region.  

The country offers access to Gulf Cooperation Council (GCC) markets through routes that reduce dependence on the Strait of Hormuz, a key shipping corridor that has faced disruptions during periods of regional tension. 

GCC countries account for roughly 12% of India’s total exports. Shipments to the region declined 35% in April amid supply-chain disruptions linked to the US-Iran conflict. 

Sensitive Sectors Kept Outside Deal 

India has offered tariff concessions on nearly 78% of tariff lines under the agreement while excluding several sectors from tariff liberalisation.  

These include dairy products, edible oils, oilseeds, fruits and vegetables, spices, coffee, tea, footwear, rubber products, petroleum oils, and selected chemical categories. 

The exclusions leave a number of agricultural and industrial segments outside the scope of the agreement while allowing market access for other export sectors. 

Read More: Christmas Orders From US, Europe Drop 10-15% As West Asia Crisis Hits Indian Exporters! 

Conclusion 

With the agreement coming into force, a larger share of Indian goods will gain tariff-free entry into Oman. The pact covers most export categories and introduces a framework for deeper bilateral trade. 

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