Muscat – The Comprehensive Economic Partnership Agreement (CEPA) between Oman and India is set to boost bilateral trade, attract investment and open new horizons for cooperation between the two countries, according to the Ministry of Commerce, Industry and Investment Promotion (MoCIIP).
His Majesty Sultan Haitham bin Tarik and Indian Prime Minister, Narendra Modi, graced the signing ceremony of the Comprehensive Economic Partnership Agreement at Al Barakah Palace on Thursday. The agreement was signed by H E Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion, on behalf of the Government of the Sultanate of Oman, and Piyush Goyal, India’s Minister of Commerce and Industry, on behalf of the Government of India.
In a press statement issued on Saturday, MoCIIP said the agreement reflects the strength of economic and trade relations between the two friendly nations and consolidates their long-standing historical partnership. The ministry noted that the CEPA marks a new milestone in enhancing trade and facilitating market access, with the aim of promoting the exchange of goods and services, attracting quality investments and expanding cooperation in priority sectors for both sides.
MoCIIP stated that trade between Oman and India reached approximately US$7bn in 2024, making India one of the sultanate’s most important trading partners, particularly for non-oil exports. These include polyethylene, urea, gypsum, ethylene and several industrial products linked to the petrochemical and metals sectors. Further expansion is expected, given the enhanced preferential access to the Indian market under the agreement.
Under the CEPA, Oman achieved a high level of trade liberalisation, covering 97.4% of total Omani goods based on current export volumes. Overall market access to India will reach around 77.8%, with special liberalisation granted for a number of goods of strategic importance to national industries. In return, Oman has granted India phased customs liberalisation under clear timetables, reaching 99.22%, in line with national economic objectives and policies aimed at protecting local industries.
The agreement comprises 16 main chapters and several technical annexes covering trade in goods, national treatment, the elimination or reduction of customs duties, import and export procedures, rules of origin, trade remedies, sanitary and technical measures, and trade facilitation. It also includes chapters on intellectual property, the movement of natural persons, small and medium-sized enterprises (SMEs), and economic and technical cooperation, as well as a chapter on trade in services regulating market access, preferential treatment and transparency requirements.
MoCIIP emphasised that the agreement gives special attention to protecting national industries through provisions on anti-dumping, countervailing and safeguard measures, as well as mechanisms to protect the balance of payments. It also reaffirms the continued application of Omanisation regulations, including negative lists and professions reserved for Omani nationals.
The ministry added that the agreement is expected to strengthen food and drug security and support cooperation in agriculture, health and biotechnology, as well as digital trade, logistics, mining, innovation, space and tourism, in line with the objectives of Oman Vision 2040.
