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India-Oman Comprehensive Economic Partnership Agreement (CEPA) to Come into Force from June 1, 2026

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India and Oman have finalized the Comprehensive Economic Partnership Agreement (CEPA), signed in December 2025, and ratified by Oman through a Royal decree in February 2026. This agreement is set to come into force on June 1, 2026. CEPA is a broader trade agreement compared to traditional free trade agreements, covering goods, services, investment, and economic cooperation. Under this pact, India will receive duty-free access for 98% of its exports to Oman, including textiles, agricultural products, and leather items. Bilateral trade between the two countries reached approximately US$10.61 billion in the financial year 2024-25. The agreement aims to enhance trade volume, investment, and economic ties, strengthening India's strategic partnership with Oman and the Gulf region.

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Key Facts

  • India and Oman signed the CEPA on December 18, 2025, in Muscat.
  • Oman ratified the CEPA through a Royal decree in February 2026.
  • The agreement is expected to come into force on June 1, 2026.
  • India receives duty-free access on 98% of its export tariff lines to Oman, including textiles, agricultural products, and leather goods.
  • Bilateral trade between India and Oman reached approximately US$10.61 billion in FY 2024-25.
  • CEPA covers trade in goods, services, investment, and economic cooperation — more comprehensive than traditional Free Trade Agreements (FTAs), which primarily focus on tariff reduction.

Background & Context

India and Oman have developed a growing economic relationship backed by substantial bilateral trade and investment flows. The CEPA agreement signifies a strategic partnership designed not just to liberalize trade but also to enhance services, investment protections, and regulatory cooperation.

Oman's strategic location near the Strait of Hormuz, a key global energy transit corridor, makes it a critical gateway for India’s access to the Gulf Cooperation Council (GCC), Central Asia, and East Africa regions. The CEPA complements India's broader Gulf strategy including links with the UAE and connectivity initiatives like the India-Middle East-Europe Corridor (IMEC).

Why This Matters for Exams

This agreement is important for understanding India's expanding international trade relations and strategic partnerships in the Gulf region. Specific verified facts such as the signing date (December 18, 2025), ratification by Oman (February 2026), enforcement date (June 1, 2026), trade figures, and coverage of the CEPA compared to standard FTAs are essential for current affairs and international relations topics in competitive exams.

Points to Remember

  • CEPA is a broader economic agreement than a standard FTA, including goods, services, investment, and economic cooperation.
  • Oman ratified the India-Oman CEPA via Royal Decree 30/2026 in February 2026.
  • India gains duty-free access on about 98% of its exports to Oman, covering key sectors such as textiles, agriculture, and leather products.
  • India-Oman bilateral trade stood at about US$10.61 billion in FY 2024-25.
  • Oman's location near the Strait of Hormuz gives the agreement significant strategic importance.
  • The agreement supports sectors including petrochemicals, dates, marbles, among others on the tariff reduction list.
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