India-Oman free trade pact to kick in on Monday
New Delhi, May 31
India-Oman Comprehensive Economic Partnership Agreement offering zero duty access to a range of Indian labour-intensive exports, will kick in from Monday.
The Finance Ministry on Sunday issued notification on duty concessions on Omani goods under trade pact with India, which will come into effect from June 1.
India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) in December last year during Prime Minister Narendra Modi's visit to Muscat.
Partnership Agreement (CEPA) was signed in December last year.
"Provided that the (duty) exemption shall be available only if the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the Sultanate of Oman," the finance ministry stated.
This notification will come into force on June 1, 2026, the finance ministry said.
Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India's exports to Oman. All major labour-intensive sectors including Gems & Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and Automobiles receive full tariff elimination.
India is offering tariff liberalisation on 77.79 per cent of its total tariff lines which covers 94.81 per cent of India's imports from Oman by value. For the products of export interest to Oman and which are sensitive to India, the offer is mostly a tariff-rate quota (TRQ) based tariff liberalisation.
To safeguard its interest, sensitive products have been kept in the exclusion category by India without offering any concessions, especially agricultural products, including dairy, tea, coffee, rubber, and tobacco products; gold and silver bullion, jewellery; other labour-intensive products such as footwear, sports goods; and scrap of many base metals.
The Services sector, a strong driver of India's economy, will also see wide-ranging benefits. Oman's substantial global services imports amounting to $12.52 billion, with the share of India's exports in Oman's global imports basket as 5.31 per cent, indicating significant untapped potential for Indian service providers.
The agreement features a comprehensive and forward-looking services package, with Oman extending substantial commitments across a broad spectrum of sectors including Computer Related Services, Business and Professional Services, Audio-visual Services, Research and Development, Education and Health Services. These commitments are expected to unlock significant new opportunities for Indian service providers, promote high-value job creation, and support expanding commercial engagement between the two countries.
A major highlight of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered wide-ranging commitments under Mode 4, including a notable increase in the quota for Intra-Corporate Transferees from 20 per cent to 50 per cent, together with a longer permitted duration of stay for Contractual Service Suppliers -- extended from the existing 90 days to two years, with the possibility of a further two-year extension.
The agreement also provides for more liberal entry and stay conditions for skilled professionals in key sectors such as accountancy, taxation, architecture, medical and allied services, supporting deeper and more seamless professional engagement.
India has signed similar deals with the UK on July 2025 and New Zealand in April 2026 and concluded talks for a free trade agreement with the European Union (27-nation bloc) on January 27 this year as part of the accelerated efforts to diversify trade amid the dramatic shift in the global economic landscape triggered by the US tariff turmoil.
— IANS
Reader Comments
Happy to see India signing multiple FTAs. The UK deal in July 2025, New Zealand in 2026, EU talks concluded - and now Oman. We need this diversification especially with the US tariff situation. Smart strategic planning by the commerce ministry.
I'm cautiously optimistic. While duty-free access is good, we need to ensure our dairy, tea, coffee and rubber farmers are protected. The exclusion list gives some comfort, but implementation is key. Hope this doesn't hurt our small farmers.
This is a win-win! Indian professionals get longer stay permits (2 years vs 90 days) and quota for intra-corporate transferees increased to 50%. Our IT, medical and legal sectors will really benefit from Mode 4 commitments. Oman is a great market for skilled Indians! 🚀
One concern: Are we giving away too much on services? Oman's services imports are $12.52 billion and our share is only 5.31% - that's $665 million. We need real data on how many Indian firms will actually benefit from this. Not just headlines.
Finally some good economic news! 🙌 The diversified approach - UK, NZ, EU, now Oman - shows India is serious about reducing dependence on any single market. But execution matters. Let's see if our customs and trade infrastructure can handle the increased volume efficiently.
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