India’s trade pact with Oman is set to come into force on Monday (June 1), after both sides signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025.Having learnt a few lessons from India’s FTA with the UAE, government sources had earlier said that India held firm on its stance to exclude gold and silver bullion, some petroleum products, and non-ferrous metals from the CEPA, adding that the trade pact will act as a template for FTA negotiations with the Gulf Cooperation Council (GCC).
Stating that downstream petrochemicals, dates, decorative marble, and frankincense will become cheaper in the Indian market courtesy of enhanced market access for Oman’s exports, sources had pointed out that India aims to increase merchandise exports to Oman by 50%, from the current $4.06 billion to over $6 billion in the next three years, and to $10 billion in the medium term.
While India has placed 2,789 tariff lines on the exclusion list to protect the interests of its farmers and maintain manufacturing competitiveness, it has excluded goods such as alcohol, tobacco, plantains, and pork from the CEPA’s purview in view of social sensitivities on Oman’s side.Assuring that the Omanisation policy will not be changed to the detriment of Indian workers, government sources had pointed out that the FTA mandates equal opportunities for workers from SAARC countries. Oman’s “Omanisation” policy aims to replace foreign workers with locals across sectors, and the policy keeps changing across sectors in terms of the percentage of locals required to be hired.Highlighting regulatory fast-tracking for pharma exports, sources had stated that India can avail opportunities to increase its export share from the current 10.24% in agricultural products and 22% in textiles within Oman’s import basket. Oman’s proximity to India and the availability of land have also been described as opportunities for the co-location of Indian industries and workers.
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