Overview On December 18, 2025 , India and Oman formalized their economic partnership by signing a Comprehensive Economic Partnership Agreement (CEPA) . This agreement aims to significantly enhance bilateral trade and investment by reducing or eliminating tariffs on a wide range of goods and services. The CEPA also focuses on facilitating the movement of professionals and promoting collaboration in various sectors. Key Developments Tariff Liberalization Oman's Offer: Oman will grant India duty-free access to 98.08% of its tariff lines, covering 99.38% of India's exports to Oman. India's Offer: India will liberalize tariffs on 77.79% of its total tariff lines, covering 94.81% of India's imports from Oman. Service Sector Benefits The CEPA includes several concessions designed to benefit India's service sector, particularly in terms of the mobility of workers and enhanced market access. Bilateral Trade Figures (2024-25) India's Exports to Oman: $4.06 billion ( 0.93% of India's total exports) India's Imports from Oman: $6.5 billion ( 0.91% of India's total imports) Statements from Leaders Prime Minister Narendra Modi stated that the CEPA would infuse the India-Oman partnership with renewed faith and energy, opening doors to new opportunities in every sector. Commerce and Industry Minister Piyush Goyal highlighted that the deal would significantly benefit labor-intensive sectors, generating employment and strengthening MSMEs. Strategic Significance This is the first bilateral agreement that Oman has signed with any country since its deal with the U.S. in 2006 . It is the second deal India has signed with a country in the Gulf Cooperation Council (GCC) , the first being with the U.A.E. in February 2022 . Mr. Goyal noted that a trade deal with Oman serves as a gateway for India to the Gulf Cooperation Council region, eastern Europe, central Asia, and Africa. Key Provisions and Benefits Enhanced Mobility of Workers Oman has offered wide-ranging commitments under Mode 4, including an increase in the quota for Intra-Corporate Transferees from 20% to 50% . The permitted duration of stay for Contractual Service Suppliers has been extended from 90 days to two years , with the possibility of a further two-year extension. More liberal entry and stay conditions for skilled professionals in key sectors such as accountancy, taxation, architecture, medical and allied services. Boost to Services Sector Oman is providing 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. The CEPA provides for 100% Foreign Direct Investment by Indian companies in major services sectors in Oman through commercial presence. Sectors to Benefit Labor-intensive sectors such as gems & jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles will receive full tariff elimination under the deal. Products Kept Out of the Deal India has kept sensitive products such as agricultural products (including dairy, tea, coffee, rubber, and tobacco products), gold and silver bullion, jewellery, and other labor-intensive products (such as footwear, sports goods, and the scrap of many base metals) out of the deal. Trade Composition Major Export Categories from India to Oman (2024-25) Petroleum products: 35.1% Processed minerals: 9.2% Aircraft, spacecraft and parts: 4.3% Cosmetics and toiletries: 3.6% Basmati rice: 3.6% Major Import Categories from Oman to India (2024-25) Crude oil and petroleum gases: 38% UPSC Relevance The India-Oman CEPA is relevant to the UPSC syllabus under GS2 (International Relations) and GS3 (Economy) . It highlights India's efforts to strengthen economic ties with countries in the Gulf region and diversify its trade partnerships. The agreement's provisions on tariff liberalization, service sector benefits, and enhanced mobility of workers are important for understanding the potential impact on India's economy and its relations with Oman.